April 5 (Bloomberg) -- Asian stocks rose, led by companies reliant on sales in North America, as U.S. job reports boosted confidence the global economy is recovering.
Canon Inc., the world’s biggest camera maker, climbed 2.4 percent as the yen weakened against the dollar, lifting the earnings outlook for Japanese exporters. Toshiba Corp., Japan’s biggest memory-chip maker, gained 0.8 percent in Tokyo after the Nikkan Kogyo newspaper reported the company will double its annual production capacity of electric-vehicle motors. Samsung Electronics Co. rose 1.4 percent in Seoul after the Maeil Business Newspaper reported the company will expand a chip- making factory.
“There is increasing growth optimism now given that the job situation in the U.S. is getting a little more relaxed,” said Roger Groebli, Singapore-based head of financial-market analysis at LG Capital Management, part of the group that oversees $84 billion. “Exporters will benefit from that.”
The MSCI Asia Pacific Index rose 0.2 percent to 126.76 as of 10:34 a.m. in Tokyo, with about three stocks advancing for each one that declined. The gauge has climbed 11 percent from a more-than-two-month low on Feb. 8 as a Federal Reserve pledge to keep borrowing costs low and a Japanese bank-lending program eased concern that budget deficits in Europe will derail the revival in the global economy.
Japan’s Nikkei 225 Stock Average climbed 0.5 percent. Singapore’s Straits Times Index increased 0.6 percent and Malaysia’s Kuala Lumpur Composite Index rose 0.4 percent. Markets in Australia, Hong Kong, China, Taiwan and New Zealand are closed today for a holiday.
U.S. Payrolls
U.S. markets resume trading today after a holiday on April 2. Futures on the Standard & Poor’s 500 Index climbed 0.5 percent after figures from the Labor Department showed U.S. payrolls rose for the third time in the past five months and the most since March 2007. The unemployment rate held at 9.7 percent.
“It’s a good, solid report,” Treasury Secretary Timothy F. Geithner said in a Bloomberg Television interview in New York. “It shows we’re getting stronger, and the economy is now creating jobs.”
The MSCI Asia Pacific Index added 1.7 percent last week as economic reports spurred confidence in the global recovery, boosting commodity prices. Stocks in the MSCI measure trade at 16.5 times estimated earnings, compared with 15.1 times for the Standard & Poor’s 500 Index in the U.S. and 13.2 times for the Stoxx Europe 600 Index.
Exporters in Japan advanced on optimism the weaker yen will boost the value of overseas sales at when converted into the companies’ home currency. The yen depreciated to as low as 94.79 per dollar today from 93.85 at the 3 p.m. close of stock trading on April 2.
Increased Output
Canon, which gets 28 percent of its revenue in the Americas, climbed 2.4 percent to 4,505 yen. Toyota Motor Corp., which derives 31 percent of its revenue in North America, increased 1.1 percent to 3,815 yen.
Toshiba increased 0.8 percent to 508 yen. The company will double its annual production capacity of electric-vehicle motors to 120,000 units by the end of March 2012, the Nikkan Kogyo newspaper said.
Samsung Electronics gained 1.4 percent to 869,000 won after Maeil Business Newspaper reported the company will add a new semiconductor chip line at its factory in Hwaseong, South Korea.
The company, Asia’s biggest chipmaker, also rose after the price of the benchmark DDR2 dynamic random access memory, or DRAM, chip rose 1.7 percent to $3.04 on April 2, ending a four- day decline, according to Dramexchange Technology Inc.
Hynix Semiconductor Inc., the world’s second-largest computer-memory chipmaker, advanced 1.6 percent to 28,600 won.
Sunday, April 4, 2010
Service Industries Probably Accelerated: U.S. Economy Preview
April 4 (Bloomberg) -- Service industries probably expanded in March at the fastest pace since 2007, a sign the U.S. recovery is broadening as the job market turns around, economists said before reports this week.
