Asian stocks rose, set for the biggest weekly gain since November, as construction firms gained on optimism for orders when Japan rebuilds after its worst earthquake, and amid signs the U.S. economy is strengthening.
Komatsu Ltd., the world’s No. 2 maker of construction machinery, gained 4.7 percent in Tokyo. Comsys Holdings Corp., which designs and constructs phone and power facilities, jumped 6.3 percent. Hynix Semiconductor Inc., the world’s second- largest maker of computer-memory chips, advanced 2.8 percent in Seoul after U.S. unemployment claims dropped. Bank of China Ltd. (3988) gained 2.6 percent in Hong Kong after earnings beat estimates.
The MSCI Asia Pacific Index rose for a fourth day this week, advancing 0.6 percent to 134.05 as of 6:03 p.m. in Tokyo. About two stocks increased for each that fell. The index is headed for a 4 percent weekly gain after it last week recorded its biggest drop since the height of the European debt crisis in May, as Japan fought to avert a post-earthquake nuclear disaster at a damaged reactor, and after tensions escalated in Libya.
Parts of the U.S. economy are “still doing quite well,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billon. “We’ve seen some return to some risk trades after the tragic events in Japan and increases in the oil price.
“Clearly, the global economy is still in recovery mode and we’re going to get relatively decent growth through this year and next,” Halmarick told Bloomberg Television today.
‘Steadily Recovering’
Japan’s Nikkei 225 Stock Average gained 1.1 percent. South Korea’s Kospi Index and Australia’s S&P/ASX 200 Index increased 0.9 percent, and Hong Kong’s Hang Seng Index rose 1.1 percent.
“The U.S. economy is steadily recovering,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc.
Futures on the Standard & Poor’s 500 Index increased 0.4 percent today. The index advanced 0.9 percent yesterday in New York after corporate profits topped analysts’ estimates and figures from the Labor Department showed jobless claims declined by 5,000 to 382,000 in the week ended March 19, in line with the median forecast of economists surveyed by Bloomberg News.
A separate Commerce Department report showed orders for long-lasting goods unexpectedly fell in February, raising concern over the sustainability of the rebound in U.S. business investment.
Japanese Builders
“The fall in U.S. weekly jobless claims was encouraging,” said Tim Schroeders, a Melbourne-based money manager at Pengana Capital Ltd., which manages about $1 billion. “However, a fall in U.S. durable goods new orders was disappointing.”
The MSCI Asia Pacific Index dropped 3.3 percent this year through yesterday. The S&P 500 increased 4.1 percent and the Stoxx Europe 600 Index was little changed. Stocks in the Asian benchmark were valued at 13.4 times estimated earnings on average, compared with 13.5 times for the S&P 500 and 11.1 times for the Stoxx 600.
Komatsu, Japan’s largest maker of construction machinery, climbed 4.7 percent to 2,795 yen in Tokyo. Comsys Holdings surged 6.3 percent to 827 yen. Daisue Construction Co. jumped 4.1 percent to 102 yen.
The Nikkei 225 (NKY) fell 8 percent from March 11 through yesterday, the biggest decline among indexes for the world’s largest equity markets, after an earthquake and tsunami killed thousands of people, razed homes and factories and crippled the Fukushima nuclear-power station northeast of Tokyo.
‘Nuclear Issues’
“Unless there’s bad news related to nuclear issues, we can expect stocks will be bought back,” Monex’s Kanayama said.
Hynix added 2.8 percent to 29,900 won in Seoul as the U.S. employment figures bolstered evidence the labor market in the world’s largest economy is recovering.
In Tokyo, Toyota Motor Corp., the world’s biggest carmaker, advanced 1.9 percent to 3,275 yen as the company said it will resume production of hybrid models in Japan on March 28.
Rio Tinto Group, the world’s No. 2 mining company by sales, gained 0.5 percent to A$82.02 in Sydney on optimism demand for raw materials will climb as a global economic recovery strengthens. Mitsubishi Corp., Japan’s biggest commodities trader, added 1.9 percent to 2,310 yen.
Woodside Petroleum Ltd. (WPL) rose 2.6 percent to A$46.72 in Sydney amid speculation Australia’s second-largest oil and gas producer may arrange an assets-for-shares swap with its biggest stockholder, Royal Dutch Shell Plc.
Bank of China, the nation’s No. 3 lender by market value, rose 2.6 percent to HK$4.27 in Hong Kong after posting a 29 percent increase in full-year net income, beating estimates. China Construction Bank Corp. gained 2 percent to HK$7.32 ahead of the release of its full-year results today.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
