Asian Stocks Rise to Four-Week High as U.S. Jobs Data Eases Growth Concern
Sept. 6 (Bloomberg) -- Mark Konyn, chief executive officer of RCM Asia Pacific Ltd., talks about the outlook for China's stock market and economy. Asian stocks rose, driving the MSCI Asia Pacific Index higher for the fourth consecutive day, as better-than-estimated jobs data in the U.S. eased concern that global economic growth is faltering. Konyn also discusses emerging market stocks and the Hong Kong dollar's peg to the U.S. He speaks with Rishaad Salamat on Bloomberg Television. (Source: Bloomberg)
Sept. 6 (Bloomberg) -- Rhett Kessler, who helps manage about $1 billion at Pengana Capital Ltd. in Sydney, talks about his investment strategy for Australian stocks. Kessler also discusses the outlook for Reserve Bank of Australia monetary policy and the U.S. economy. He speaks with Susan Li on Bloomberg Television. (Source: Bloomberg)
Sept. 6 (Bloomberg) -- Julia Lee, an analyst at Bell Direct, an Australian online brokerage, talks about the outlook for Australian stocks and the country's economy. Asian stocks rose, driving the MSCI Asia Pacific Index to the highest level in four weeks, as better-than-estimated jobs data in the U.S. eased concern global economic growth is faltering. Australia’s S&P/ASX 200 Index rose 0.8 percent to 4,575.50 at the 4:10 p.m. close of trading in Sydney. Lee talks with Mark Barton on Bloomberg Television's "Global Connection." (Source: Bloomberg)
Asian stocks rose, driving the MSCI Asia Pacific Index to a four-week high, as better-than-estimated jobs data fueled confidence the U.S. economy will skirt a recession.
Samsung Electronics Co., which gets a fifth of its sales in America, gained 2.5 percent in Seoul. Canon Inc., a camera maker that makes 28 percent of its revenue in the Americas, increased 1.6 percent in Tokyo. Elpida Memory Inc. jumped 9.5 percent in Tokyo after Mitsubishi UFJ Morgan Stanley Securities Co. rated the stock “strong outperform” in new coverage. BHP Billiton Ltd., the world’s largest mining company, advanced 1.9 percent on speculation economic growth will boost metals demand.
The MSCI Asia Pacific Index gained 1.6 percent to 121.86 as of 7:20 p.m. in Tokyo, the highest level since Aug. 9. The gauge climbed 2.7 percent last week as reports on Chinese and U.S. manufacturing beat economist estimates. Concerns about global growth dragged the index down by 2.2 percent in August.
“The jobs data put the brakes on pessimism that the global economy is moving into a recession,” said Yoji Takeda, who helps manage about $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong. “The market’s mood is improving. Some investors are becoming more bullish.”
Japan’s Nikkei 225 Stock Average climbed 2.1 percent, while Australia’s S&P/ASX 200 Index gained 0.8 percent. New Zealand’s NZX 50 Index increased 1.2 percent, led by building-related companies on speculation work tied to the clean-up of an earthquake at the weekend will boost profits.
Jobs Data
Hong Kong’s Hang Seng Index rose 1.8 percent, led by developers after the government announced a land sale. China’s Shanghai Composite Index also advanced 1.5 percent, paced by insurers after they were permitted to invest in privately held companies.
Futures on the Standard & Poor’s 500 Index increased 0.1 percent. The gauge gained 1.3 percent on Sept. 3 after a government report showed private payrolls climbed by 67,000 in August, more than the median forecast for an increase of 40,000 in a Bloomberg economist survey.
Samsung Electronics, Asia’s biggest maker of chips, flat screens and mobile phones, added 2.5 percent to 780,000 won after the company said it may invest 30 trillion won ($25.6 billion) next year to expand its business.
Canon advanced 1.6 percent to 3,605 yen in Tokyo. James Hardie Industries SE, the biggest seller of home siding in the U.S., rose 3.2 percent to A$5.56. Esprit Holdings Ltd., a global fashion retailer, advanced 2 percent to HK$41.40 in Hong Kong.
Growth Concerns
“There is a temporary sense of security after the better- than-expected jobs data,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $65 billion. “The market had been too pessimistic about the U.S. economy.”
