Asian stocks rose, paring a weekly loss, after Australia's central bank more than tripled its economic growth forecast and reports showed US unemployment claims and worker productivity beat estimates.
Macquarie Group, Australia's largest investment bank, and Westpac, the country's second-largest bank, both gained more than 2.5 per cent. James Hardie Industries, the top seller of home siding in the US, advanced 2.1 per cent. Asahi Glass, Asia's largest glassmaker, climbed 7.8 per cent in Tokyo after forecasting a narrower loss. Pioneer surged 8 per cent after the maker of car-navigation systems said it needs less funds than previously expected as earnings improve.
``Unemployment is the biggest problem in the US right now and we're seeing some positive signs there,'' Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $US56 billion.
The MSCI Asia Pacific Index gained 1 per cent to 115.82 as of 11:09 a.m. in Tokyo, with more than twice as many stocks advancing as declining. The gauge has fallen 0.5 per cent this week. It has climbed 29 per cent this year, its steepest increase since 2003, as governments around the world pumped money into the financial system to revive the economy.
Japan's Nikkei 225 Stock Average advanced 1.1 per cent to 9,827.88. Australia's S&P/ASX 200 Index climbed 1.5 per cent. The Hang Seng Index climbed 2 per cent in Hong Kong. All Asian benchmarks open for trading advanced, except in the Philippines.
US stocks surge
In the US yesterday, the Dow Jones Industrial Average surged by 2.1 per cent, the most since July. Data from the Labor Department showed initial joblessness claims dropped to 512,000 last week, the lowest since January, and worker productivity climbed at a 9.5 per cent annual rate in the third quarter, the fastest pace in six years. Labor costs also fell, signaling companies may start hiring again. Futures on the Standard & Poor's 500 Index were little changed today.
James Hardie gained 2.1 per cent to $7.15. Sony Corp., Japan's biggest exporter of televisions, climbed 2.9 per cent to 2,625 yen. Canon Inc., the world's largest camera maker, advanced 3.6 per cent to 3,470 yen.
Macquarie Group climbed 3 per cent to $49.07. Westpac gained 2.6 per cent to $26.56 and Melbourne-based BHP Billiton, the world's largest mining company, added 1.4 per cent to $36.95. Westpac and BHP were the biggest contributors to the MSCI index.
Australia's central bank said the economy will expand at more than three times the pace forecast in August, and signaled it will continue to lead the world in raising interest rates.
Australian GDP
``A further gradual lessening of monetary stimulus is likely to be required over time,'' the Reserve Bank said in Sydney today. Gross domestic product will rise 1.75 per cent this year and 3.25 per cent in 2010, the bank said. Three months ago, it forecast gains of 0.5 per cent and 2.25 per cent respectively.
Stocks in the MSCI Asia Pacific Index are valued at 22 times estimated earnings, compared with 17 times for the Standard & Poor's 500 in the US and 15 times for the Dow Jones Stoxx 600 Index in Europe.
Asahi Glass jumped 7.8 per cent to 825 yen. The company said it will book a net loss of 5 billion yen ($US55 million) this year, narrower than its previous forecast of 34 billion yen.
Pioneer surged 8 per cent to 244 yen. The company said it will raise only half of the 40 billion yen it had targeted to raise by March 2012. Separately, the company said its first-half net loss shrank 7.3 per cent to 40.9 billion yen, in line with preliminary estimates disclosed last week.
