Asian stocks climbed for a second day as higher metal prices boosted mining companies and JPMorgan Chase boosted investment ratings on Japan's largest banks.
Jiangxi Copper, China's biggest producer of the metal, climbed 5.2 per cent in Hong Kong as copper prices jumped after an earthquake in Chile cut supplies from the world's No. 1 producer of the metal. Mitsubishi UFJ Financial Group and Mizuho Financial Group advanced more than 2 per cent in Tokyo following the JPMorgan upgrades. Toll Holdings, Australia's largest trucking and freight company, gained 5.7 per cent after a report showed the country's manufacturing expanded at the fastest pace in more than two years.
“Risk money is flowing into commodities such as crude oil and nonferrous metals after the earthquake,” said Yoshihiro Ito, a senior strategist at Tokyo-based Okasan Asset Management.
“Bank shares have lagged behind the market, so they should rise.”
The MSCI Asia Pacific Index gained 0.7 per cent to 118.92 in Tokyo, with more than three stocks advancing for each that declined. The gauge has lost 1.3 per cent this year on speculation central banks will start withdrawing stimulus measures and that Greece will struggle to curb its deficit.
Japan's Nikkei 225 Stock Average gained 0.5 per cent to 10,174.44. Australia's S&P/ASX 200 Index climbed 0.6 per cent in Sydney following the manufacturing survey by Australian Industry Group and PricewaterhouseCoopers. Toll Holdings climbed 6 per cent to $7.21. Brambles Ltd., the world's biggest supplier of pallets, rose 2.3 per cent to $7.10.
China, metals
China's Shanghai Composite Index advanced 0.7 per cent after a government report showed the nation's manufacturing expanded in February at the slowest pace in a year. Hong Kong's Hang Seng Index gained 1.6 per cent.
Copper futures for March delivery jumped 4.9 per cent today. The London Metal Exchange Index of six metals including copper and zinc advanced 2.8 per cent on Feb. 26. Crude oil for April delivery increased $US1.49 to settle at $US79.66 a barrel in New York.
Jiangxi Copper climbed 5.2 per cent to HK$16.60. Oz Minerals, an Australian producer of copper and gold, gained 4.8 per cent to $1.09. Sumitomo Metal Mining, a producer of gold and copper, rose 2.4 per cent to 1292 yen in Tokyo.
Copper rose the most in 11 months on concern the supply of metal may be cut after the earthquake shut the Chilean mines of Codelco, the world's largest copper producer. Codelco said it will meet supply contracts as it gradually restarts operations.
US futures rise
Futures on the Standard & Poor's 500 Index advanced 0.3 per cent. The index rose 0.1 per cent on February 26 in New York after reports showed the US economy expanded at a 5.9 per cent annual rate in the fourth quarter, more than the government had reported in January. The Institute for Supply Management-Chicago said its business barometer climbed to 62.6 from 61.5 in January, a bigger increase than economists forecast and the highest level since 2005.
Shares of Japanese banks gained after JPMorgan upgraded the ratings for the country's three biggest banks to “overweight” from “neutral.” Mitsubishi UFJ, Japan's No. 1 lender by market value, increased 2.5 per cent to 460 yen. Sumitomo Mitsui Financial Group, the No. 2, rose 1.5 per cent to 2898 yen. Mizuho Financial Group, the third-largest, advanced 3.5 per cent to 178 yen.