The Institute for Supply Management’s index of non- manufacturing businesses, which make up about 90 percent of the economy, rose to 54, according to the median forecast in a Bloomberg News survey before figures tomorrow. Readings of 50 signal expansion. Another report may show fewer Americans signed contracts to buy previously owned homes in February, indicating real estate remains the economy weak spot.
The manufacturing rebound that helped the U.S. dig out of the worst recession since the 1930s is starting to extend to other industries, benefiting companies such as Carnival Corp. and Best Buy Inc. A government report last week showed employment rose 162,000 in March, the most in three years, making a sustained recovery more likely.
“Services are making a slow and steady comeback,” said David Semmens, an economist at Standard Chartered Bank in New York. “The job gains are encouraging. We’re going to be looking for momentum.”
The Tempe, Arizona-based group’s figures would follow a reading of 53 for February. The estimates of 63 economists surveyed ranged from 51 to 55. The projected reading would be the highest since June 2007.
The unemployment rate was 9.7 percent in March for a third month, the Labor Department reported April 2. Payrolls rose for the third time in the past five months and by the most since March 2007, signaling companies are becoming more confident that the economy is healing.
Reflecting the improvement in the services industry, the Standard & Poor’s Supercomposite Retailing Index has climbed 11 percent this year, outpacing a 5.6 percent gain in the broader S&P 500 gauge.
Best Buy Sales
Best Buy, the largest U.S. electronics retailer, is among companies seeing demand pick up. The Richfield, Minnesota-based merchant last month reported fourth-quarter profit that exceeded analysts’ estimates as discounts helped boost sales.
Carnival, the biggest cruise-line operator, last month raised its full-year profit forecast as ticket prices rebounded from 2009’s lows amid more bookings.
“The booking environment continued to improve,” Chief Executive Officer Micky Arison said in a March 23 statement. “We returned to top line revenue growth after a challenging 2009.”
Housing, which helped trigger the recession, has yet to show signs of a sustained rebound. The National Association of Realtors’ index of purchase agreements, or pending home sales, probably fell 1 percent in February after a 7.6 percent drop the prior month, according to the survey median. The report is also due tomorrow.
Fed Minutes
Minutes of the Federal Reserve’s March meeting, due April 6, may shed more light on policy makers’ assessment of the economy at the time they pledged to keep the benchmark interest rate “exceptionally low” for an “extended period.”
The Fed may report on April 7 that consumer credit increased in February for the second straight month. Economists also project Commerce Department figures on April 9 may show inventories at wholesalers rose in February for the first time in three months.
Bloomberg Survey
================================================================
==
Release Period Prior Median
Indicator Date Value Forecast
================================================================
==
ISM NonManu Index 4/5 March 53.0 54.0
Pending Homes MOM% 4/5 Feb. -7.6% -1.0%
Cons. Credit $ Blns 4/7 Feb. 5.0 1.2
Initial Claims ,000’s 4/8 3-Apr 439 435
Cont. Claims ,000’s 4/8 27-Mar 4662 4650
Whlsale Inv. MOM% 4/9 Feb. -0.1% 0.4%
=========================================================
The Institute for Supply Management’s index of non- manufacturing businesses, which make up about 90 percent of the economy, rose to 54, according to the median forecast in a Bloomberg News survey before figures tomorrow. Readings of 50 signal expansion. Another report may show fewer Americans signed contracts to buy previously owned homes in February, indicating real estate remains the economy weak spot.
The manufacturing rebound that helped the U.S. dig out of the worst recession since the 1930s is starting to extend to other industries, benefiting companies such as Carnival Corp. and Best Buy Inc. A government report last week showed employment rose 162,000 in March, the most in three years, making a sustained recovery more likely.
“Services are making a slow and steady comeback,” said David Semmens, an economist at Standard Chartered Bank in New York. “The job gains are encouraging. We’re going to be looking for momentum.”
The Tempe, Arizona-based group’s figures would follow a reading of 53 for February. The estimates of 63 economists surveyed ranged from 51 to 55. The projected reading would be the highest since June 2007.
