Most Asian stocks rose, led by technology companies, after US reports showed an unexpected increase in pending home sales and improved retail sales.
Sony Corp., the electronics maker that gets 22 per cent of sales from the US, rose 1.6 per cent. James Hardie Industries SE, the biggest seller of home siding in the US, climbed 4.4 per cent in Sydney. Toyota Motor Corp., an automaker that earns about 70 per cent of its revenue abroad, increased 1.2 per cent. OZ Minerals Ltd., an Australian copper and gold producer, surged 5 per cent as commodity prices advanced.
``Investors are kind of relieved because a downward spiral in the global economy had a pause this week,'' said Naoki Fujiwara, who helps oversee about $US6 billion in Tokyo at Shinkin Asset Management Co. ``But investors won't jump into buying shares just because of that, since there is still a strong sense of uncertainty.''
The MSCI Asia Pacific Index gained 0.3 per cent to 119.63 as of 1:39 p.m. in Tokyo, extending its advanced for a third day.
The gauge advanced 2.4 per cent this week after Japan's government said it's preparing a new stimulus plan to help businesses threatened by the strong yen and as reports showed Chinese and US manufacturing, as well as the Australian economy, grew faster than economists estimated.
Japan's Nikkei 225 Stock Average gained 0.6 per cent. Taiwan's Taiex Index climbed 1.3 per cent, the most among Asia Pacific major gauges as the nation's technology companies rallied.
South Korea's Kospi Index and Hong Kong's Hang Seng Index rose at least 0.1 per cent. New Zealand's NZX 50 Index increased 0.7 per cent.
Chain store data
Futures on the Standard & Poor's 500 Index fell 0.2 per cent today. In New York yesterday, the index increased 0.9 per cent, rounding out its biggest two-day gain since early July, after a report showed pending sales of existing US houses climbed 5.2 per cent in July, compared with a 1 per cent drop economists had estimated in a Bloomberg survey.
Same-store sales at 30 US retail chains probably rose 3.5 per cent in August, according to Retail Metrics Inc., beating analysts' estimates of 2.8 per cent.
``The excessive pessimism about the US economy is coming to a halt,'' said Juichi Wako, a senior strategist at Tokyo- based Nomura Holdings Inc. ``The market was totally pessimistic, but a ray of sunlight has come out this week.''
Exporters advance
Sony, the maker of Bravia televisions, climbed 1.6 per cent to 2,466 yen. Canon Inc., a Japanese camera maker that gets 28 per cent of its revenue from the Americas, rose 0.9 per cent to 3,535 yen. James Hardie, which counts the US as its biggest market, climbed 4.4 per cent to $5.51 in Sydney.
Japanese exporters also increased as the yen depreciated to as low as 84.43 against the dollar today in Tokyo, compared with 84.17 at the close of stock trading yesterday. A weaker yen boosts overseas income at Japanese companies when converted into their home currency.
Toyota Motor, the world's biggest automaker, gained 1.2 per cent to 2,885 yen. Toshiba Corp., the world's second-biggest maker of flash memory, advanced 0.8 per cent to 387 yen.
The MSCI Asia Pacific Index has declined 2.2 per cent from a three-month high on Aug. 6 as the yen's advance to a 15-year high against the dollar and disappointing US data fueled global growth concerns. US government reports released last month showed orders for durable goods increased less than forecast in July and companies hired fewer workers in the same month.
Tech stocks climb
Stocks on the MSCI gauge are valued at an average 13.7 times estimated earnings, compared with 13.1 times for the S&P 500 Index and 11.6 times for the Stoxx Europe 600 Index.
A measure of technology companies posted the biggest advance among the 10 industry groups in the MSCI index amid expectations demand will increase.
In Taipei, Realtek Semiconductor Corp., a maker of chips used in computers, surged 6.9 per cent, the second-biggest advance on the MSCI Asia Pacific Index, to NT$67.9. Investors are speculating revenue will rise this month, said Lucas Chen, an analyst at Polaris Securities Co.
Chimei Innolux Corp., Taiwan's largest maker of liquid- crystal displays, advanced 6.9 per cent to NT$35.75, amid speculation fourth-quarter demand for consumer electronics will improve from the previous three months, said Richard Ko, an analyst at Jih Sun Securities Co.
Esprit declines
PT Indosat, Indonesia's second-biggest phone operator, surged 7.1 per cent to 4,900 rupiah after Deustche Bank AG raised the stock to ``hold' from ``sell.''
Raw-material producers climbed after crude oil for October delivery rose 1.5 per cent yesterday in New York. The London Metal Exchange Index of six metals including aluminum and copper advanced for a second day yesterday to the highest level since April 30.
OZ Minerals, which has mines in Africa and Asia, climbed 5 per cent to $1.37, its highest level since October 2008, in Sydney. Mitsubishi Corp., Japan's biggest commodities trader, rose 0.7 per cent to 1,840 yen. Inpex Corp., Japan's largest oil explorer, climbed 1.4 per cent to 406,000 yen.
Among stocks that declined today, Esprit Holdings Ltd., the biggest clothier listed in Hong Kong, tumbled 5.2 per cent to HK$40.65 after JPMorgan Chase & Co and CIMB Group Holdings Bhd. cut their ratings on the stock. The company yesterday reported full-year earnings that missed analysts' estimates.
Bloomberg News
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