Asian Stocks Rise, Extending Fifth Weekly Gain, on JP Morgan Profit, Yen

Asia stocks rose, extending a fifth straight weekly advance, after JPMorgan Chase & Co. reported record profit and the yen weakened to its lowest level in a month against the euro, boosting the outlook for export earnings.

Canon Inc., a Japanese camera maker that gets about 80 percent of its revenue abroad, increased 0.6 percent in Tokyo. Honda Motor Co., Japan’s No. 2 carmaker by market value, gained 0.5 percent. Samsung Electronics Co., the world’s largest maker of televisions, climbed 1.6 percent in Seoul. Gold producers declined in Sydney after the price of the precious metal slumped 1.9 percent on Jan. 14.

“Expectations about the U.S. economic recovery are rising, and market sentiment is looking up,” said Koichiro Nishio, a market analyst in Tokyo at Nikko Cordial Securities Inc. “This is also leading to improved expectations about Japanese company earnings.”

The MSCI Asia Pacific Index was little changed at 138.87 as of 10:37 a.m. in Tokyo, with three stocks advancing for every two that fell. The regional benchmark index climbed to a two- and-a-half year high last week after German Chancellor Angela Merkel said she was ready to take necessary steps to stem Europe’s sovereign debt crisis.

Japan’s Nikkei 225 Stock Average gained 0.4 percent in Tokyo and South Korea’s Kospi Index was little changed. In Sydney, Australia’s S&P/ASX 200 Index lost 0.4 percent, while New Zealand’s NZX 50 Index dropped 0.3 percent.

Futures on the Standard & Poor’s 500 Index slipped 0.1 percent today. The index increased 0.7 percent on Jan. 14 after JPMorgan’s profit overshadowed lower-than-forecast consumer confidence and retail sales. The previous day, Intel Corp. forecast sales that may exceed analyst estimates.

JPMorgan, Currency

JPMorgan, the second-biggest U.S. bank by assets, reported a quarterly profit of $4.83 billion. The bank is “hopeful” it can raise its dividend and buy back shares, Chief Financial Officer Douglas Braunstein said.

Canon increased 0.6 percent to 4,210 yen in Tokyo. Honda Motor Co., Japan’s second-largest automaker, gained 0.5 percent to 3,360 yen. Sony Corp., the maker of Bravia televisions and PlayStation game consoles, added 0.3 percent to 2,950 yen.

The yen depreciated to as low as 111.12 against the euro, its weakest level in a month, boosting the value of European income at Japanese companies when converted into their home currency.

Samsung climbed 1.6 percent to 948,000 won in Seoul. LG Electronics Inc., the world’s third-largest mobile-phone maker, rose 1.3 percent to 115,500 won.

Estimated Earnings

The MSCI Asia Pacific Index rose 14.3 percent last year, compared with gains of 12.8 percent by the S&P 500 and 8.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 14.2 times estimated earnings on average at the last close, compared with 13.6 times for the S&P 500 and 11.2 times for the Stoxx 600.

Newcrest Mining Ltd., Australia’s largest gold producer, dropped 1.3 percent to A$37.78 in Sydney after gold futures for February delivery fell 1.9 percent on Jan. 14 to settle at $1,360.50 an ounce on the Comex in New York, the lowest closing price since Nov. 22.

Rival Avoca Resources Ltd. lost 2.7 percent to A$3.26 and St. Barbara Ltd. retreated 2.5 percent to A$1.935.