The unemployment rate was 9.7 percent in March for a third month, the Labor Department reported April 2. Payrolls rose for the third time in the past five months and by the most since March 2007, signaling companies are becoming more confident that the economy is healing.
Reflecting the improvement in the services industry, the Standard & Poor’s Supercomposite Retailing Index has climbed 11 percent this year, outpacing a 5.6 percent gain in the broader S&P 500 gauge.
Best Buy Sales
Best Buy, the largest U.S. electronics retailer, is among companies seeing demand pick up. The Richfield, Minnesota-based merchant last month reported fourth-quarter profit that exceeded analysts’ estimates as discounts helped boost sales.
Carnival, the biggest cruise-line operator, last month raised its full-year profit forecast as ticket prices rebounded from 2009’s lows amid more bookings.
“The booking environment continued to improve,” Chief Executive Officer Micky Arison said in a March 23 statement. “We returned to top line revenue growth after a challenging 2009.”
Housing, which helped trigger the recession, has yet to show signs of a sustained rebound. The National Association of Realtors’ index of purchase agreements, or pending home sales, probably fell 1 percent in February after a 7.6 percent drop the prior month, according to the survey median. The report is also due tomorrow.
Fed Minutes
Minutes of the Federal Reserve’s March meeting, due April 6, may shed more light on policy makers’ assessment of the economy at the time they pledged to keep the benchmark interest rate “exceptionally low” for an “extended period.”
The Fed may report on April 7 that consumer credit increased in February for the second straight month. Economists also project Commerce Department figures on April 9 may show inventories at wholesalers rose in February for the first time in three months.
Bloomberg Survey
================================================================
==
Release Period Prior Median
Indicator Date Value Forecast
================================================================
==
ISM NonManu Index 4/5 March 53.0 54.0
Pending Homes MOM% 4/5 Feb. -7.6% -1.0%
Cons. Credit $ Blns 4/7 Feb. 5.0 1.2
Initial Claims ,000’s 4/8 3-Apr 439 435
Cont. Claims ,000’s 4/8 27-Mar 4662 4650
Whlsale Inv. MOM% 4/9 Feb. -0.1% 0.4%
=========================================================
Gulf Stocks: ADCB, Al-Madina, Kuwait Finance, Kuwait & Gulf
April 4 (Bloomberg) -- The Bahrain All Share Index advanced 1.4 percent to 1563.67, the highest level since October. Qatar’s Doha Securities Market 20 Index increased 1.3 percent.
The following stocks rose or fell in the Gulf. Symbols are in parentheses.
Abu Dhabi Commercial Bank PJSC (ADCB UH) climbed 2.4 percent to 2.14 dirhams, the highest since Nov. 25. The United Arab Emirates’ third-biggest bank by assets said it “concluded” a treasury joint venture with Australia’s Macquarie Bank Ltd. Its infrastructure venture with Macquarie, which was set up in 2005, remains in place.
Al-Madina for Finance and Investment Co. SAKC (ALMADINA KK) rose 3.1 percent, the most in two weeks, to 67 fils. The Kuwaiti Islamic investment company said it is appealing against an arbitration initiated by Global Investment House KSCC and the result won’t affect its financial results, according to a statement to the local bourse. Global is seeking $10 million from Al-Madina.
Islamic Arab Insurance Co. (SALAMA UH) declined 5.3 percent, the most since Jan. 26, to 0.90 dirham. The U.A.E.’s Islamic insurer known as Salama said its board recommended paying no dividend for 2009.
Kuwait Finance and Investment Co. (KFIC KK) declined 1.8 percent to 112 fils, the lowest since Feb. 15. The Kuwait-based investment banking and asset management firm reported a full- year loss of 12.5 million dinars ($43.3 million) from 25.3 million dinars in 2008, according to a statement to the stock exchange.
Kuwait & Gulf Link Transport Co. (KGL KK) increased 7.4 percent to 365 fils, the highest level in a week. The cargo shipper said it won a 3.9 million-dinar contract from the government, according to a statement to the local bourse.
