Asian stocks rose, lifting the MSCI Asia Pacific Index higher for a second week, as fewer people than estimated applied for jobless benefits in the US and Japan's economy grew faster than anticipated.
Toyota, the world's largest automaker, gained 1.5 per cent in Tokyo. Samsung, Asia's biggest maker of chips, flat screens and mobile phones, advanced 1.9 per cent in Seoul. Canon, the world's largest camera maker, jumped 4.8 per cent after the company announced a share buyback.
The MSCI Asia Pacific Index gained 0.5 per cent to 121.13, with more than five stocks rising for each one that fell. The measure has climbed 5.4 per cent from a one-month low on Aug. 25 amid speculation the US economy will avoid slipping back into recession. The gauge advanced 1.8 per cent this week.
A “recovery in corporate earnings in the US is driving an increase in employment in the private sector,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings. “Concern about the economy has eased.”
Japan's Nikkei 225 Stock Average climbed 1.9 per cent as Prime Minister Naoto Kan unveiled details of a 920 billion yen ($US11 billion) stimulus plan to boost consumption and create jobs.
South Korea's Kospi index climbed 1.2 per cent, while Australia's S&P/ASX 200 Index rose 0.2 per cent. China's Shanghai Composite Index advanced 0.2 per cent.
US jobless claims
Futures on the Standard & Poor's 500 Index were little changed. The US index gained 0.5 per cent yesterday as a government report showed initial claims for unemployment benefits dropped by 27,000 to 451,000 last week, lower than the median estimate of 470,000 in a Bloomberg survey of economists. A separate report showed the US trade deficit narrowed in July by the most since February 2009.
In Japan, a Cabinet Office report showed that gross domestic product grew at an annualized 1.5 per cent rate in the three months ended June 30, faster than the 0.4 per cent reported last month. The figure matched the median of 21 estimates in a Bloomberg News survey of economists.
Consumer discretionary companies and technology stocks, such as Toyota and Canon, were the biggest contributors to the MSCI Asia Pacific Index's advance among the 10 industry groups, according to data compiled by Bloomberg.
Toyota climbed 1.5 per cent to 2,973 yen. Honda, a carmaker that gets more than 80 per cent of its revenue abroad, rose 0.9 per cent to 2,802 yen. Samsung, which receives about 85 per cent of its sales outside of South Korea, gained 1.9 per cent to 770,000 won in Seoul.
Canon rose 4.8 per cent to 3720 yen. The company said yesterday it will buy back as much as 1.2 per cent of its outstanding shares for as much as 50 billion yen ($US598 million).
Improved prospects for the US economy also caused the dollar to strengthen versus the yen, boosting the value of sales generated overseas in local terms for Japanese companies. The dollar appreciated to 84.14 yen from 83.64 at the close of stock trading in Tokyo yesterday.