Oct. 23 (Bloomberg) -- Asian stocks advanced as Kia Motors Corp. reported record profit and Wesfarmers Ltd. said first- quarter sales rose the most in two years, boosting speculation the global economic recovery is gathering pace.
Kia, South Korea’s second-largest automaker, gained 5.8 percent in Seoul, and Hyundai Motor Co., the biggest, added 4.9 percent after saying yesterday that earnings tripled. Wesfarmers, Australia’s No. 2 retailer, surged 7.5 percent in Sydney. Daiwa House Industry Co. and Tokyu Land Corp. climbed at least 4 percent in Tokyo after earnings increased faster than forecast.
The MSCI Asia Pacific Index increased 0.9 percent to 120.30 as of 12:50 p.m. in Tokyo, with more than twice as many shares advancing as retreating. The gauge, which has risen 0.6 percent this week, has climbed 70 percent from a five-year low on March 9 on signs the global economy is recovering from its worst slump since World War II.
“First-half profits look likely to exceed expectations, however I’m not confident that demand is there to support earnings in the second half,” said Hiroyasu Ito, a Tokyo-based fund manager at Dai-Ichi Mutual Life Insurance Co., which holds $296 billion of assets. “The momentum behind stocks is still good, even though shares aren’t really cheap.”
Japan’s Nikkei 225 Stock Average advanced 0.6 percent, with Kirin Holdings Co. adding 3.9 percent after Morgan Stanley boosted the stock to “overweight.” Australia’s S&P/ASX 200 Index gained 0.9 percent. Benchmark indexes rose in all Asian markets open for trading, except Vietnam.
U.S. Stocks Rise
Cnooc Ltd., China’s largest offshore oil producer, added 4.4 percent in Hong Kong after an adviser to China’s central bank proposed continuing economic stimulus measures.
Futures on the Standard & Poor’s 500 Index advanced 0.2 percent. The U.S. benchmark gauge jumped 1.1 percent in New York yesterday, led by insurers and banks as quarterly profit at insurer Travelers Cos. quadrupled and banks including PNC Financial Services and Fifth Third Bancorp said lending was becoming more profitable as they paid less on deposits.
In the past five days, the MSCI Asia Pacific Index has advanced 0.01 percent, set for a third weekly gain. Signs corporate earnings were improving prompted investors to shift to higher-yielding assets, spurring Treasuries to fall. The yield on the benchmark 10-year note rose two basis points to 3.43 percent, according to data compiled by Bloomberg.
The MSCI Asia Pacific Index has climbed 33 percent this year, headed for its biggest annual increase since 2003. Stocks in the gauge are valued at 1.6 times book value, compared with 2.3 times for the S&P 500 and 1.7 times for Europe’s Dow Jones Stoxx 600 Index.
Korean Carmakers, Wesfarmers
Kia jumped 5.8 percent to 18,150 won. Net income totaled 402 billion won ($340 million) in the three months to Sept. 30, compared with a loss a year earlier, the company said today.
Hyundai Motor added 5.3 percent to 108,500 won after Morgan Stanley and Deutsche Bank AG lifted their estimates for the shares. The carmaker said yesterday that third-quarter profit more than tripled, helped by the weaker won and surging sales in the U.S. and China.
Wesfarmers surged 7.5 percent to A$28.43. Food and liquor sales rose 7.3 percent in the three months through Sept. 27 as the company attracted customers to redesigned fresh-produce sections at its Coles supermarkets, Wesfarmers said.
Daiwa House gained 4.3 percent to 1,010 yen, and Tokyu Land, which develops houses and condominiums, added 4.1 percent to 408 yen. First-half profit was probably more than twice its forecast, Daiwa House said in a preliminary earnings report yesterday. Tokyu Land probably produced net income that’s 31 percent more than its target, according to the company’s preliminary report.
Drinks, Oil
Kirin, Japan’s largest beverage maker, rose 3.9 percent to 1,456 yen. Morgan Stanley boosted its investment rating on the stock from “equal weight,” citing “solid” sales.
Cnooc added 5.1 percent to HK$12.86, the sharpest gain on Hong Kong’s Hang Seng Index. Bank of Communications Co. rose 2.8 percent to HK$10.40.
