Asian stocks gained, driving the MSCI Asia Pacific Index to a five-month high, as a bigger-than-estimated increase in US capital-goods orders bolstered optimism exports to the world's largest economy will rise.
Komatsu, the world's No. 2 maker of construction equipment, jumped 3.2 per cent in Tokyo, while Canon, a camera maker that gets 28 per cent of its sales in the Americas, advanced 2.4 per cent. BHP Billiton rallied 1.6 per cent in Sydney and Korea Zinc surged 5.1 per cent in Seoul, on higher metal prices. Hallenstein Glasson Holdings gained 1.9 per cent in Wellington after reporting a surge in profit.
The MSCI Asia Pacific Index climbed 1.1 per cent to 126.83, set to close at the highest level since April 27, as the US report fueled expectations a global economic recovery will strengthen. The gauge has climbed 8.8 per cent this month, putting it on course for its biggest monthly advance since May 2009.
“Rising capital investments in the US is a positive sign that shows companies expect demand to increase in the next few months,” said Ng Soo Nam, Singapore-based chief investment officer at Nikko Asset Management. “The stock rally may continue given that valuations are fair, but we have to watch whether the improvements in economic data are sustainable.”
Japan's Nikkei 225 Stock Average rose 1 per cent and South Korea's Kospi index gained 0.5 per cent. Australia's S&P/ASX 200 Index jumped 1.4 per cent today. New Zealand's NZX 50 Index climbed 0.7 per cent.
Capital goods
Futures on the Standard & Poor's 500 Index increased 0.2 per cent today. The index surged 2.1 per cent on Sept. 24 to the highest level since May 13 following the capital-goods report and better-than-estimated earnings at Nike Inc.
Orders for US capital equipment rebounded 4.1 per cent in August from a 5.3 per cent decline in July, figures from the Commerce Department showed on Sept. 24 in Washington. The median forecasts of 11 economists surveyed by Bloomberg was for an increase of 3 per cent.
“It's positive for the whole global economy that demand for capital investment in the private sector is strong,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities. “Demand should rise further. Capital investment is still at 80 per cent of the peak.”
Komatsu rose 3.2 per cent to 1935 yen in Tokyo and Canon advanced 2.4 per cent to 3885 yen. Honda, which generates about 46 per cent of its sales in North America, climbed 2.7 per cent to 3010 yen.
Metals, oil
Material producers accounted for 19 per cent of the MSCI Asia Pacific Index's advance. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum climbed 0.7 per cent on Sept. 24 to its highest level since April.
Korea Zinc, climbed 5.1 per cent to 299,000 won in Seoul. BHP Billiton, the world's largest mining company, rose 1.6 per cent to $39.67 and Equinox Minerals, which owns Africa's biggest copper mine, jumped 5.4 per cent to $5.69 in Sydney.
Cnooc, China's largest offshore oil producer, advanced 1.7 per cent to $HK14.50 as crude-oil futures rose 1.7 per cent to $US76.49 a barrel in New York on Sept. 24, the biggest increase in two weeks. Mitsubishi Corp, Japan's largest commodities trader, gained 2.9 per cent to 1970 yen in Tokyo.
In Wellington, Hallenstein Glasson rose 1.9 per cent to $NZ4.20 after the New Zealand-based clothing retailer said full-year profit surged 53 per cent as margins improved.
Bankruptcy protection
The MSCI Asia Pacific Index had increased 4.2 per cent in 2010 through last week, compared with gains of 3 per cent by the S&P 500 and 4 per cent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.2 times estimated earnings on average, compared with 13.8 times for the S&P and 12 times for the Stoxx.
Japanese consumer lenders slumped today after the Nikkei newspaper reported that Takefuji, Japan's third-biggest consumer lender, is preparing to file for bankruptcy protection.
Takefuji shares are suspended until the company makes a statement on the report. Calls to the company's Tokyo headquarters before regular business hours weren't answered.
Acom, which also lends to consumers, plunged 11 per cent to 1329 yen and Credit Saison slumped 2.5 per cent to 1187 yen. Promise tumbled 11 per cent to 686 yen.
In Sydney, Murchison Metals slumped 12 per cent to $1.595 after a report said that Mitsubishi Corp may pull out of a $4 billion iron-ore venture.