Asian Stocks Climb to One-Week High as Analysts Upgrade Shares

Asian stocks advanced, sending the regional benchmark index to a one-week high, as analysts recommended companies from Toshiba Corp. to Westpac Banking Corp.

Toshiba, the world’s second biggest maker of flash memory, rose 2.8 percent and Westpac climbed 0.8 percent. Iluka Resources Ltd. and Kobe Steel Ltd. also climbed with analysts upgrades. BHP Billiton Ltd., which reported a 72 percent jump in first-half profit today, dropped in Sydney trading.

The MSCI Asia Pacific Index gained 0.2 percent to 137.94 as of 10:30 a.m. in Sydney, recouping yesterday’s retreat. The benchmark gauge last week sank 2.7 percent after China raised borrowing costs and anti-government protests intensified in Egypt, eventually forcing President Hosni Mubarak to resign.

Japan’s Nikkei Stock Average gained 0.3 percent as real estate developers and banks extended gains after the Bank of Japan yesterday raised its economic assessment for the first time in nine months.

Nomura Research Institute said in a report dated Feb. 14 that Japan will “break out of its current lull” in the first half of 2011, instead of its earlier prediction of the second half.

Elsewhere, South Korea’s Kospi Index was little changed while Australia’s S&P/ASX 200 Index fell 0.2 percent.

Futures on the Standard & Poor’s 500 Index climbed 0.1 percent after the benchmark for U.S. equities yesterday fell from a 32-month higher as retail sales missed economists’ forecasts and Exxon Mobil Corp. led oil companies lower.

Toshiba jumped 2.8 percent to 547 yen in Tokyo after Nikko Cordial Securities Inc. raised its recommendation for the shares to “outperform” from “neutral.”

Westpac gained 1.2 percent to A$24.61 after Deutsche Bank G upgraded Australia’s second-largest lender to “buy” from “hold.”

Iluka Resources gained 3.4 percent to A$9.97 as Royal Bank of Scotland Group upgraded the world’s biggest zircon producer to “buy” while Kobe Steel increased 1.3 percent to 238 yen. Both Citigroup Inc. and Nomura Holdings also raised their recommendation for the steelmaker to “buy.”