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Asian Stocks Have Biggest Weekly Gain This Year After Fed's Monetary Plan

Asian stocks rose this week, driving up the benchmark index by the most this year, on optimism the U.S. Federal Reserve will succeed in stoking growth in the world’s biggest economy.

Mitsubishi Corp., Japan’s biggest commodities trader, advanced 7.8 percent in Tokyo as oil and metal prices climbed. Cnooc Ltd., China’s biggest offshore oil explorer, jumped 10 percent in Hong Kong. BHP Billiton Ltd. and Rio Tinto Group, the world’s No. 1 and No. 3 mining companies, climbed more than 5 percent in Sydney. Nissan Motor Co., Japan’s No. 3 carmaker, gained 7.6 percent after reporting higher-than-expected earnings and raising its profit forecast.

“We’re seeing follow-through strength in risky assets, suggesting that not all of the U.S. quantitative-easing news was in the price,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd. in Sydney. “The market had been expecting a second round of easing, but it appears the rumor wasn’t bought to the extent feared. That’s why we’re not seeing any selling.”

The MSCI Asia Pacific Index rose 4.2 percent this week to 134.82, its steepest increase since the five days ended Dec. 4.

The gauge has risen about 12 percent in 2010 on speculation profits will weather Europe’s debt crisis, China’s steps to curb property price gains and concern about the pace of U.S. economic growth. Shares in the gauge trade at an average of about 15 times estimated earnings, the highest level since June.

Fed Measures

The MSCI index had its biggest two-day gain since May and equity markets rose worldwide after the Federal Reserve said Nov. 3 that it will purchase as much as $600 billion of assets through June, expanding record measures to support the U.S. economy.

Japan’s Nikkei 225 Stock Average climbed 4.6 percent in the four days it was open this week. Hong Kong’s Hang Seng Index surged 7.7 percent, South Korea’s Kospi Index gained 3 percent. China’s Shanghai Composite Index surged 5.1 percent. Australia’s S&P/ASX 200 Index rose 3 percent.

Mitsubishi, which gets more than 40 percent of its sales from metals and energy, gained 7.8 percent to 2,086 yen this week. In Hong Kong, Cnooc jumped 10 percent to HK$17.68 and Jiangxi Copper Co., China’s largest producer of the metal, advanced 16 percent to HK$25.10. Rio Tinto increased 5.5 percent to A$87.20. BHP advanced 8 percent to A$45.27. Canadian regulators blocked BHP’s hostile bid for Potash Corp. of Saskatchewan Inc.

Commodities Advance

Crude oil for December delivery advanced to as much as $87.22 a barrel before Asia’s main markets closed for the week, the highest price since October 2008. The London Metal Exchange Index of prices for six industrial metals jumped 4.8 percent this week before Asian trading closed.

Nissan rose 7.6 percent to 764 yen. The carmaker expects 270 billion yen ($3.3 billion) in net income in the year to March, compared with an earlier forecast of 150 billion yen, the Yokohama-based company said. Nissan posted 102 billion yen in profit for the three months ended Sept. 30, beating the 89 billion yen average estimate of 6 analysts surveyed by Bloomberg.

Country Garden Holdings Co., a Chinese developer controlled by billionaire Yang Huiyan, soared 16 percent to HK$3.19 after saying contracted sales jumped 65 percent in the first 10 months from a year earlier.

About six companies in the MSCI Asia Pacific Index have exceeded profit estimates for every five that have fallen short, based on Bloomberg data compiled from about 450 companies that have reported quarterly results since Oct. 7.

Resona Holdings Inc., Japan’s fourth-biggest bank, plunged 20 percent to 512 yen in Tokyo after reports said it plans to sell shares to help repay a government bailout.

To contact the reporters for this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net.

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

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