Asian Stocks Rise as Earnings Point to Strengthening Recovery

Feb. 16 (Bloomberg) -- Asian stocks rose, led by financial companies, as improving earnings in Australia pointed to a strengthening global economic recovery.

Westpac Banking Corp., Australia’s second-biggest lender, jumped 4.5 percent in Sydney as first-quarter profit climbed. OneSteel Ltd. surged 6.2 percent in Sydney after the steelmaker said domestic demand is improving. BHP Billiton Ltd., the world’s largest mining company, climbed 1 percent in Sydney on higher metal prices. All Nippon Airways Co. gained 3.9 percent in Tokyo after Citigroup Inc. increased its investment rating.

“Despite the concerns, we continue to see robust earnings being reported globally,” said Tim Schroeders, who helps manage $1.1 billion at Pengana Capital Ltd. in Melbourne. “This should serve to buoy valuations and increase the attractiveness of stocks once greater certainty in the macro-economic outlook occurs.”

The MSCI Asia Pacific Index advanced 0.3 percent to 116.23 as of 09:34 a.m. in Tokyo. The gauge has dropped 8.3 percent from a 17-month high on Jan. 15 on speculation central banks will tighten monetary policy, and that Greece, Spain and Portugal will struggle to curb deficits.

Australia’s S&P/ASX 200 Index rose 1 percent and New Zealand’s NZX 50 Index advanced 0.6 percent in Wellington. Japan’s Nikkei 225 Stock Average gained 0.4 percent.