Asian Stocks Advance on Profits, Forecasts; Honda, Hitachi Rise
Asian Stocks Advance on Earnings Outlook
Tomohiro Ohsumi/Bloomberg
The MSCI Asia Pacific Index rose 0.6 percent to 119.82 as of 9:22 a.m. in Tokyo, with four stocks advancing for each one that declined.
The MSCI Asia Pacific Index rose 0.6 percent to 119.82 as of 9:22 a.m. in Tokyo, with four stocks advancing for each one that declined. Photographer: Tomohiro Ohsumi/Bloomberg
Aug. 2 (Bloomberg) -- Sean Darby, chief Asian equity strategist at Nomura Holdings Inc. in Hong Kong, speaks with Bloomberg's Rishaad Salamat about China's stock market and economy. China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. Darby also discusses China's currency policy. (Source: Bloomberg)
July 29 (Bloomberg) -- Michael Kurtz, head of China research at Macquarie Group Ltd., talks with Bloomberg's Haslinda Amin about his investment strategy for China stocks. Kurtz, speaking in Hong Kong, also discusses the outlook for China's economy, central bank monetary policy and real estate market. (Source: Bloomberg)
Asian stocks rose, extending four consecutive weekly gains, as companies from Honda Motor Co. to Hyundai Mobis Co. reported higher earnings or forecasts.
Honda, Japan’s second-largest automaker, and Hitachi Ltd. climbed at least 4 percent in Tokyo after boosting forecasts. Hyundai Mobis, South Korea’s largest auto-parts maker, jumped 8.6 percent in Seoul after profit rose. China Resources Land Ltd. led Hong Kong developers higher on optimism China will ease steps to limit gains in property prices. Toyota Motor Corp., which gets more than one-fourth of its sales in North America, increased 1.8 percent after U.S. consumer confidence gained.
“Positive earnings are easing investor concerns about the global economy,” said Naoki Fujiwara, a fund manager in Tokyo who helps oversee about $5.8 billion at Shinkin Asset Management Co. “While uncertainties linger, investors don’t have to be fearful of current conditions.”
The MSCI Asia Pacific Index rose 1.2 percent to 120.48 as of 7:25 p.m. in Tokyo, with more than twice as many stocks advancing as declining. The gauge, which climbed 5.6 percent in July, is headed to its highest level since May 13. It lost 6.7 percent from its high this year on April 15 on concern Europe’s debt crisis and China’s steps to curb property prices will slow global economic growth.
Japan’s Nikkei 225 Stock Average rose 0.4 percent, paring an earlier gain of as much as 1.5 percent. Hong Kong’s Hang Seng Index gained 1.8 percent, and South Korea’s Kospi Index increased 1.3 percent. Australia’s S&P/ASX 200 Index rose 1.1 percent, as a survey released in Canberra showed manufacturing growth accelerated. Taiwan’s Taiex index climbed 2 percent.
Pakistan, Indonesia Fall
Pakistan’s Karachi Stock Exchange 100 Index dropped 1.4 percent, the most among the three benchmark Asia-Pacific indexes that fell, after the nation’s central bank unexpectedly increased its benchmark interest rate to help combat inflation. Indonesia’s main index slumped 0.3 percent after a report showed the fastest pace of inflation in 15 months. Vietnam’s also fell.
Futures on the U.S. Standard & Poor’s 500 Index advanced 1.1 percent. The gauge was little changed on July 30 after reports showed higher-than-estimated consumer confidence and business activity, and slower-than-estimated economic growth.
The Australian Industry Group and PricewaterhouseCoopers said today their index of manufacturing performance rose 1.5 points to 54.4 in July, the seventh straight month of expansion.
Toyota, the world’s largest carmaker, gained 1.8 percent to 3,105 yen in Tokyo. Honda climbed 4 percent to 2,818 yen after raising its full-year profit forecast by 34 percent as vehicle demand in the U.S. and Asia recovered from a global recession.
Forecasts, Profits
Hitachi, Japan’s third-biggest company by sales, increased 4.3 percent to 367 yen after boosting its forecast for first- half profit by 82 percent. The maker of electronics and heavy machinery also reported first-quarter net income, reversing a net loss a year earlier.