The following stocks rose or fell in the Gulf. Symbols are in parentheses.
Abu Dhabi Commercial Bank PJSC (ADCB UH) climbed 2.4 percent to 2.14 dirhams, the highest since Nov. 25. The United Arab Emirates’ third-biggest bank by assets said it “concluded” a treasury joint venture with Australia’s Macquarie Bank Ltd. Its infrastructure venture with Macquarie, which was set up in 2005, remains in place.
Al-Madina for Finance and Investment Co. SAKC (ALMADINA KK) rose 3.1 percent, the most in two weeks, to 67 fils. The Kuwaiti Islamic investment company said it is appealing against an arbitration initiated by Global Investment House KSCC and the result won’t affect its financial results, according to a statement to the local bourse. Global is seeking $10 million from Al-Madina.
Islamic Arab Insurance Co. (SALAMA UH) declined 5.3 percent, the most since Jan. 26, to 0.90 dirham. The U.A.E.’s Islamic insurer known as Salama said its board recommended paying no dividend for 2009.
Kuwait Finance and Investment Co. (KFIC KK) declined 1.8 percent to 112 fils, the lowest since Feb. 15. The Kuwait-based investment banking and asset management firm reported a full- year loss of 12.5 million dinars ($43.3 million) from 25.3 million dinars in 2008, according to a statement to the stock exchange.
Kuwait & Gulf Link Transport Co. (KGL KK) increased 7.4 percent to 365 fils, the highest level in a week. The cargo shipper said it won a 3.9 million-dinar contract from the government, according to a statement to the local bourse.
Friday, April 2, 2010
Asian Currencies Gain This Week on Recovery, Stocks Investment
April 3 (Bloomberg) -- Malaysia’s ringgit and South Korea’s won led gains in Asian currencies this week after data showed an economic recovery is gathering pace, encouraging funds abroad to raise holdings of regional shares.
The Bloomberg-JPMorgan Asia Dollar Index reached the highest level in 19 months as Korea and Thailand reported increases in factory output and exports, while China’s manufacturing expanded at a faster rate. The ringgit advanced to its strongest in 20 months before a government report yesterday that showed overseas sales of the nation’s goods rose for a third month in February.
“Investors put money into stocks and Asia is favored for its stronger growth prospects, boosting regional currencies,” said Hideki Hayashi, a global economist at Mizuho Securities Co. in Tokyo. “Risk appetite is growing with improvements in U.S. economic data.”
The ringgit appreciated 1.7 percent this week to 3.2490 per dollar in Kuala Lumpur and reached 3.2437, the highest level since July 2008, according to data compiled by Bloomberg. The won rose 1.2 percent to 1,125.85.
The Asia Dollar Index increased 0.4 percent from March 26, while the MSCI Asia-Pacific Index of regional equities rallied 1.7 percent and posted its best close in 11 weeks. Global investors bought a net $921 million of Taiwan shares in the four days through April 1, $450 million in Korea and $200 million in Thailand, stock exchange data shows.
‘Investors’ Trust’
Malaysia’s currency gained for a third day before a U.S. Labor Department report that showed employers in the world’s biggest economy increased hiring in March by the most in three years. Malaysia’s trade ministry said yesterday exports rose 18 percent in February from a year earlier, compared with a 25 percent increase forecast in a Bloomberg News survey. January’s 37 percent gain was the most in more than 11 years.
“Malaysia has investors’ trust in terms of stable growth prospects, supporting the appreciation in the ringgit,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ Bhd. in Kuala Lumpur. “With good data in the U.S., investors’ appetite for riskier assets may increase, which will also help boost the currency.”
The ringgit may strengthen by about 4.8 percent to 3.10 by year-end, Banno forecast.
U.S. non-farm payrolls climbed by 162,000 in March, the Labor Department said yesterday in Washington.
Korea Investment
Korea’s won had its best weekly gain in a month after a government report on April 1 showed exports rose 35.1 percent in March, compared with 30.5 percent in the previous month and beating the median 31.7 percent forecast in Bloomberg’s survey.
