Asian Stocks Gain as Earnings Offset Global Growth Concerns

Aug. 21 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index to its sixth advance in seven weeks, as better-than-estimated earnings from Cnooc Ltd. to Westfield Group offset concerns the global recovery is faltering.

Cnooc Ltd., China’s biggest offshore oil producer, advanced 3.4 percent this week in Hong Kong. Westfield, the world’s largest owner of shopping malls, rose 1.1 percent in Sydney. Tokyo Electron Ltd., the world’s second-biggest producer of chipmaking equipment, climbed 2.7 percent in Tokyo after larger rival Applied Materials Inc. forecast higher-than-estimated profit.

“I’m telling people not to be too pessimistic,” said Kenji Sekiguchi, general manager of strategic research and investment at Mitsubishi UFJ Asset Management Co., which oversees about $73 billion in Tokyo. “The market in the second half of this year will reflect positive earnings more explicitly than the latest earnings season.”

The MSCI Asia Pacific Index gained 0.4 percent this week to 118.29, following last week’s 3.7 percent retreat. The index has slumped about 8.4 percent from its high this year on April 15 as Europe’s debt crisis, China’s measures to curb property-price inflation and disappointing economic reports in the U.S. fueled concern global growth may stall.

China’s Shanghai Composite Index advanced 1.4 percent this week as the nation’s economy surpassed Japan as the world’s second largest last quarter. Japan’s Nikkei 225 Stock Average fell 0.8 percent.

Australia’s S&P/ASX 200 Index fell 0.6 percent. Hong Kong’s Hang Seng Index dropped 0.4 percent. South Korea’s Kospi Index advanced 1.7 percent as sales at the nation’s major department stores increased in July for a 17th month amid an economic recovery.

Energy Stocks Rally

Profits for companies in the MSCI Asia Pacific are forecast to rise 26 percent in the next 12 months. That compares with 27 percent growth for the MSCI World Index of stocks in 24 developed nations, according to data compiled by Bloomberg.

Energy-related stocks posted the biggest gain among 10 industry group on the MSCI Pacific Index this week.

Cnooc increased 3.4 percent to HK$13.26 as the oil explorer’s first-half profit more than doubled, beating estimates as a rebound in the nation’s economic growth spurred demand and helped drive a rally in crude prices. Woodside Petroleum Ltd., Australia’s second-largest oil producer, advanced 4.1 percent to A$43.22 in Sydney.

China Shenhua Energy Co., a unit of the nation’s biggest coal company, increased 5.9 percent to HK$29.70 as the company said it plans to buy assets from its parent. It did not elaborate.

Westfield Gains

In Australia, Westfield Group gained 1.1 percent to A$12.45. The company said Aug. 18 net income climbed to A$960.9 million ($855 million) in the first half, compared to a loss of A$708 million a year ago. Earnings excluding property revaluations and costs were A$1.03 billion, beating a forecast of A$1.01 billion, according to the median of five analyst estimates compiled by Bloomberg.

Brambles Ltd. surged 8 percent to A$5.65 after the world’s biggest supplier of wooden pallets posted earnings that beat estimates and said operating profit may rise this year as markets grow in China and India.

The MSCI Asia Pacific Index yesterday declined for the first time in five days after U.S. jobless claims unexpectedly increased and an index of manufacturing in the Philadelphia area slumped. Companies in the gauge trade at 13.7 times estimated earnings, compared with about 20.3 times at the beginning of the year.

Jobless Claims

The U.S. Labor Department reported initial jobless claims rose by 12,000 to 500,000 in the week ended Aug. 14. Economists surveyed by Bloomberg News had a median forecast of 478,000. The Federal Reserve Bank of Philadelphia’s general economic index fell this month to the lowest reading since July 2009.

“The U.S. economic recovery is slowing,” said Kazuhiro Takahashi, a general manager at Tokyo-based Daiwa Securities Capital Markets Co. “The economy has come to a tipping point -- it will level off or decline.”

Tokyo Electron increased 2.7 percent to 4,370 yen in Tokyo. Hynix Semiconductor Inc., the world’s second-largest computer- memory chipmaker, advanced 1.6 percent to 22,000 won in Seoul.

U.S.-based Applied Materials, Tokyo Electron’s larger rival, forecast on Aug. 18 quarterly profit that exceeded analysts’ estimates as semiconductor manufacturers order equipment to boost their output amid rising demand.

PICC Property and Casualty Co. surged 17 percent to HK$9.43, the second-biggest advance on the MSCI Asia Pacific Index. China’s biggest non-life insurer said first-half profit climbed to 2.65 billion yuan from 80 million yuan a year ago.

Genting Bhd., Asia’s second-biggest listed casino operator, rose 5.3 percent to 8.61 ringgit in Kuala Lumpur as its Singapore unit rallied to a record high and Citigroup Inc. and UOB-Kay Hian Holdings raised their ratings. Genting Singapore Plc, operator of one of two casinos in the city-state, has surged 2.7 percent since saying on Aug. 12 that it has returned to profit in the second quarter.