Fujifilm Holdings Corp. climbed 1.8 percent to 2,748 yen after the world’s biggest maker of film used in liquid-crystal- display panels said first-quarter net income was 17.8 billion yen ($206 million), compared with a loss a year earlier. Kawasaki Heavy Industries Ltd., Japan’s third-largest maker of heavy machinery, rallied 6.5 percent to 230 yen after returning to a profit in the first quarter.
In Seoul, Hyundai Mobis jumped 8.6 percent to 222,000 won. Profit soared 60 percent in the second quarter after Hyundai Motor Co. and Kia Motors Corp., its biggest clients, boosted vehicle sales.
July 30 was the peak day for April-June earnings reports by companies in the Asia-Pacific region. More than half of those that have announced results have exceeded analysts’ estimates, Bloomberg data show.
U.S. Consumer Confidence
“Earnings are in good shape, and we are seeing upward revisions to forecasts,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo.
Consumer and energy stocks rose the most among the 10 industry groups in the MSCI Asia Pacific Index as the U.S. consumer confidence report boosted optimism in a recovery, following data last month that fueled concern the world’s biggest economy is stalling.
Sales at U.S. retailers fell in June for a second month, the Commerce Department said on July 14, while the Conference Board said July 27 that its index of consumer confidence fell in July from June. Separately, Japan’s statistics bureau reported last week that unemployment rose to a seven-month high.
Speculation global growth may falter has dragged the MSCI Asia Pacific Index down as much as 9.6 percent this year. Companies in the gauge trade at 14.3 times estimated earnings on average, compared with 13.7 times on July 2, the lowest level since December 2008.
Chinese Developers
China Resources Land, a state-controlled developer, gained 4.1 percent to HK$17.16 in Hong Kong after China’s manufacturing grew at the slowest pace in 17 months, raising the prospect of an end to further tightening measures.
Guangzhou R&F Properties Co., the biggest real-estate company in the southern Chinese city, advanced 4.8 percent to HK$12.74. Sun Hung Kai Properties Ltd., Hong Kong’s biggest developer by market value, climbed 2 percent to HK$116.40. Separately Hong Kong home prices rose for a fifth consecutive week, according to Centaline Property Agency Ltd., one of the city’s biggest property agencies.
Also in Hong Kong, Zijin Mining Group Co., China’s biggest gold producer, advanced 2.6 percent to HK$5.14. Gold futures advanced for the fourth day as China’s manufacturing data triggered concern among some investors that global growth may slow, boosting investor demand for the precious metal as a haven.
Gold, Deals
Newcrest Mining Ltd., Australia’s largest gold producer, gained 2.8 percent to A$33.62 in Sydney, and rival St. Barbara Ltd. added 1.7 percent to 30.5 Australian cents.
Linc Energy Ltd., an Australian energy company seeking to sell coal projects, surged 19 percent to A$1.89 after saying it remains in talks with companies including Adani Enterprises Ltd. about the sale.
Bow Energy Ltd. climbed 5.4 percent to A$1.36 after saying it’s discussing potential transactions with Liquefied Natural Gas Ltd., developer of a proposed $1.3 billion Fisherman’s Landing project in Australia’s Queensland state.
Chinese energy companies rose after a large coal field was found in northeastern China. China Shenhua Energy Co. increased 3.2 percent to HK$30.85 in Hong Kong and China Coal Energy Co. 4.2 percent to HK$11.30 in Hong Kong, pacing gains among Chinese coal producers.
In Kuala Lumpur, Tanjong Plc, owner of Malaysia’s third- largest power producer, jumped 18 percent to 21.14 ringgit, the biggest increase in the MSCI Asia Pacific Index. A group led by billionaire T. Ananda Krishnan offered 4.7 billion ringgit ($1.5 billion) in the second-biggest buyout offer for a Malaysian company this year.
To contact the reporter for this story: Shani Raja in Sydney at sraja4@bloomberg.net; Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net.
Rate this Page