By Yoshiaki Nohara - Dec 5, 2011 12:47 PM GMT+0700
Dec. 5 (Bloomberg) -- Steven Sun, head of China equity strategy at HSBC Holdings Plc, talks about the nation's stock market, economy and central bank monetary policy. Sun also discusses initial public offerings in Hong Kong. He speaks in Hong Kong with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Dec. 5 (Bloomberg) -- Clive McDonnell, Singapore-based head of emerging-market equity strategy for Standard Chartered Plc, talks about the outlook for emerging markets in Asia and their exposure to Europe's debt crisis. McDonnell also discusses the U.S. jobless rate. He speaks with John Dawson on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Asian stocks rose for a sixth day, the longest winning streak since Oct. 13, as Italy took steps to resolve its debt problems before European Union leaders meet this week to tackle the region’s crisis.
Cosco Pacific Ltd., which operates container facilities at Greece’s Piraeus port, added 0.8 percent. Li & Fung Ltd. (494), a supplier of toys and clothes to Wal-Mart Stores Inc., rose 2.9 percent after the U.S. jobless rate fell to the lowest level since March 2009. BHP Billiton Ltd. (BHP) advanced 1.7 percent to lead an increase by Australian miners after the nation’s ruling Labor Party ended a ban on uranium exports to India.
The MSCI Asia Pacific Index rose 0.2 percent to 117.92 as of 2:40 p.m. in Tokyo with six of 10 industry groups on the index gaining. The measure jumped 8 percent last week, the biggest weekly advance since Aug. 24, 2007.
“It’s pleasing that Italy backed relatively swiftly the new government to put in an austerity measure and demonstrate moving forward in terms of meeting requirements put in place by the EU,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Whether that in fact will see a quite reaction from the public, you will have to wait and see.”
Italian Measures
Stocks (MXAP) gained after Italian Prime Minister Mario Monti announced 30 billion euros ($40 billion) of austerity and growth measures yesterday. The premier will present the package, which includes a tax on luxury goods, resurrects a property levy on first homes, and forces many workers to delay retirement, to both houses of parliament today.
German Chancellor Angela Merkel meets French President Nicolas Sarkozy today to advance a plan for stricter enforcement of the region’s deficit rules that will be presented to European leaders at a summit in Brussels on Dec. 9.
“Expectations are mounting for this week’s European Union summit, making the market sensitive to any negative factors,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “They are likely to reach an agreement, but domestic issues facing Germany and France may hamper the process.”
Japan’s Nikkei 225 Stock Average rose 0.5 percent and Australia’s S&P/ASX 200 added 0.8 percent. South Korea’s Kospi Index advanced 0.2 percent. Hong Kong’s Hang Seng Index rose 0.3 percent. The MSCI Asia Pacific excluding Japan Index was little changed.
Cosco, Nintendo
Asian exporters tied to Europe rose. Cosco Pacific Ltd. (1199) added 0.8 percent to HK$9.24 in Hong Kong. Nintendo Co., the world’s largest maker of video-game players that gets more than 34 percent sales in Europe, rose 0.8 percent to 11,330 yen in Tokyo.
The MSCI Asia Pacific Index declined 15 percent this year through yesterday, compared with a 1.1 percent drop by the S&P 500 and a 13 percent slump by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.9 times estimated earnings on average, compared with 12.6 times for the S&P 500 and 10.6 times for the Stoxx 600.
Futures on the Standard & Poor’s 500 Index rose 0.8 percent today. The S&P 500 index fell less than 0.1 percent on Dec. 2, wiping out an early rally. The U.S. jobless rate slid to 8.6 percent in November, the lowest level since March 2009, and employment climbed by 120,000 workers, Labor Department figures showed on Dec. 2.
Exporters Gain
Exporters to the U.S. advanced. Li & Fung, a supplier of toys and clothes to Wal-Mart Stores Inc., jumped 2.9 percent to HK$16.88 in Hong Kong. Toyota Motor Corp., the world’s biggest carmaker by market value, gained 2.7 percent to 2,663 yen in Tokyo.
Gains in Asian stocks were limited as China’s stocks fell after a purchasing managers’ index for November dropped to 49.7 from 57.7 the previous month, the China Federation of Logistics and Purchasing said on its website. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, slid 0.9 percent.
Anhui Conch Cement Co., China’s biggest cement maker, dropped 2.4 percent to 16.44 yuan. Huaxin Cement Co., the Chinese affiliate of Holcim Ltd., lost 4.1 percent to 14.66 yuan.
Australia’s mining firms rose after the nation’s ruling Labor Party ended a ban on uranium exports to India to strengthen diplomatic ties with the South Asian nation and open a new market for suppliers. Shipping uranium to India would benefit producers such as Energy Resources of Australia Ltd. (ERA), controlled by BHP Billiton and Rio Tinto Group. Australia is the world’s third-biggest uranium supplier.
Energy Resources jumped 10 percent to A$1.57. BHP Billiton rose 1.7 percent to A$37.26 and Rio Tinto gained 1 percent to A$67.
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
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