Asian Stocks Rise as U.S. Earnings Top Estimates, Oil Advances

Asian stocks rose, driving the regional benchmark index to the highest level in almost four months, after U.S. companies reported earnings that topped analysts’ estimates, easing concerns that global economic growth may slow.

Komatsu Ltd., the world’s No. 2 maker of construction equipment, advanced 1.8 percent after Caterpillar Inc. posted earnings that beat estimates. Seiko Epson Corp., a Japanese printer maker, rose 5 percent after forecasting net income will jump 66 percent this fiscal year. GS Engineering & Construction Corp., a South Korea builder, jumped 2.7 percent in Seoul after the government announced policy measures to aid troubled builders and boost the property market. BHP Billiton Ltd., the world’s biggest mining company, slumped 0.6 percent in Sydney.

The MSCI Asia Pacific Index increased 0.4 percent to 140.09 at 11:17 a.m. in Tokyo, the highest level since Jan. 19. Almost three stocks rose for each that fell on the gauge. The measure climbed 0.5 percent last week after the Federal Reserve renewed its pledge to stimulate growth in the U.S., the world’s biggest economy, with low interest rates, boosting the outlook for exporters.

“In addition to U.S. companies having good earnings, Japanese companies’ earnings were not so bad. That’s improving investors’ sentiment in the market,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc. “Excessive worries about the future of the economy and companies’ earnings are receding.”
Nikkei, Kospi

Japan’s Nikkei 225 Stock Average rose 1 percent to the highest level since the March 11 earthquake and tsunami. South Korea’s Kospi Index added 1.3 percent. New Zealand’s NZX 50 Index slipped 0.5 percent.

Australia’s S&P/ASX 200 Index lost 0.7 percent, reversing an earlier gain of 0.3 percent, after the nation’s currency rose above $1.10 for the first time since foreign-exchange controls were scrapped in 1983. Australia’s manufacturing contracted in April for the seventh time in eight months as a record-high currency and consumer caution hurt textile and other producers, a report showed today.

BHP dropped 0.6 percent, the second-biggest drag on the MSCI Asia Pacific Index. Woodside Petroleum Ltd., Australia’s No. 2 oil and gas producer, declined 1.7 percent. Westpac Banking Corp. slid 1.1 percent.
Consumer Spending

Futures on the Standard & Poor’s 500 Index was little changed today. In New York, the index rose 0.2 percent to 1,363.61 on April 29.

Caterpillar, the world’s largest maker of construction equipment, posted first-quarter profit that topped analysts’ estimates and raised its full-year earnings forecast as sales surged in developing countries.

Goodyear Tire & Rubber Co., the largest U.S. tiremaker, reported first-quarter adjusted earnings of 51 cents a share, more than quadrupling the 11-cent average estimate of analysts.

Also, a government report showed consumer spending in the U.S. climbed in March as Americans spent more on food and fuel. Purchases rose 0.6 percent after a revised 0.9 percent gain in February that was higher than previously estimated, Commerce Department figures showed on April 29.

Komatsu advanced 1.8 percent to 2,891 yen in Tokyo. Canon Inc., the world’s biggest manufacturer of cameras, climbed 2 percent to 3,875 yen. Toyota Motor Corp., the world’s No. 1 carmaker, increased 1.6 percent to 3,280 yen. Hyundai Heavy Industries Co., the world’s largest shipyard, which receives 89 percent of its revenue abroad, increased 0.8 percent to 539,000 won in Seoul.
Seiko, Cosmo

In Tokyo, Seiko Epson jumped 5 percent to 1,482 yen, headed for its highest close since Jan. 21. The company forecast net income will jump 66 percent to 17 billion yen this fiscal year. Cosmo Oil Co., a refiner, advanced 3.4 percent to 274 yen. The company had 28 billion yen in net income for the year ended March 31, up 56 percent from its forecast, according to a preliminary earnings statement.

Electric Power Development Co., Japan’s biggest power wholesaler, leapt 4.7 percent to 2,225 yen. The company projected full-year net income will increase 33 percent to 26 billion yen.

The MSCI Asia Pacific Index increased 1.3 percent this year through April 29, compared with gains of 8.4 percent by the Standard and Poor’s 500 Index and 2.9 percent by the Stoxx Europe 600 Index.

Stocks in the Asian benchmark were valued at 13.5 times estimated earnings on average, compared with 13.8 times for the S&P 500 and 11.5 times for the Stoxx 600.
Aid for Builders

In Seoul, GS Engineering and other South Korean builders advanced in Seoul trading after the government announced policy measures to aid troubled builders and boost the property market.

GS Engineering rose 2.7 percent to 132,500 won. Daewoo Engineering & Construction Co. added 3.1 percent to 11,750 won. Daelim Industrial Co. climbed 3.3 percent to 125,000 won.

South Korea’s government announced policy measures to aid troubled builders and the property market, including tax incentives for real-estate investment trusts that buy unsold housing. South Korea will establish a bank to purchase soured loans owed by builders and developers, the financial regulator said.