Asian Stocks Climb, Led by Commodity Companies; Qantas Advances

Dec. 21 (Bloomberg) -- Asian stocks advanced for the first time in three days, led by commodity producers, after oil, copper and gold prices gained and Qantas Airways Ltd. forecast a pretax profit.

Qantas jumped 4.4 percent as Australia’s biggest airline forecast first-half pretax profit of between A$50 million and A$150 million. BHP Billiton Ltd., the world’s largest mining company and Australia’s top oil producer, added 2 percent after oil and copper rose in New York on Dec. 18. Nippon Oil Corp, Japan’s largest oil refiner, climbed 3.8 percent. Mazda Motor Corp., Japan’s second-largest car exporter, gained 1.4 percent after the yen weakened.

“Investors are cautiously optimistic heading into 2010,” said Cameron Peacock, a market analyst at IG Markets in Melbourne. “There seems to be a general view that the economic recovery is still on track. Next year will certainly be one of consolidation, and confirmation that the expectations built into equity valuations are justified.”

The MSCI Asia Pacific Index rose 0.4 percent to 117.98 as of 9:37 a.m. in Tokyo, with about five stocks advancing for every four that declined. The index has rallied 32 percent this year, on course for its biggest annual increase since 2003, as central banks worldwide reduced borrowing costs and governments increased spending to revive global economic growth.

Japan’s Nikkei 225 Stock Average climbed 0.6 percent. Australia’s S&P/ASX 200 Index gained 0.7 percent. South Korea’s benchmark Kospi index fell 0.5 percent in Seoul, while New Zealand’s NZX 50 Index slipped 0.1 percent.

Nikkei, S&P/ASX 200

The yen depreciated to as much as 90.67 today from 89.72 at the close of stock trading in Tokyo on Dec. 18. Against the euro, it weakened to as much as 129.83 from 129.03. That boosts the value of sales generated overseas for Japanese companies when converted into their home currency.

“The weak yen will likely encourage a positive move in the market,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “If the yen can stabilize in the 90s to the dollar, it will ease concern for company earnings.”

Copper futures for March delivery rose 1.05 cents, or 0.3 percent, to $3.1385 a pound on the Comex division of the New York Mercantile Exchange on Dec. 18. Crude oil for January delivery climbed 1 percent, the highest settlement since Dec. 7.

In New York, the Standard & Poor’s 500 Index advanced 0.6 percent on Dec. 18 after better-than-estimated profit at Oracle Corp. and Research In Motion Ltd. boosted technology companies.

The MSCI Asia Pacific Index has surged 67 percent from its lowest level in more than five years on March 9, outpacing gains of 63 percent by the S&P 500 and 56 percent for the Dow Jones Stoxx 600 Index in Europe. Stocks in the gauge are valued at an average of 22.2 times estimated earnings, compared with an average of 17.6 times for the S&P.