The won touched 1,122.15 per dollar, the strongest level since Jan. 19, as funds based abroad bought more Korean shares than they sold on all but one day since the end of February, according to exchange data. The Kospi index was up 1.5 percent this week.
“Foreigners are buying stocks, and there is no reason for the won to weaken right now,” said Kim Yule, a Seoul-based currency trader at BNP Paribas SA. “The won will probably stay at the level of 1,120 for some time.”
Taiwan’s dollar posted its biggest five-day gain in three weeks as international investors increased holdings of the island’s equities on speculation a trade accord with China will boost earnings.
China Trade Pact
Taiwan and the mainland held talks on a planned Economic Cooperation Framework Agreement this week, with President Ma Ying-jeou pushing for lower import tariffs. China and Hong Kong account for about 40 percent of Taiwan’s exports.
“The Taiwan dollar is still on a rising trend,” said Henry Lin, a currency trader at Taiwan Shin Kong Commercial Bank in Taipei. “The China trade issue is attracting overseas funds.”
The local dollar strengthened 0.1 percent to NT$31.759 against its U.S. counterpart, according to Taipei Forex Inc. It advanced 0.4 percent this week.
Elsewhere in the region, the Thai baht appreciated 0.2 percent in the five days to 32.36 per dollar, Indonesia’s rupiah climbed 0.5 percent to 9,080, and the Vietnamese dong rose 0.1 percent to 19,075. China’s yuan was little changed at 6.8256.
The Bloomberg-JPMorgan Asia Dollar Index reached the highest level in 19 months as Korea and Thailand reported increases in factory output and exports, while China’s manufacturing expanded at a faster rate. The ringgit advanced to its strongest in 20 months before a government report yesterday that showed overseas sales of the nation’s goods rose for a third month in February.
“Investors put money into stocks and Asia is favored for its stronger growth prospects, boosting regional currencies,” said Hideki Hayashi, a global economist at Mizuho Securities Co. in Tokyo. “Risk appetite is growing with improvements in U.S. economic data.”
The ringgit appreciated 1.7 percent this week to 3.2490 per dollar in Kuala Lumpur and reached 3.2437, the highest level since July 2008, according to data compiled by Bloomberg. The won rose 1.2 percent to 1,125.85.
The Asia Dollar Index increased 0.4 percent from March 26, while the MSCI Asia-Pacific Index of regional equities rallied 1.7 percent and posted its best close in 11 weeks. Global investors bought a net $921 million of Taiwan shares in the four days through April 1, $450 million in Korea and $200 million in Thailand, stock exchange data shows.
‘Investors’ Trust’
Malaysia’s currency gained for a third day before a U.S. Labor Department report that showed employers in the world’s biggest economy increased hiring in March by the most in three years. Malaysia’s trade ministry said yesterday exports rose 18 percent in February from a year earlier, compared with a 25 percent increase forecast in a Bloomberg News survey. January’s 37 percent gain was the most in more than 11 years.
“Malaysia has investors’ trust in terms of stable growth prospects, supporting the appreciation in the ringgit,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ Bhd. in Kuala Lumpur. “With good data in the U.S., investors’ appetite for riskier assets may increase, which will also help boost the currency.”
The ringgit may strengthen by about 4.8 percent to 3.10 by year-end, Banno forecast.
U.S. non-farm payrolls climbed by 162,000 in March, the Labor Department said yesterday in Washington.
Korea Investment
Korea’s won had its best weekly gain in a month after a government report on April 1 showed exports rose 35.1 percent in March, compared with 30.5 percent in the previous month and beating the median 31.7 percent forecast in Bloomberg’s survey.
The won touched 1,122.15 per dollar, the strongest level since Jan. 19, as funds based abroad bought more Korean shares than they sold on all but one day since the end of February, according to exchange data. The Kospi index was up 1.5 percent this week.