U.S. President Barack Obama, focusing on ways to spur economic growth, will urge Congress to permanently extend and expand a research and development tax credit for businesses in a speech on Sept. 8, according to two administration officials speaking on condition of anonymity.
Technology and consumer-related companies accounted for 29 percent of the gain in the MSCI Asia Pacific Index, which slumped as much as 5.3 percent from a three-month high on Aug. 6 amid concerns over global growth.
The index’s decline last month followed U.S. reports that showed slower-than-estimated growth in incomes and a record plunge in home sales. Stocks also fell after the yen’s advance to a 15-year high against the U.S. dollar threatened to reduce the value of Japanese export earnings.
U.S. Reports
Stocks on the MSCI gauge are valued at an average 13.8 times estimated earnings, compared with 13.2 times for the S&P 500 Index and 11.7 times for the Stoxx Europe 600 Index.
Elpida jumped 9.5 percent to 1,039 yen. Growing demand for mobile dynamic-random-access memory chips for smart phones and limited supply will “greatly contribute” to Elpida’s operating profit, Mitsubishi UFJ Morgan Stanley analysts Masahiko Ishino and Yoshihito Hasegawa wrote in a report dated Sept. 3. The analysts set their share-price target at 1,500 yen.
Wintek Corp., a component maker for Apple Inc.’s iPad and iPhones, surged 7 percent to NT$49.20 in Taipei after its share- price estimate was raised to NT$52 from NT$35 by Credit Suisse Group AG analysts.
Nanya Technology Corp., Taiwan’s second-largest memory-chip maker, surged 6.8 percent to NT$21.30 after the company said in a stock exchange filing that August sales jumped 44 percent from a year earlier.
Higher Sales
In Sydney, BHP Billiton gained 1.9 percent to A$38.55, while Fortescue Metals Group Ltd. climbed 2.9 percent to A$4.94. Rio Tinto Group, the world’s third-largest mining company, advanced 1.6 percent to A$75. Copper futures in New York rose 0.7 percent in electronic trading, the fourth straight day of gains.
Hong Kong property developers gained after the city’s Lands Department said Sept. 3 that a land auction will take place next month at a site in the Kowloon Tong district. Henderson Land Development Co. climbed 3.5 percent to HK$49.30 and Kerry Properties Ltd. rose 1.5 percent to HK$40.60.
Chinese insurers advanced after the country approved them to hold stakes and invest in property assets of privately held companies to broaden their investment options.
China Life Insurance Co., the nation’s biggest insurer, increased 2.8 percent to 22.81 yuan in Shanghai. China Pacific Insurance (Group) Co., the country’s third-largest insurer, climbed 3.4 percent to 23.96 yuan.
Earthquake Damage
New Zealand stocks rose even after the magnitude 7.0 earthquake in Christchurch, the country’s second-biggest city. The nation faces a NZ$2 billion ($1.4 billion) damage bill, according to government estimates, after the quake cut power, damaged roads, ruptured sewer lines and water pipes and ripped facades off buildings.
Steel & Tube Holdings Ltd., a local distributor of roofing iron and reinforcing steel, jumped 7.7 percent to NZ$2.37. Fletcher Building Ltd., New Zealand’s largest supplier of building products, advanced 5 percent to NZ$8.14.
“Earthquakes, though normally terrible in terms of the human costs, often result in a lot of rebuilding activity,” said Shane Oliver, AMP Capital Investors Ltd.’s Sydney-based head of investment strategy.
Tower Ltd., an insurer, sank 3.1 percent to NZ$1.85. AMP Ltd., which sells business and individual insurance policies in New Zealand with Vero Insurance Ltd., fell 0.3 percent to NZ$6.58.
Among other stocks that declined today, Macquarie Group Ltd., Australia’s biggest investment bank, tumbled 4.7 percent to A$35.25 after saying first-half profit will fall 25 percent as faltering markets sap the flow of deals. The stock had the second-largest drop in the MSCI Asia Pacific Index.
To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net Monami Yui in Tokyo at myui1@bloomberg.net.
Rate These Stories
Rate this Page