Australia Stocks Rise on Commodities; Japan Futures Fall on Yen

Nov. 26 (Bloomberg) -- Australian stocks advanced after commodity prices rose, while Japanese futures retreated as the dollar traded close to a 14-year low against the yen.

BHP Billiton Ltd., the world’s biggest mining company, gained 1.1 percent in Sydney. New York-traded securities of Honda Motor Co., a carmaker that gets 47 percent of its sales in North America, lost 0.7 percent from the Tokyo close. Sony Corp., the maker of the PlayStation 3 game machine, fell 0.6 percent.

“The improved economic climate is bolstering demand for commodities,” said Mitsushige Akino, who oversees the equivalent of $450 million in Tokyo at Ichiyoshi Investment Management Co. “The strong yen will curb a further rebound in corporate earnings and weigh on investor sentiment.”

Australia’s S&P/ASX 200 Index rose 0.2 percent to 4,731.30 as of 10:01 a.m. in Sydney. New Zealand’s NZX 50 Index added 0.2 percent in Wellington.

Futures on Japan’s Nikkei 225 Stock Average expiring in December closed at 9,400 in Chicago yesterday, 0.5 percent lower than 9,450 in Osaka.

The MSCI Asia Pacific Index has gained 32 percent this year, more than the 23 percent increase for the Standard & Poor’s 500 Index. Shares in the Asian gauge trade at 1.53 times corporate net worth, rising from this year’s low of 1.03 times on March 9, according to data compiled by Bloomberg.

The dollar depreciated to as low as 87.21 against the yen, a level not seen since Jan. 21. On that day, it sank to 87.13, the lowest since July 1995. A weaker dollar reduces the value of overseas sales at Japanese companies when converted into their home currency.

Dollar, Commodities

Prices for oil and metals advanced after the dollar depreciated, boosting the appeal of commodities as an alternative investment. Crude oil for January delivery rose 2.6 percent to $77.96 a barrel in New York yesterday, the highest settlement since Nov. 18. Gold climbed as much as 0.1 percent to a record $1,192.80 an ounce.

In New York yesterday, the S&P 500 added 0.5 percent. Government reports showed sales of new homes rose last month to the highest level in 13 months, while the number of Americans filing claims for jobless benefits fell last week to the lowest since September 2008. Another report showed spending by U.S. consumers increased more in October than economists had projected.

Hanjin Shipping Co., South Korea’s largest shipping line, and its partners will cut capacity on Asia-North America routes from the end of the month as demand enters a traditionally slow season. The container lines will pare U.S. west coast capacity by 10 percent and east coast capacity by 20 percent, the Korean shipping line said in an e-mailed statement.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.