Asian Stocks Rise, Corporate Bond Risk Falls on Profit, Economy

July 23 (Bloomberg) -- Asian stocks rose the most in more than a week and a measure of corporate bond risk fell to the lowest in a month after companies boosted profit forecasts and growth accelerated in European manufacturing and services.

The MSCI Asia Pacific Index gained 1.4 percent to 117.17 at 11:45 a.m. in Tokyo. Oil traded at $79.14 a barrel, near an 11- week high. Futures on the Standard & Poor’s 500 Index increased 0.1 percent after the index soared 2.3 percent yesterday.

U.S. equities jumped the most in more than two weeks yesterday after companies from United Parcel Service Inc. to AT&T Inc. and Qualcomm Inc. increased forecasts. Microsoft Corp. reported its biggest sales gain in 2 1/2 years, and Japan’s Komatsu Inc. said it may raise its earnings estimates. Financial companies contributed to the gain in Asian stocks today ahead of the publication of tests on the strength of European banks.

“Microsoft’s earnings reiterated that demand for electronics in the second half is still positive,” said Monika Yang, who helps oversee $2 billion in Hong Kong at Hamon Asset Management Ltd. “This is a boost to Asian stock sentiment as it stops the earlier noises about possible weak demand in the second half.”

Japan’s Nikkei 225 Stock Average gained 1.8 percent, the biggest advance among benchmark equity indexes in the Asia- Pacific region, followed by Australia’s S&P/ASX 200 Index’s 1.6 percent increase. Taiwan’s Taiex index climbed 1.3 percent, the most in more than a week, on a rally in technology shares.

Canon, Asustek Climb

Canon Inc., a camera maker that counts Europe and the Americas as its biggest markets, jumped 2.9 percent in Tokyo. Laptop computer supplier Acer Inc. advanced 1.3 percent and Asustek Computer Inc., a maker of low-cost personal computers, climbed 2.3 percent after Microsoft reported sales.

BHP Billiton Ltd. and Rio Tinto Group, the world’s No. 1 and No. 3 mining companies, jumped at least 1.7 percent in Sydney after oil and metals prices rose yesterday.

Asian bond risk fell. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan dropped 2 basis points to 121 basis points, the lowest since June 21, ICAP Plc and CMA prices show. The indexes track credit-default swaps, which are used to insure against missed debt payments.

The Markit iTraxx Australia index fell 4 basis points to 120 basis points, the lowest since June 22, according to Nomura Holdings Inc. and CMA.

Crude oil traded near an 11-week high after rising on optimism fuel demand will increase amid improved prospects for an economic recovery. Crude for September delivery was at $79.13 a barrel, down 21 cents, in electronic trading on the New York Mercantile Exchange. The contract rose $2.74 to $79.30 yesterday, the highest settlement since May 5 and biggest increase since May 27.