Asian Stocks Rise on Fed’s Low-Rate Pledge

Asian stocks rose, sending the regional benchmark index to its highest level since February, after the Federal Reserve renewed its pledge to stimulate U.S. economic growth with low interest rates and as companies from Advantest Corp. (6857) and Komatsu Ltd. (6301) posted higher earnings.

Honda Motor Co., the Japanese carmaker that gets about 45 percent of sales from North America, gained 2.4 percent in Tokyo. Advantest, the world’s biggest maker of memory-chip testers, surged 5.6 percent. Komatsu, the world’s second-largest maker of construction equipment, advanced 2.4 percent. Computershare Ltd. (CPU), the world’s No. 1 share registrar, jumped 7.7 percent in Sydney after agreeing to buy the shareholder services business of Bank of New York Mellon Corp. for $550 million.

The MSCI Asia Pacific Index increased 1.4 percent to 139.74 at 11:10 a.m. in Tokyo, heading for its highest close since Feb. 18. More than two stocks gained for each that dropped. The measure climbed 2.2 percent last week after U.S. companies including Apple Inc. reported increased profits, signaling the global economic recovery is accelerating.

“We have a combination of low interest rates and strong earnings,” said Nader Naeimi, a Sydney-based strategist for AMP Capital, which has almost $100 billion under management. “It’s a pretty good cocktail for a good equity market.”

Japan’s Nikkei 225 (NKY) Stock Average rose 1.3 percent, the highest since the March 11 earthquake and tsunami. Investors shrugged off a government report today that showed Japan’s industrial production plunged last month after the temblor led to shuttered factories.
New Zealand Rates

New Zealand’s NZX 50 Index rose 0.5 percent after the nation’s central bank kept its benchmark interest rate at a record low as the country recovers from its most devastating earthquake in 80 years.

South Korea’s Kospi Index and Australia’s S&P/ASX 200 Index both gained 0.5 percent. Hong Kong’s Hang Seng Index added 0.7 percent, while China’s Shanghai Composite Index jumped 0.8 percent.

Futures on the Standard & Poor’s 500 Index gained 0.4 percent today. In New York yesterday, the index rose 0.6 percent to 1,355.66. Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely.

“The U.S. will continue its easing monetary policy, as was expected,” said Toshio Sumitani, a strategist at Tokai Tokyo Research Center. “Stocks in the U.S. are rising with support from the easing policy, as they are cheap. Gains in U.S. stocks are positive for other stock markets.”

U.S. Orders

The Fed left its benchmark interest rate in a range of zero to 0.25 percent, where it’s been since December 2008.

Bernanke reinforced the view of the Federal Open Market Committee, which released its policy statement yesterday, that borrowing costs are likely to stay low for “an extended period.” The panel agreed to finish $600 billion of Treasury purchases in June and said surging commodity prices will probably have a transitory effect on inflation.

The Commerce Department said yesterday that orders for U.S. durable goods rose in March for a third consecutive month, showing businesses intend to keep spending to update equipment.

The MSCI Asia Pacific Index increased just 0.1 percent this year through yesterday, compared with gains of 7.8 percent by the S&P 500 and 2.3 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.2 times estimated earnings on average, compared with 13.8 times for the S&P 500 and 11.4 times for the Stoxx 600.