Asian Stocks Climb as U.S. Indicators Boost Exporters, Banks

Jan. 27 (Bloomberg) -- Asian stocks rallied from a seven- week low as U.S. economic indicators sparked optimism that demand for commodities and Japanese-made goods will recover.

BHP Billiton Ltd., the world’s biggest mining company, leapt 5.2 percent in Sydney after metal prices jumped in London. Panasonic Corp., the world’s biggest maker of consumer electronics, gained 1.8 percent after U.S. home sales and the Conference Board’s index of leading indicators unexpectedly rose. Commonwealth Bank of Australia, the nation’s biggest mortgage lender, led financial stocks higher after American Express Co.’s profit beat the most pessimistic forecasts and the UK’s Barclays Plc shunned government funding.

“There is optimism in the market the global economy will recover from the latter half of this fiscal year,” said Mamoru Shimode, Tokyo-based chief equity strategist at Deutsche Bank AG, said in an interview with Bloomberg Television. “That optimism may help the stock market push through the current downturn.”

The MSCI Asia Pacific Index rose 1.9 percent at 9:49 a.m. in Tokyo. The index is still down 8.9 percent this year, after falling a record 43 percent in 2008, as the world’s biggest economies slipped into recession.

The Nikkei-225 Stock Average rose 2.6 percent to 7,877.86, the biggest gain since Dec. 15. Australia’s S&P/ASX 200 Index rose 2.3 percent to 3,419.70 in Sydney. In New York, the Standard & Poor’s 500 Index drifted between gains and losses before finishing up 0.6 percent.

Home Sales

Panasonic advanced 2.7 percent to 1,086 yen, its biggest gain since Jan. 7. U.S sales of existing homes climbed 6.5 percent last month, whereas economists had expected a decline. The Conference Board index, which points to the direction of the economy over the next three to six months, also went against economist projections, rising 0.3 percent versus an estimated 0.2 percent drop.

The U.S. economic data gave a boost to commodities prices, driving up a gauge of six metals by 5.5 percent in London yesterday. BHP Billiton rose 5.7 percent to A$29.02.

Asian banks gained after American Express, the biggest U.S. credit card company by purchases, reported profit from continuing operations declined 72 percent to $238 million. American Express rose as much as 7.2 percent.

Commonwealth Bank gained 2.7 percent to A$24.73. Mitsubishi UFJ Financial gained 3.5 percent to 474 yen after Bank of America Corp. sublet its Times Square trading floor in New York to the company’s investment banking unit.

Barclays jumped the most in at least two decades in London trading after saying it won’t need government funding because revenue increased last year