By Jonathan Burgos - Jan 3, 2012 8:45 AM GMT+0700
Jan. 3 (Bloomberg) -- Sean Fenton, a portfolio manager at Tribeca Investment Partners in Sydney, talks about Australia's economy, stock market, and central bank monetary policy. Australian manufacturing expanded for the first time in six months in December, driven by gains in basic metals, transport and publishing, a private survey showed. Fenton speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
Asian stocks (MXAPJ) rose as manufacturing growth from Australia, China and India added to optimism the region’s economies will withstand Europe’s unresolved sovereign- debt crisis.
Samsung Electronics Co., a South Korean exporter of consumer electronics that counts China as its biggest market, climbed 1.8 percent in Seoul. BHP Billiton Ltd. (BHP), the world’s largest mining company that receives 28 percent of sales from China, increased 1.7 percent in Sydney. Industrial & Commercial Bank of China Ltd., the world’s NO. 1 lender by market value, advanced 1.5 percent as trading in Hong Kong resumed.
“Positive economic data provide a catalyst for a small new-year rally,” said Pauline Dan, Hong Kong-based chief investment officer at Samsung Asset Management, which oversees about $72 billion. “We’ll probably see more headwinds from Europe as large amounts of debt from countries such as Italy are due for refinancing.”
The MSCI Asia Pacific Excluding Japan Index (MXAPJ) gained 1.3 percent to 397.22 as of 9:43 a.m. in Hong Kong, poised for its biggest advance since Dec. 21. About seven stocks rose for each that fell in the gauge. The measure posted its first annual decline in three years in 2011 as China took steps to cool its property market and Europe struggled to resolve its debt crisis.
Australia’s S&P/ASX 200 Index (AS51) rose 1.1 percent, while South Korea’s Kospi Index climbed 2 percent. Singapore’s Straits Times Index rose 0.6 percent even as the city-state’s economy shrank for the second time in three quarters.
Hong Kong’s Hang Seng Index advanced 1.6 percent. Japanese and Chinese markets are closed today for a holiday.
U.S. Hiring
The Standard & Poor’s 500 Index (SPX) slipped 0.4 percent on Dec. 30 as concern over Europe’s debt crisis overshadowed optimism that the U.S. economy will expand in 2012. Hiring probably accelerated in December for a second month, a sign an improving U.S. labor market will bolster consumer spending in early 2012, economists said before a report on Jan. 6.
Manufacturing in India and China improved in December, while Australian output expanded for the first time in six months, separate surveys showed. Data due out today may show production in American factories climbed to a six-month high in December, according to economists surveyed by Bloomberg News.
The MSCI Asia Pacific Index (MXAP), which includes Japan, lost about $1.5 trillion in 2011 amid concern Europe’s debt crisis will drag the global economy into recession. Stocks on Asia’s benchmark index were valued at 12.6 times estimated earnings on average, compared with 12.7 times for Standard & Poor’s 500 Index and 9.9 times for the Stoxx Europe 600 Index.
To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
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