Asian Stocks Advance on U.S. Profit Reports

By Yoshiaki Nohara - Dec 26, 2011 8:41 AM GMT+0700

Asian stocks rose, extending last week’s gain, as reports showed orders for U.S. durable goods and home sales gained, boosting the earnings outlook for Asia’s exporters.

Fanuc Corp. (6954), a maker of factory robots that gets 75 percent of its sales outside of Japan, rose 3 percent in Tokyo. Mitsubishi Corp. (8058), Japan’s biggest commodities trader by revenue, rose 2.2 percent after raw materials and metals prices increased. Canon Inc. (7751) climbed 1.6 percent after the Nikkei newspaper reported the camera maker may pay a 120 yen dividend this year.

“America is holding up amid concern Europe’s problems would drag the world down,” said Koichi Kurose, chief economist in Tokyo at Resona Bank Ltd., which oversees the equivalent of $68 billion. “The U.S. economy will need policy backing to stand its ground. Moves in equities will be limited this week before investors start seeking a trend in the next year.”

The MSCI Asia Pacific Index (CRY) gained 0.4 percent to 114.1 as of 9:20 a.m. in Tokyo. The measure added 1.1 percent last week.

The gauge has tumbled 17 percent this year amid concern Europe’s debt crisis will slow global economic growth. Stocks (MXAP) in the index were valued at 12.7 times estimated earnings on average as of Dec. 23, compared with 12.8 times for the S&P 500 and 10.5 times for the Stoxx Europe 600 index, according to data compiled by Bloomberg.

Japan, South Korea

Japan’s Nikkei 225 Stock Average rose 1.3 percent today after a public holiday on Dec. 23. South Korea’s Kospi Index fell 0.2 percent as a private group traveled to North Korea to express their condolences over the death of Kim Jong Il.

Vietnam’s VN Index, the benchmark measure of the Ho Chi Minh City Stock Exchange may be active after the government said the finance ministry will work with the central bank on measures to boost the domestic stock market next year.

Markets in Hong Kong, Australia and Singapore are shut today.

Futures on the Standard & Poor’s 500 Index (SPXL1) rose 0.9 percent today. The index added 0.9 percent in New York on Dec. 23. as orders for durable goods rose in November by the most in four months and sales of new U.S. homes advanced last month to a seven-month high.

Exporters to the U.S. advanced. Fanuc added 3 percent to 11,790 yen. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, rose 1.5 percent to 1,392 yen.

Mitsubishi Corp. climbed 2.2 percent to 1,547 yen after the Thomson Reuters/Jefferies CRB Index of raw materials added 0.1 percent on Dec. 23. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum rose 0.7 percent.

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