“Foreigners are buying stocks, and there is no reason for the won to weaken right now,” said Kim Yule, a Seoul-based currency trader at BNP Paribas SA. “The won will probably stay at the level of 1,120 for some time.”
Taiwan’s dollar posted its biggest five-day gain in three weeks as international investors increased holdings of the island’s equities on speculation a trade accord with China will boost earnings.
China Trade Pact
Taiwan and the mainland held talks on a planned Economic Cooperation Framework Agreement this week, with President Ma Ying-jeou pushing for lower import tariffs. China and Hong Kong account for about 40 percent of Taiwan’s exports.
“The Taiwan dollar is still on a rising trend,” said Henry Lin, a currency trader at Taiwan Shin Kong Commercial Bank in Taipei. “The China trade issue is attracting overseas funds.”
The local dollar strengthened 0.1 percent to NT$31.759 against its U.S. counterpart, according to Taipei Forex Inc. It advanced 0.4 percent this week.
Elsewhere in the region, the Thai baht appreciated 0.2 percent in the five days to 32.36 per dollar, Indonesia’s rupiah climbed 0.5 percent to 9,080, and the Vietnamese dong rose 0.1 percent to 19,075. China’s yuan was little changed at 6.8256.
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.
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.
Thursday, April 1, 2010
Manufacturing From China to U.S. Expanding in Global Recovery
April 2 (Bloomberg) -- Factories from China to the U.S. accelerated in March, pointing to a rebound in international trade that is contributing to a global economic recovery.
Manufacturing in China grew for a 13th month and U.S. factories expanded the most since July 2004, reports showed. Business sentiment in Japan rose to the highest since 2008, while factories in Britain and the euro region stepped up production.
Surging economic growth in China is helping pull the global economy out of its worst slump in more than six decades and benefiting companies from Honeywell International Inc. in the U.S. to Germany’s Bayerische Motoren Werke AG. Stocks around the world rallied after the manufacturing figures showed the expansion may be gaining strength.
“It is a global growth story, clearly a revival of global trade,” said Jay Feldman, an economist at Credit Suisse in New York. “U.S. manufacturing is firing on all cylinders, with exports doing some of the heavy lifting. It’s a sign global growth is strong.”
The Purchasing Managers’ Index for China rose to a seasonally adjusted 55.1 in March from 52 the previous month, Hong Kong-based Li & Fung Group said yesterday. Readings above 50 signal expansion.
In the U.S., the Institute for Supply Management’s factory index rose to 59.6, exceeding the most optimistic forecast in a Bloomberg News survey of 77 economists, from 56.5 in February. The Tempe, Arizona-based group’s gauge of exports rose to the highest level since 1989, while orders and production increased at faster rates.
Japan, Europe
The Tankan index of sentiment in Japan improved to minus 14 in March from minus 25 in December, while Europe’s factories expanded at the fastest pace in more than three years. A gauge of U.K. manufacturing rose to a 15-year high.
The MSCI Asia Pacific Index climbed 0.9 percent to 126.25 yesterday. The Stoxx Europe 600 increased 1.3 percent to 267.02 at 4:41 p.m. yesterday in London, while the Standard & Poor’s 500 Index advanced 0.7 percent to 1,177.96 at 12:37 p.m. in New York on April 1.
The International Monetary Fund forecasts the global economy will grow 3.9 percent this year after a 0.8 percent contraction in 2009 with China expanding 10 percent, almost five times the pace expected for the U.S. The euro area economy may expand 1 percent, the IMF forecast in January.
In China, the acceleration may buttress the case for Premier Wen Jiabao’s government to consider allowing gains in the yuan for the first time since mid-2008 and raising interest rates. Central bank Governor Zhou Xiaochuan said last month that “sooner or later” China will end the contingency measures it adopted during the global recession.
Led by China
“There’s a very strong pick-up in global trade,” said Jacques Cailloux, chief European economist at Royal Bank of Scotland Group Plc in London. “It’s a cycle that started in Asia led by China that’s now filtering through to developed economies and Europe in particular.”
