Asian stocks rose, driving the MSCI Asia Pacific Index to its third straight weekly advance, as commodity prices climbed and US companies from AT&T to United Parcel Service raised profit forecasts.
BHP Billiton and Rio Tinto, the world's biggest and third-biggest mining companies, jumped 1.8 per cent in Sydney after oil and metals prices rose. Toyota, the world's largest automaker, advanced 2.1 per cent in Tokyo as a weaker yen boosted the outlook for export earnings. Canon, which gets 27 per cent of its revenue in the Americas, climbed 3.4 per cent.
''Company earnings aren't bad in the US,'' said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings. ''Investors will focus on the favorable fundamentals and buy shares as they have been too pessimistic.''
The MSCI Asia Pacific Index gained 1.1 per cent, extending its increase this week to 0.5 per cent. The gauge has slumped 9.5 per cent from this year's high on April 15 as Europe's debt crisis and China's steps to curb property prices fueled concern that global economic growth will slow.
Japan's Nikkei 225 Stock Average climbed 2 per cent, while Australia's S&P/ASX 200 Index gained 1.7 per cent. New Zealand's NZX 50 Index rose 0.4 per cent. South Korea's Kospi increased 0.7 per cent.
Futures on the US Standard & Poor's 500 increased 0.2 per cent today. The index jumped 2.3 per cent yesterday, the most in two weeks, as the higher profit forecasts from AT&T and UPS bolstered optimism for US corporate earnings.