Asian Stocks Post Weekly Gain as Economic Data Fuels Confidence

April 3 (Bloomberg) -- Asian stocks rose this week, driving the MSCI Asia Pacific Index to its highest level 11 weeks as economic reports spurred confidence in the global recovery, boosting commodity prices.

Datong Coal Industry Co., China’s third-largest coal producer, jumped 14 percent in Shanghai as an index of the country’s manufacturing industry rose in March. Lihir Gold Ltd. soared 31 percent in Sydney after rejecting a bid from Australia’s largest gold producer. Dai-ichi Life Insurance Co., which completed the world’s largest initial public offering in two years, rose 1.6 percent on its first full day of trading in Tokyo. Hyundai Motor Co. jumped 10 percent in Seoul, as South Korean government’s exports report beat economist estimates.

“Growth is starting to look more and more entrenched,” said Nader Naeimi, an investment strategist in Sydney at AMP Capital Investors, which oversees about $90 billion globally. “Investors are now looking for the recovery to turn into an outright expansion.”

The MSCI Asia Pacific Index advanced 1.7 percent this week as economic reports from the U.S. and Asia showed signs of global recovery, and as and commodity prices rose.

Japan’s Nikkei 225 Stock Average rose 2.6 percent this week to its highest close since October 2008, as the yen continued to weaken from the previous week, boosting the earnings outlook for companies dependent on overseas demand.

Hang Seng Gains

Hong Kong’s Hang Seng Index gained 2.3 percent this week, and China’s Shanghai Composite Index advanced 3.2 percent. Australia’s S&P/ASX 200 Index climbed 0.2 percent, while South Korea’s Kospi index rose 1.5 percent. Markets in Australia, Hong Kong, New Zealand, Singapore, India, the Philippines and Indonesia were closed on April 2 for holidays.

China’s Purchasing Managers’ Index rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group, a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. The figure was in line with the median estimate in a Bloomberg News survey of 13 economists. Readings above 50 indicate expansion.

In the U.S., Commerce Department in Washington said consumer spending climbed 0.3 percent in February, following a 0.4 percent advance in January. A separate report showed fewer Americans filed claims for jobless benefits last week, bringing the average over the past month to the lowest level since 2008, according to data from the Labor Department.

“The economy is in a good shape and growth is still gaining momentum,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “We are definitely in a growth cycle.”

Crude oil

Datong Coal Industry jumped 14 percent to 39.32 yuan this week in Shanghai. Jiangxi Copper Co., China’s biggest producer of the metal, climbed 7.5 percent to 17.80 yuan. China Construction Bank Corp. gained 2 to 5.69 yuan after reporting higher profits.

Crude oil for May delivery advanced 6.1 percent this week in New York on signs that global economic growth is accelerating. The London Metals Index, a measure of six metals including copper and zinc, gained 5.4 percent for the week.

“If recovery is self-sustaining then the commodities will stay well bid,” said Prasad Patkar, who helps oversee about $1.8 billion at Platypus Asset Management in Sydney. “ Base metals are holding strong, even the weaker of base metals like nickel and zinc are doing extremely well. There is an undercurrent of strength there.”

Lihir, the second-largest gold mining company on the Australian stock exchange, surged 31 percent this week to A$4.04. The company said an A$9.2 billion ($8.4 billion) cash and stock takeover from Newcrest Mining Ltd. was inadequate. Newcrest rose 2.6 percent to A$33.78.

Dai-ichi Life

Mitsubishi Corp., Japan’s largest commodities trader, rose 4.9 percent to 2,477 yen this week in Tokyo. Kobe Steel Ltd. jumped 5.7 percent to 205 yen in Tokyo after narrowing its full- year loss forecast. Dai-ichi Life, Japan’s second-largest life insurer, rose 1.6 percent to 162,500 the day after its initial price was set on April 1. Toshiba Corp., which gets 17 percent of its sales from North America, rose 3.5 percent to 504 yen.

South Korea’s government said on April 1 that overseas shipments advanced 35.1 percent in March from a year earlier, more than the 31.7 percent economists in a Bloomberg News survey estimated.

Hyundai Motor, which gets 13 percent of its sales from North America, jumped 10 percent to 128,000 won in Seoul this week as its overseas sales increased. Samsung Electronics Co., which generates more than 80 percent of its revenue outside South Korea, rose 4.5 percent to 857,000 won.

The MSCI Asia Pacific Index climbed 3.9 percent last quarter, compared with 2.7 percent for the MSCI World Index, as economic data improved. The Asian gauge’s increase was its fourth-straight quarterly advance, lifting the average price of companies to 1.66 times corporate net worth, the highest level since September.