Asian Stocks Rise as Intel Sales Estimate Bolsters Confidence in Recovery
April 14 (Bloomberg) -- Stacy Smith, chief financial officer at Intel Corp., talks with Bloomberg's Susan Li about demand for personal computers. The world’s biggest chipmaker forecast second-quarter sales that topped analysts’ predictions, citing growing worldwide demand. Speaking from Santa Clara, California, Smith also discusses Apple's iPad, partnerships and China's currency policy. (Source: Bloomberg)
Asian stocks rose for the third time in four days after Intel Corp.’s sales estimate beat predictions, Moody’s Investors Service boosted South Korea’s credit rating and Singapore raised its economic growth forecast.
Samsung Electronics Co., the world’s biggest chipmaker after Intel, gained 2.1 percent in Seoul. Tokyo Electron Ltd. advanced 3.6 percent in Tokyo after the company said orders rose. DBS Group Holdings Ltd., Southeast Asia’s biggest bank, climbed 4.6 percent in Singapore. Commonwealth Bank of Australia climbed 2 percent after a report showed the country’s consumer confidence held close to its highest level in almost three years.
“Companies are demonstrating that economic conditions are improving, while the data is still pointing to an ongoing theme of recovery,” said Prasad Patkar, who helps oversee about $1.9 billion at Platypus Asset Management in Sydney. “You now need to watch the underlying performance of the global economy once all the stimulus has washed through.”
The MSCI Asia Pacific Index gained 0.7 percent to 128.30 as of 7:48 p.m. in Tokyo. The gauge has climbed 12 percent from this year’s low on Feb. 8, as improving economic data boosted the outlook for the global economy and concern over European budget deficits eased. Stocks in the index trade at 16.4 times estimated earnings, compared with 15 times for the MSCI World Index of 23 developed nations.
Singapore’s Straits Times Index increased 1.6 percent. The gauge closed above the 3,000 level for the first time in almost two years as the central bank said it will revalue the currency, joining regional counterparts in tightening monetary policy to control inflation. South Korea’s Kospi Index climbed 1.5 percent.
Higher Than Estimated
Japan’s Nikkei 225 Stock Average advanced 0.4 percent. Australia’s S&P/ASX 200 Index rose 0.9 percent. New Zealand’s NZX 50 Index climbed 0.8 percent in Wellington even as the statistics office reported an unexpected decline in February retail sales.
Futures on the Standard & Poor’s 500 Index increased 0.2 percent. The gauge rose 0.1 percent yesterday to the highest close since September 2008, as Fastenal Co.’s profit topped analysts’ estimates. Intel said after U.S. markets closed second-quarter sales will be about $10.2 billion. Analysts in a Bloomberg survey had estimated $9.72 billion on average.
Samsung climbed 2.1 percent to 845,000 won, while Tokyo Electron, the world’s second-largest maker of semiconductor equipment, jumped 3.6 percent to 6,590 yen. Tokyo Electron, which provides Intel with equipment, said orders for machines that make semiconductors and flat-panel displays rose last quarter to the highest level in two years.
Semiconductor Companies
Unisem Bhd. and Malaysian Pacific Industries Bhd., two of Malaysia’s biggest listed semiconductor companies, advanced more than 2 percent. Unisem rose 2.7 percent to 3.08 ringgit. Malaysian Pacific gained 2.6 percent to 7.20 ringgit.
Intel Corp. posted first-quarter profit of 43 cents per share, compared with estimates for 38 cents a share, and said profit was boosted by sales of high-end computer chips.
“The continuing recovery in the global economy and company earnings is supporting the market,” said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd., which manages about $54 billion.
Singaporean stocks climbed after the trade ministry said gross domestic product will increase by as much as 9 percent in 2010, compared with a previous prediction for growth of as much as 6.5 percent.
Highest Rating
DBS rose 4.6 percent to S$15.50. Neptune Orient Lines Ltd., Singapore’s largest container line, surged 8 percent to S$2.30, the MSCI Asia Pacific Index’s biggest gain today. Singapore Press Holdings Ltd., the No. 1 newspaper publisher in the city- state, advanced 1 percent to S$3.97 after saying second-quarter profit increased.
In Seoul, Industrial Bank of Korea, the country’s biggest lender to small- and mid-sized companies, jumped 6.2 percent to 15,450 won on optimism funding costs will decline after Moody’s gave the nation its highest-ever credit rating. Woori Finance Holdings Co. climbed 3.8 percent to 17,800 won.
South Korea’s credit ratings were raised to A1 from A2 by Moody’s, which cited accelerating economic growth and a “relatively small” deficit. Figures from Statistics Korea separately showed the country’s unemployment rate fell in March by the most in more than a decade.
“Investors cheered the rating change news,” said Kim Young Joon, head of equities at NH-CA Asset Management in Seoul, which manages about $9.9 billion in assets. “Overall confidence in Korean companies will improve, and their overseas funding costs will decline, which are definitely good news.”
Australian Banks
Shinhan Financial Group Co. advanced 3.1 percent to 49,000 won after the Korea Economic Daily cited an unnamed company official as saying that the firm may post a 600 billion won ($538 million) net profit in the first quarter.
In Sydney, Commonwealth Bank of Australia, the nation’s biggest lender, rose 2 percent to A$59.22. National Australia Bank Ltd., the third-largest, advanced 1.4 percent to A$27.93. David Jones Ltd., the nation’s second-biggest department store, gained 2.4 percent to A$4.68.
Australian consumer confidence held close to its highest level in almost three years, according to a Westpac Banking Corp. and Melbourne Institute survey of 1,200 consumers released today.
“The global economy is steadily recovering,” said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. “Investors will promptly buy shares when markets fall, on the backdrop of a rising trend overall.” The MSCI Asia Pacific Index dropped 0.6 percent yesterday.
Greek Rescue
According to separate reports this month, Chinese manufacturing expanded at a faster pace in March, South Korean exports increased in March, and a gauge of U.S. service industries rose at the fastest pace in more than three years.
The MSCI World Index gained 0.4 percent today, set to close at the highest level since September 2008. Stocks also rallied this week after European governments agreed to offer Greece a rescue package worth as much as 45 billion euros ($61 billion) to avert the threat of a default.
Telstra Corp., Australia’s largest phone company, rose 3.5 percent to NZ$4.18 in Wellington on speculation the company reached an agreement to sell its fixed-line assets to the Australian government’s national broadband network. The company may have been offered A$9.75 billion ($9.1 billion) by the government’s NBN Co., the Australian newspaper said.
The company said rumors it had completed talks to sell the assets were “unfounded” and that negotiations “remain incomplete and confidential.” Telstra shares in Sydney sank 0.3 percent to A$3.18.
To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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