Asian Stocks, Currencies Climb on Intel Sales, Singapore Growth
All 10 industries in the S&P 500 advanced as Alcoa’s earnings topped estimates and the company forecast global aluminum consumption will grow 12 percent this year. Photographer: Jay Paul/Bloomberg
July 14 (Bloomberg) -- Intel Corp. Chief Financial Officer Stacy Smith talks with Bloomberg's Susan Li from Santa Clara, California, about the outlook for sales. Intel, the world's biggest chipmaker, reported record second-quarter sales and topped analysts' estimates with its forecast for this period, allaying concern that a rebound in technology spending is losing steam. Smith also discusses the company's investments in China. (Source: Bloomberg)
July 13 (Bloomberg) -- Bloomberg's Courtney Donohoe reports on the performance of the U.S. equity market today. U.S. and European stocks climbed for a sixth day, commodities rallied and Treasuries extended their longest losing streak in 11 months as Alcoa Inc.’s forecast of growing global demand and Greece’s sale of debt bolstered optimism in the economic outlook. Bloomberg's Pimm Fox also speaks. (Source: Bloomberg)
July 13 (Bloomberg) -- Scott Black, president of Delphi Management Inc., discusses the U.S. stock market. (This report is an excerpt. Source: Bloomberg)
July 13 (Bloomberg) -- Howard Silverblatt, senior index analyst at Standard & Poor’s, discusses the outlook for corporate earnings and dividends. Silverblatt speaks with Jon Erlichman on Bloomberg Television’s “In the Loop With Betty Liu.” (Source: Bloomberg)
July 13 (Bloomberg) -- Charles Bradford, a partner at Affiliated Research Group LLC, talks about aluminum prices and the outlook for Alcoa Inc. Alcoa, the largest U.S. aluminum producer, said yesterday second-quarter earnings from continuing operations were 13 cents a share, exceeding analysts' estimates. Bradford talks with Deirdre Bolton on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
July 13 (Bloomberg) -- Brian Belski, chief investment strategist at Oppenheimer & Co., talks with Bloomberg's Lori Rothman about his investment strategy in U.S. stocks. (Source: Bloomberg)
Asian stocks rose, pushing the region’s benchmark index to a three-week high, and currencies climbed after Intel Corp. reported record second-quarter sales and Singapore raised its 2010 economic growth forecast.
The MSCI Asia-Pacific Index gained 1.1 percent to 117.36 as of 10:20 a.m. in Tokyo, reaching the highest level since June 22. Futures on the Standard & Poor’s 500 Index advanced 0.7 percent. The Korean won strengthened 1.1 percent to 1,208.30 per dollar, snapping a two-day drop.
Singapore said its economy will grow between 13 percent and 15 percent this year, adding to optimism in the world’s recovery after Greece sold bonds at a rate below what the country pays for European aid. Intel, the world’s biggest chipmaker, said third-quarter sales will be $11.6 billion, exceeding analyst estimates of $10.9 billion in a Bloomberg survey.
“The positive outlook for earnings is easing investors’ perception of risk,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6 billion. “Economic growth needs to become sustainable. We are looking for strong economic data from the U.S.”
Japan’s Nikkei 225 Stock Average surged 2.5 percent, set to close at the highest since June 24. South Korea’s Kospi jumped 1.3 percent. Australia’s S&P/ASX 200 Index climbed 1.3 percent. A gauge of technology stocks in the MSCI Asia Pacific Index rallied 2 percent, the most of 10 industry groups.
Semiconductor Stocks
Samsung Electronics Co., Asia’s biggest semiconductor maker, rose 2.6 percent to 817,000 won, while Hynix Semiconductor Inc. gained 2.6 percent to 25,550 won. Advantest Corp., the world’s largest maker of chip-testing equipment, leapt 5.9 percent to 2,018 yen.
Intel shares climbed 7 percent to $22.49 in extended trading. Profits for S&P 500 companies are projected to have increased 34 percent in the April-June period, according to analysts’ estimates compiled by Bloomberg. The period is forecast to mark a third straight quarter of increasing profits following a record nine-quarter slump, according to data compiled by Bloomberg. U.S. retail sales and consumer confidence data is due today.
“It’s hugely significant that Intel, which represents high-tech companies, should report stronger than estimated results,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
In Tokyo, Komatsu Ltd., the world’s second-largest maker of construction equipment, rallied 5.5 percent to 1,785 yen after raising its first-half net income forecast by 41 percent to 52 billion yen on rising demand from Asia and Latin America.
Commodity Rally
Commodity companies climbed as copper futures in New York rose 0.4 percent in after-hours trading. The London Metal Exchange Index, a measure of six metals including copper and zinc, gained 1.1 percent yesterday, while crude oil futures jumped 2.9 percent.
BHP Billiton Ltd., the world’s largest mining company and Australia’s largest oil producer, increased 1.4 percent to A$38.15 in Sydney, while Rio Tinto Group, the world’s third- biggest mining company advanced 1 percent to A$67.20.
The euro gained 0.1 percent to 112.97 yen and the British pound climbed 0.2 percent to $1.5208. The Greek government sold 1.625 billion euros ($2.05 billion) of 26-week Treasury bills at a yield of 4.65 percent.
The Singapore dollar climbed 0.5 percent to S$1.3737 per dollar after the city raised its economic forecast from as much as 9 percent. The Malaysian ringgit rose 0.5 percent to 3.1895
“There is improved risk appetite driving stocks and currencies in the region,” said Hasdi Mamat, a foreign-exchange trader at Bank Muamalat Malaysia Bhd. in Kuala Lumpur.
To contact the reporters on this story: Lisa Pham in Sydney on lpham14@bloomberg.net; Shani Raja in Sydney on sraja4@bloomberg.net; Frances Yoon in Seoul at fyoon2@bloomberg.net.
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