Manufacturing in Germany, Europe’s biggest economy, expanded at the fastest pace in 14 years, yesterday’s data showed. In Switzerland, a measure of manufacturing activity jumped last month to the highest in more than three years, while Ireland’s manufacturing industry grew for the first time since 2007.
In the U.S., the ISM’s gauge of export orders jumped to 61.5 in March, the highest since September 1989, from 56.5. The production index rose to 61.1 from 58.4 the prior month, and the new orders gauge increased to 61.5 from 59.5.
Honeywell, the Morris Township, New Jersey-based maker of controls for planes and buildings, this week raised its first- quarter profit forecast on stronger orders and cost controls. BMW, the world’s biggest maker of luxury vehicles, last month forecast 2010 deliveries to rise with Chinese sales projected to show a “strong double-digit” percentage gain.
“The expansion we’re seeing is largely an export story,” said David Tinsley, an economist at National Australia Bank in London. “So, even now you’ve got very robust rates of growth according to these PMI indices, it’s just covering some of the level lost. It’s not forging a new growth trajectory.”
Manufacturing in China grew for a 13th month and U.S. factories expanded the most since July 2004, reports showed. Business sentiment in Japan rose to the highest since 2008, while factories in Britain and the euro region stepped up production.
Surging economic growth in China is helping pull the global economy out of its worst slump in more than six decades and benefiting companies from Honeywell International Inc. in the U.S. to Germany’s Bayerische Motoren Werke AG. Stocks around the world rallied after the manufacturing figures showed the expansion may be gaining strength.
“It is a global growth story, clearly a revival of global trade,” said Jay Feldman, an economist at Credit Suisse in New York. “U.S. manufacturing is firing on all cylinders, with exports doing some of the heavy lifting. It’s a sign global growth is strong.”
The Purchasing Managers’ Index for China rose to a seasonally adjusted 55.1 in March from 52 the previous month, Hong Kong-based Li & Fung Group said yesterday. Readings above 50 signal expansion.
In the U.S., the Institute for Supply Management’s factory index rose to 59.6, exceeding the most optimistic forecast in a Bloomberg News survey of 77 economists, from 56.5 in February. The Tempe, Arizona-based group’s gauge of exports rose to the highest level since 1989, while orders and production increased at faster rates.
Japan, Europe
The Tankan index of sentiment in Japan improved to minus 14 in March from minus 25 in December, while Europe’s factories expanded at the fastest pace in more than three years. A gauge of U.K. manufacturing rose to a 15-year high.
The MSCI Asia Pacific Index climbed 0.9 percent to 126.25 yesterday. The Stoxx Europe 600 increased 1.3 percent to 267.02 at 4:41 p.m. yesterday in London, while the Standard & Poor’s 500 Index advanced 0.7 percent to 1,177.96 at 12:37 p.m. in New York on April 1.
The International Monetary Fund forecasts the global economy will grow 3.9 percent this year after a 0.8 percent contraction in 2009 with China expanding 10 percent, almost five times the pace expected for the U.S. The euro area economy may expand 1 percent, the IMF forecast in January.
In China, the acceleration may buttress the case for Premier Wen Jiabao’s government to consider allowing gains in the yuan for the first time since mid-2008 and raising interest rates. Central bank Governor Zhou Xiaochuan said last month that “sooner or later” China will end the contingency measures it adopted during the global recession.
Led by China
“There’s a very strong pick-up in global trade,” said Jacques Cailloux, chief European economist at Royal Bank of Scotland Group Plc in London. “It’s a cycle that started in Asia led by China that’s now filtering through to developed economies and Europe in particular.”
Manufacturing in Germany, Europe’s biggest economy, expanded at the fastest pace in 14 years, yesterday’s data showed. In Switzerland, a measure of manufacturing activity jumped last month to the highest in more than three years, while Ireland’s manufacturing industry grew for the first time since 2007.
In the U.S., the ISM’s gauge of export orders jumped to 61.5 in March, the highest since September 1989, from 56.5. The production index rose to 61.1 from 58.4 the prior month, and the new orders gauge increased to 61.5 from 59.5.
