Asian Stocks Advance on Commodity Prices, Brokerage Upgrades

Nov. 10 (Bloomberg) -- Asian stocks climbed, lifting the MSCI Asia Pacific Index for a third day, as a rally in commodities boosted materials producers and brokerages upgraded Australian financial shares.

Newcrest Mining Ltd., Australia’s biggest gold producer, added 1 percent as bullion advanced to a record. Commonwealth Bank of Australia rose 1.3 percent after UBS AG recommended buying the shares and Axa Asia Pacific Holdings Ltd. gained 2.6 percent after Credit Suisse Group AG lifted the stock to “neutral.” Hyundai Motor Co., South Korea’s largest automaker, rallied 3.4 percent after China’s auto sales climbed.

“A rise in gold futures will lure investors and gold- related stocks will be bought,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.

The MSCI Asia Pacific Index gained 0.8 percent to 118.53 as of 10:18 a.m. in Tokyo, set to close at the highest level since Oct. 26. Japan’s Nikkei 225 Stock Average rose 1.4 percent to 9,950.19. South Korea’s Kospi Index added 1.2 percent, while Australia’s S&P/ASX 200 Index advanced 1.2 percent.

Futures on the Standard & Poor’s 500 Index were little changed. The gauge advanced 2.2 percent yesterday for its sixth straight increase as the Group of 20 nations pledged to maintain stimulus measures until economic recoveries take hold.

The MSCI Asia Pacific Index has climbed 68 percent from a more than five-year low on March 9, exceeding gains by the S&P 500 and Europe’s Dow Jones Stoxx 600 Index. Stocks in the benchmark are valued at 22 times estimated earnings, compared with 17 times for the S&P and 15 times for the Stoxx.

Gold Rises

Newcrest added 1 percent to A$35.65. Fortescue Metals Group Ltd., Australia’s third-largest iron ore producer, surged 3.6 percent to A$4.04. Mitsui & Co., which generates more than half its profits from commodities dealing, climbed 2.8 percent to 1,201 yen.

Gold futures for December delivery added 0.2 percent to $1,104 an ounce in New York after reaching a record $1,111.70 yesterday. Crude oil climbed 2.6 percent to $79.43 a barrel. The London Metals Index, a measure of six metals including copper and zinc, gained 0.9 percent.

Commonwealth Bank rose 1.3 percent to A$55.82. The nation’s biggest lender was raised to “buy” from “neutral” at UBS. The company said yesterday first-quarter unaudited cash profit totaled about A$1.4 billion ($1.3 billion).

Axa Asia Pacific, which yesterday rejected an unsolicited $10 billion takeover bid from parent Axa SA and wealth manager AMP Ltd., gained 2.6 percent to A$5.85. Credit Suisse lifted the shares to “neutral” from “underperform.”

Hyundai Motor, which cited growth in China for its record quarterly profit in the three months to Sept. 30, gained 3.4 percent to 106,000 won. NSK Ltd., a maker of bearings for autos, added 2.7 percent to 582 yen. JTEKT Corp., a maker of power steering, jumped 2.7 percent to 989 yen.

China’s passenger-car sales rose 76 percent last month as economic growth and government stimulus measures spurred demand in the world’s largest auto market. Sales climbed to 946,400 units, the China Association of Automobile Manufacturers said.