China’s government should keep fiscal-stimulus spending intact for another year to allow for a “full recovery in 2011,” Fan Gang, an adviser to the central bank, said in an interview in Toronto, where he’s attending a Canada China Business Council event.
Kia, South Korea’s second-largest automaker, gained 5.8 percent in Seoul, and Hyundai Motor Co., the biggest, added 4.9 percent after saying yesterday that earnings tripled. Wesfarmers, Australia’s No. 2 retailer, surged 7.5 percent in Sydney. Daiwa House Industry Co. and Tokyu Land Corp. climbed at least 4 percent in Tokyo after earnings increased faster than forecast.
The MSCI Asia Pacific Index increased 0.9 percent to 120.30 as of 12:50 p.m. in Tokyo, with more than twice as many shares advancing as retreating. The gauge, which has risen 0.6 percent this week, has climbed 70 percent from a five-year low on March 9 on signs the global economy is recovering from its worst slump since World War II.
“First-half profits look likely to exceed expectations, however I’m not confident that demand is there to support earnings in the second half,” said Hiroyasu Ito, a Tokyo-based fund manager at Dai-Ichi Mutual Life Insurance Co., which holds $296 billion of assets. “The momentum behind stocks is still good, even though shares aren’t really cheap.”
Japan’s Nikkei 225 Stock Average advanced 0.6 percent, with Kirin Holdings Co. adding 3.9 percent after Morgan Stanley boosted the stock to “overweight.” Australia’s S&P/ASX 200 Index gained 0.9 percent. Benchmark indexes rose in all Asian markets open for trading, except Vietnam.
U.S. Stocks Rise
Cnooc Ltd., China’s largest offshore oil producer, added 4.4 percent in Hong Kong after an adviser to China’s central bank proposed continuing economic stimulus measures.
Futures on the Standard & Poor’s 500 Index advanced 0.2 percent. The U.S. benchmark gauge jumped 1.1 percent in New York yesterday, led by insurers and banks as quarterly profit at insurer Travelers Cos. quadrupled and banks including PNC Financial Services and Fifth Third Bancorp said lending was becoming more profitable as they paid less on deposits.
In the past five days, the MSCI Asia Pacific Index has advanced 0.01 percent, set for a third weekly gain. Signs corporate earnings were improving prompted investors to shift to higher-yielding assets, spurring Treasuries to fall. The yield on the benchmark 10-year note rose two basis points to 3.43 percent, according to data compiled by Bloomberg.
The MSCI Asia Pacific Index has climbed 33 percent this year, headed for its biggest annual increase since 2003. Stocks in the gauge are valued at 1.6 times book value, compared with 2.3 times for the S&P 500 and 1.7 times for Europe’s Dow Jones Stoxx 600 Index.
Korean Carmakers, Wesfarmers
Kia jumped 5.8 percent to 18,150 won. Net income totaled 402 billion won ($340 million) in the three months to Sept. 30, compared with a loss a year earlier, the company said today.
Hyundai Motor added 5.3 percent to 108,500 won after Morgan Stanley and Deutsche Bank AG lifted their estimates for the shares. The carmaker said yesterday that third-quarter profit more than tripled, helped by the weaker won and surging sales in the U.S. and China.
Wesfarmers surged 7.5 percent to A$28.43. Food and liquor sales rose 7.3 percent in the three months through Sept. 27 as the company attracted customers to redesigned fresh-produce sections at its Coles supermarkets, Wesfarmers said.
Daiwa House gained 4.3 percent to 1,010 yen, and Tokyu Land, which develops houses and condominiums, added 4.1 percent to 408 yen. First-half profit was probably more than twice its forecast, Daiwa House said in a preliminary earnings report yesterday. Tokyu Land probably produced net income that’s 31 percent more than its target, according to the company’s preliminary report.
Drinks, Oil
Kirin, Japan’s largest beverage maker, rose 3.9 percent to 1,456 yen. Morgan Stanley boosted its investment rating on the stock from “equal weight,” citing “solid” sales.
Cnooc added 5.1 percent to HK$12.86, the sharpest gain on Hong Kong’s Hang Seng Index. Bank of Communications Co. rose 2.8 percent to HK$10.40.
China’s government should keep fiscal-stimulus spending intact for another year to allow for a “full recovery in 2011,” Fan Gang, an adviser to the central bank, said in an interview in Toronto, where he’s attending a Canada China Business Council event.
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