Honeywell, the Morris Township, New Jersey-based maker of controls for planes and buildings, this week raised its first- quarter profit forecast on stronger orders and cost controls. BMW, the world’s biggest maker of luxury vehicles, last month forecast 2010 deliveries to rise with Chinese sales projected to show a “strong double-digit” percentage gain.
“The expansion we’re seeing is largely an export story,” said David Tinsley, an economist at National Australia Bank in London. “So, even now you’ve got very robust rates of growth according to these PMI indices, it’s just covering some of the level lost. It’s not forging a new growth trajectory.”
Asian Stocks Rise as U.S. Data Fuel Growth Hopes; Toshiba Gains
April 2 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index higher for the week, after the U.S. reported a drop in jobless benefit claims and growth in manufacturing.
Toshiba Corp., which gets 17 percent of its sales from North America, climbed 3.5 percent. Toyota Motor Corp. gained 1.1 percent in Tokyo, leading automakers higher after Autodata Corp. said Japanese and South Korean automakers boosted sales in the U.S. in March. STX Pan Ocean Co., South Korea’s biggest bulk carrier, lost 0.7 percent after shipping prices fell.
The MSCI Asia Pacific Index advanced 0.4 percent to 126.64 as of 10:27 a.m. in Tokyo, taking its gain this week to 1.7 percent. The gauge has climbed 11 percent from a more-than-two- month low on Feb. 8 as improving U.S. jobs data, a Federal Reserve pledge to keep borrowing costs low and a Japanese bank- lending program eased concern that budget deficits in Europe will derail the revival in the global economy.
“The global macroeconomic recovery is behind the current uptrend in equities,” Tomomi Yamashita, a Tokyo-based fund manager at Shinkin Asset Management Co., which oversees the equivalent of $3.8 billion. “That trend is unlikely to change though the market is getting overheated.”
Japan’s Nikkei 225 Stock Average rose 0.4 percent, taking its climb this week to 2.6 percent. South Korea’s Kospi Index was little changed. Markets in Australia, Hong Kong, New Zealand, Singapore, India, the Philippines and Indonesia are closed today for holidays.
Futures on the Standard & Poor’s 500 Index fell 0.2 percent. The gauge increased 0.7 percent to an 18-month high yesterday as signs of strength in global manufacturing and a drop in jobless claims boosted optimism in the economy.
Toshiba Corp., which gets 17 percent of its sales from North America, climbed 3.5 percent. Toyota Motor Corp. gained 1.1 percent in Tokyo, leading automakers higher after Autodata Corp. said Japanese and South Korean automakers boosted sales in the U.S. in March. STX Pan Ocean Co., South Korea’s biggest bulk carrier, lost 0.7 percent after shipping prices fell.
The MSCI Asia Pacific Index advanced 0.4 percent to 126.64 as of 10:27 a.m. in Tokyo, taking its gain this week to 1.7 percent. The gauge has climbed 11 percent from a more-than-two- month low on Feb. 8 as improving U.S. jobs data, a Federal Reserve pledge to keep borrowing costs low and a Japanese bank- lending program eased concern that budget deficits in Europe will derail the revival in the global economy.
“The global macroeconomic recovery is behind the current uptrend in equities,” Tomomi Yamashita, a Tokyo-based fund manager at Shinkin Asset Management Co., which oversees the equivalent of $3.8 billion. “That trend is unlikely to change though the market is getting overheated.”
Japan’s Nikkei 225 Stock Average rose 0.4 percent, taking its climb this week to 2.6 percent. South Korea’s Kospi Index was little changed. Markets in Australia, Hong Kong, New Zealand, Singapore, India, the Philippines and Indonesia are closed today for holidays.
Futures on the Standard & Poor’s 500 Index fell 0.2 percent. The gauge increased 0.7 percent to an 18-month high yesterday as signs of strength in global manufacturing and a drop in jobless claims boosted optimism in the economy.
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