Asian Stocks Rise a Second Day as Japan Exports Increase, Commodities Gain

By Jonathan Burgos and Shani Raja - Oct 24, 2011 9:36 AM GMT+0700

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Oct. 24 (Bloomberg) -- Nader Naeimi, a Sydney-based strategist for AMP Capital Investors Ltd., talks about Europe's sovereign debt crisis and its implications for global financial markets. Naeimi speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

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Oct. 24 (Bloomberg) -- Ryoji Musha, president of Musha Research Co., talks about the outlook for Japan's economy, currency and stock market. Japan’s exports increased more than expected in September, a sign the recovery in shipments is withstanding a weakening global economy. Musha also discusses Federal Reserve monetary policy and Europe's sovereign debt crisis. He speaks from Tokyo with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

Asian stocks climbed for a second day as higher commodity prices and better-than-estimated exports from Japan tempered concern that Europe won’t provide a solution to the debt crisis threatening the global economy.

Honda Motor Co., a Japanese carmaker that gets over 80 percent of sales overseas, rose 1.7 percent in Tokyo. Bridgestone Corp. jumped 3.8 percent after the tiremaker said it’s planning a record investment in factories to meet demand from emerging markets. BHP Billiton Ltd. (BHP), the largest global mining company, advanced 2.3 percent in Sydney after copper futures extended gains.

The MSCI Asia Pacific Index increased 1.7 percent to 117.96 as of 11:10 a.m. in Tokyo, even after European leaders meeting in Brussels yesterday ruled out tapping the central bank’s balance sheet to boost a regional rescue fund. The gauge of Asian stocks last week had its biggest weekly decline in a month after Germany said there would be no quick fix to the crisis.

“Economic expectations got so depressed during the September market rout that any signs of improvement in the economic outlook should have a positive effect on the market,” Nader Naeimi, a Sydney-based strategist for AMP Capital Investors Ltd., said by telephone. “There was no clear sign of division among European leaders, but there is also some disappointment that nothing concrete was announced.”

Japan’s Nikkei 225 (NKY) Stock Average gained 1.4 percent. Hong Kong’s Hang Seng Index jumped 3.1 percent, while China’s Shanghai Composite Index added 0.8 percent. South Korea’s Kospi Index climbed 2.4 percent and Australia’s S&P/ASX 200 rose 2 percent.

Rescue Fund

Futures on the Standard & Poor’s 500 Index fell 0.2 percent today after the European summit at the weekend. The gauge climbed 1.9 percent on Oct. 21, capping its longest weekly rally since February, as European governments considered deploying $1.3 trillion in funds to tame the crisis.

European leaders in Brussels yesterday outlined plans to aid banks, heading toward a revamped strategy to contain the debt crisis. The 13th crisis-management summit in 21 months excluded a forced restructuring of Greece’s debt, sticking with the policy of enticing bondholders to accept “voluntary” losses to help restore the country’s finances. The complete blueprint will be formed Oct. 26.

Japanese exporters climbed after a report showed the nation’s shipments increased more than expected in September as demand for cars and auto parts rose, a sign the recovery in shipments is withstanding a weakening global economy.

Honda Motor advanced 1.7 percent to 2,337 yen. Toyota Motor Corp. (7203), Japan’s biggest carmaker by sales, rose 1.1 percent to 2,575 yen and Suzuki Motor Corp. (7269), Japan’s fourth-biggest automaker by sales, climbed 3.1 percent to 1,688 yen.

Bridgestone jumped 3.8 percent to 1,759 yen. The company plans to build a factory in the U.S. to produce aircraft tires and increase manufacturing capacity in China, Chief Financial Officer Akihiro Eto said on Oct. 21. Emerging markets are expected to make up 30 percent of Bridgestone’s fuel-efficient tire sales by 2016 from less than 20 percent now, he said. The company aims to boost overall annual sales to 3.6 trillion yen by 2012, Eto added.

Raw material producers advanced as copper and oil futures extended gains. BHP Billiton gained 2.3 percent to A$36.51 in Sydney. Rio Tinto Group, the world’s second-biggest mining company by sales, jumped 3.9 percent to A$65.01. Inpex Corp. (1605), Japan’s biggest energy explorer, increased 2.6 percent to 516,000 yen in Tokyo.

To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net