Asian Stocks Gain on Apple Profit; Dollar Drops Before Bernanke

July 21 (Bloomberg) -- Asian stocks rose as technology companies were boosted by Apple Inc.’s better-than-estimated earnings, while the dollar weakened ahead of testimony to Congress by Federal Reserve Chairman Ben S. Bernanke.

The MSCI Asia Pacific Index gained 0.3 percent to 115.76 as of 10:57 a.m. in Tokyo, with about two stocks advancing for each one that declined. Futures on the Standard & Poor’s 500 Index lost 0.2 percent after the gauge climbed 1.1 percent yesterday. The dollar traded near a two-month low versus the euro and was at 87.24 yen in Tokyo from 87.51 yen in New York yesterday.

Equities were boosted after Apple posted a 78 percent surge in third-quarter profit as customers flocked to the new iPad tablet computer. Bernanke gives his semi-annual report on the economy to Congress today and tomorrow amid diminishing expectations that interest rates will rise soon.

“The global economy is slowing down, but concern about a double-dip recession is fading,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.

Nine of 10 industries in the S&P 500 advanced yesterday as commodity producers and homebuilders, which defied the earlier slump, led gains after a U.S. government report showed building permits, a gauge of future construction, rose 2.1 percent last month. Taiwan’s Taiex index rose 0.3 percent and South Korea’s Kospi index climbed 0.7 percent, both gaining for a second day. The Nikkei 225 Stock Average rose 0.2 percent.

Apple Boost

Samsung Electronics Co., which supplies semiconductor chips for Apple products, increased 1.6 percent. LG Chem Ltd., the iPhone battery supplier that reported record quarterly profit yesterday, gained 3.6 percent. Catcher Technology Co., which supplies metal parts for the iPhone, climbed 1.8 percent.

The dollar traded at $1.2899 per euro from $1.2880 yesterday, when it touched $1.3029, the lowest since May 10. The euro was at 112.53 yen from 112.70 yen.

“Disappointing economic data and diminishing expectations the Federal Reserve will raise rates have pushed down the dollar,” said Satoru Ogasawara, a foreign-exchange analyst and economist in Tokyo at Credit Suisse AG. “The dollar may fall to 85 yen in the short term.”

Australia Gains

Australia’s currency traded at 88.22 U.S. cents from 88.39 cents yesterday, when it gained 1.8 percent. It reached 88.71 cents on July 14, the most since May 14. The currency was at 76.979 yen from 77.35 yen.

“Commodity currencies will continue to follow equity markets,” said Tony Allen, head of currency trading at ANZ National Bank Ltd. in Wellington. “Bernanke’s testimony is the other thing driving the U.S. dollar weakness with people expecting him to be dovish.”

The cost of protecting Asia-Pacific bonds from non-payment declined, according to traders of credit-default swaps.

The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan dropped for a third day, falling 4 basis points to 127 basis points in Hong Kong, the lowest level since July 15, according to Credit Agricole CIB and CMA prices. The Markit iTraxx Japan index fell 4 basis points to 126 basis points in Tokyo, also the lowest since July 15, Morgan Stanley and CMA prices show.