Asian Stocks Rise a Fourth Week as Dollar, U.S. Reports Boost Exporters

Asian stocks rose for a fourth straight week as exporters gained on a rising dollar and U.S. economic reports that boosted confidence in the world’s largest economy.

Toyota Motor Corp., an automaker that gets more than a quarter of its revenue from North America, gained 7.3 percent in Tokyo. Nissan Motor Co., Japan’s third-biggest carmaker by sales, soared 11 percent, while Hynix Semiconductor Inc., the world’s second-largest computer-memory chipmaker, jumped 8.8 percent in Seoul. Hyundai Motor Co., South Korea’s No. 1 vehicle maker, surged 14 percent.

“There are mounting expectations about an economic recovery in the U.S.,” said Naoki Fujiwara, who helps oversee $6 billion in Tokyo at Shinkin Asset Management Co.

The MSCI Asia Pacific Index rose 0.1 percent this week. The gauge surged to its highest level in 2 1/2 years on Jan. 4 as data on U.S. manufacturing boosted optimism that a recovery in the world’s largest economy is strengthening.

The U.S. jobless rate fell to 9.4 percent in December as payrolls increased 103,000, according to a Labor Department report released yesterday in Washington after Asian markets closed. The increase in jobs was less than the median forecast of 150,000 in a Bloomberg News survey. Still, a report earlier in the week showed the average number of applications for jobless benefits over the past four weeks dropped to the lowest level since July 2008.

China, Japan

The Shanghai Composite Index climbed 1.1 percent in China, after a slowdown in manufacturing boosted speculation that inflation eased last month, reducing pressure on the government to impose further curbs to rein in rising property prices.

In Japan, the Nikkei 225 Stock Average rose 3.1 percent as a stronger dollar boosted the profit outlook for Japanese exporters. Markets in Japan, China, Australia and New Zealand were closed on Jan. 3 for a holiday.

Hong Kong’s Hang Seng Index gained 2.8 percent, and South Korea’s Kospi index rose 1.7 percent. Australia’s S&P/ASX 200 Index declined 0.9 percent.

The MSCI Asia Pacific Index rose 14 percent last year, extending a 34 percent increase in 2009, as positive global economic data and corporate profits outweighed concerns about Europe’s debt crisis and China’s steps to curb inflation. Stocks in the gauge trade at an average 14.2 times estimated earnings, compared with about 22.7 times at the start of 2010.

Dollar Rises

The dollar had its biggest weekly gain since August against the currencies of major trading partners as evidence of a U.S. economic recovery spurred demand for assets denominated in the greenback.

IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners including the yen, increased 2.7 percent to 81.136 at 5 p.m. yesterday in New York, from 79.028 on Dec. 31. The gauge of the greenback rose yesterday for a fifth consecutive day.

“The growth outlook has improved quite a bit,” said Jens Nordvig, a managing director of currency research at Nomura Holdings Inc. in New York. “There is a much more dollar-bullish sentiment that is starting to develop.”

A higher dollar boosts the overseas revenue of Asian exporters when converted into local currencies.

Toyota, the world’s largest automaker, jumped 7.3 percent to 3,455 yen this week in Tokyo, while Nissan soared 11 percent to 861 yen.

Hyundai Motor surged 14 percent to 198,000 won this week in Seoul after it sold 33 percent more vehicles in the U.S. last month. Hynix Semiconductor soared 8.8 percent to 26,100 won.

Hong Kong Gains

Among Chinese exporters to gain on the better outlook for the U.S. economy, Foxconn International Holdings Ltd., the world’s biggest contract maker of mobile phones, gained 6.5 percent to HK$5.78 in Hong Kong this week, while Li & Fung Ltd., the largest supplier to Wal-Mart Stores Inc., gained 3.9 percent to HK$46.85.

U.S. government data released on Jan. 6 showed the average number of applications for jobless benefits over the past four weeks dropped to 410,750, the lowest level since July 2008.

Separately, the Institute for Supply Management’s manufacturing index climbed to 57 last month from 56.6 in November. The non-factory index, which covers about 90 percent of the economy, rose to 57.1, exceeding the median forecast of economists surveyed by Bloomberg News, from 55 in November. A reading greater than 50 points to expansion.

Commodity stocks declined this week as the dollar strengthened, dragging oil and metal prices lower by curbing their attractiveness as an alternative investment.

Commodities Under Pressure

“Soft commodities may be under pressure because of too much speculation previously,” said Danny Yan, a Hong Kong-based fund manager at Haitong International Asset Management, which oversees about $400 million. “With a rebounding U.S. dollar and sufficient global supply, they may see some profit taking.”

Newcrest Mining Ltd. sank 4.5 percent to A$38.61 this week in Sydney, and BHP Billiton Ltd., the world’s biggest mining company, slid 1.4 percent to A$44.62. Rio Tinto Group, the world’s No. 3 miner, retreated 1.2 percent to A$84.48.

Cnooc Ltd., China’s largest offshore oil producer, slid 0.3 percent to HK$18.38 in Hong Kong.

Crude oil for February delivery declined about 3.3 percent this week through Thursday in New York, while the London Metal Exchange Index of six metals including copper and aluminum dropped about 0.5 percent. Gold futures for February delivery declined for the fourth straight day yesterday.

Samsung, Acer

Samsung Electronics Co., the world’s largest maker of televisions, sank 3 percent to 921,000 won this week in Seoul after saying operating income fell 13 percent from a year earlier to 3 trillion won ($2.7 billion) in the three months ended December, lower than average analyst estimates compiled by Bloomberg.

Acer Inc., the world’s second-largest computer maker by market share, tumbled 8.1 percent to NT$82.80 in Taipei after saying snowstorms in Europe hurt its revenue for last quarter.

Yahoo Japan Corp., the operator of Japan’s most-visited Internet portal, slipped 4.1 percent to 30,200 yen in Tokyo after Goldman Sachs Group Inc. rated the stock “sell” in new coverage.