Asian Stocks Rise on Earnings Before Fed Meeting EndsAdam Haigh
Asian stocks rose, driving the regional benchmark index toward the biggest back-to-back monthly advance since February 2012, after profit climbed at Daiwa Securities Group Inc. and China Petroleum & Chemical Corp.
Daiwa, Japan’s second-largest brokerage, advanced 3.8 percent. FKP Property Group gained 4 percent after a shareholder sold stock in the Australian real-estate firm for a higher price than yesterday’s close. China Petroleum & Chemical, known as Sinopec, climbed 2.8 percent in Hong Kong after third-quarter profit surged 20 percent, beating estimates.
The MSCI Asia Pacific Index gained 0.9 percent to 143.26 as of 7:44 p.m. in Tokyo, with all 10 industry groups on the gauge climbing. The Federal Reserve will maintain its $85 billion-a-month in bond purchases when it concludes a two-day policy meeting today, according to economists’ forecasts.
“Company earnings will grow,” said Wellian Wiranto, a Singapore-based investment strategist at the wealth-management unit of Barclays Plc, which oversees about $217 billion worldwide. “Asian companies will benefit from the region’s robust medium-term economic growth. The Fed is likely to wait until at least March next year before embarking on that journey, leaving more breathing space for global markets.”
Japan’s Topix index advanced 0.9 percent as a report showed the nation’s industrial production climbed in September. Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index climbed 0.3 percent.
Hong Kong’s Hang Seng Index advanced 2 percent, the most since Sept. 2. China’s Shanghai Composite Index added 1.5 percent. Taiwan’s Taiex Index gained 0.5 percent and South Korea’s Kospi index rose 0.4 percent. Singapore’s Straits Times Index increased 0.7 percent
The MSCI Asia Pacific Index gained 3.4 percent this month, on course for a second monthly increase. That pushed its price-earnings ratio to 13.8 times estimated earnings from 12.7 at the end of August, according to data compiled by Bloomberg. That compares with a multiple yesterday of 16 for the Standard & Poor’s 500 Index and 14.9 for the Stoxx Europe 600 Index.
Of the companies on the gauge that have reported quarterly results this season and for which Bloomberg compiles estimates, 47 percent have exceeded analysts’ estimates on profit, and 50 percent posted better-than-expected revenue. Of the S&P 500 members that have reported, 75 percent beat profit estimates and 53 percent exceeded projections on sales, according to data compiled by Bloomberg.
Daiwa rose 3.8 percent to 908 yen after the securities firm posted net income of 35.5 billion yen ($361 million) for the quarter ended Sept. 30, from 7.4 billion yen a year earlier.
Sinopec climbed 2.8 percent to HK$6.23 in Hong Kong. Net income rose to 22 billion yuan ($3.6 billion), or 0.18 yuan a share, from 18.3 billion yuan, or 0.15 yuan, a year earlier, the company said in a statement to the Shanghai Stock Exchange. The median of eight analyst estimates compiled by Bloomberg was 19.3 billion yuan.
Datang International Power Generation Co. climbed 2.6 percent to HK$3.56 after the electricity producer reported third-quarter net income of 1.79 billion yuan, beating the average estimate of four analysts of 1.3 billion yuan.
The Fed began a two-day meeting yesterday as data showed consumer confidence in the U.S. fell and after an Oct. 22 report revealed growth in American jobs slowed in September. The central bank’s purchases of mortgage-backed securities will be held at $40 billion and Treasury buying maintained at $45 billion, according to Bloomberg surveys of economists.
Futures on the S&P 500 added 0.3 percent today. The gauge yesterday added 0.6 percent, climbing to a record as earnings from Pfizer Inc. to Xylem Inc. beat estimates and data indicating slower growth fueled bets the Fed will maintain stimulus.
FKP Property advanced 4 percent to A$1.84, a 14-month high, after the company’s third-largest shareholder sold 58.1 million stocks to institutional investors for A$1.78 each.