Asian Stocks Rise on Growth Optimism; Toyota, PetroChina Gain
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By Jonathan Burgos
May 19 (Bloomberg) -- Asian stocks rose, led by finance
companies, as U.S. banks applied to repay relief funds to the
government and a drop in borrowing costs stoked optimism the
financial crisis is easing.
Mitsubishi UFJ Financial Group Ltd. gained 5.6 percent in
Tokyo as the London interbank offered rate fell the most in two
months. Toyota Motor Corp., which gets a third of its sales in
North America, rose 2.8 percent as the yen weakened. PetroChina
Co., the nation’s biggest oil producer, surged 6 percent in Hong
Kong as Goldman Sachs Group Inc. predicted oil prices will rise.
Futures on India’s Nifty Index climbed 5 percent following a
surge in American depositary receipts on election results.
“There are indications the banking system in the U.S. and
parts of Europe are improving,” said Paul Xiradis, who manages
$8 billion as chief executive officer of Ausbil Dexia Ltd. in
Sydney. “That means the recovery will occur perhaps sooner than
expected a few months ago.”
The MSCI Asia Pacific Index advanced 2.5 percent to 99.24
at 1:16 p.m. in Tokyo, with finance companies accounting for 34
percent of the increase. The gauge has climbed 40 percent from a
more than five-year low on March 9.
“When we look back on these times, we’ll see the global
economy bottomed out in the April-June period,” said Fumiyuki
Nakanishi, a strategist at SMBC Friend Securities Co.
Japan’s Nikkei 225 Stock Average climbed 3 percent to
9,306.76. Australia’s S&P/ASX 200 Index added 2.2 percent and
Hong Kong’s Hang Seng Index jumped 3.1 percent. Trading in India
is due to resume today as a 17 percent surge in the Sensitive
Index triggered a suspension yesterday.
‘More Confident’
China Mobile Ltd. climbed 4.6 percent in Hong Kong trading
on speculation the company will seek acquisitions. Asahi Glass
Co., which makes glass substrates for plasma-display panels,
surged 8.9 percent in Tokyo after Daiwa Securities Group Inc.
recommended investors buy the stock. Filinvest Land Inc. rose
4.7 percent in Manila on brokerage upgrades.
Futures on the Standard & Poor’s 500 Index were little
changed. The gauge climbed 3 percent yesterday, the most in two
weeks, as Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley
applied to repay the combined $45 billion they received in
October from the government’s Troubled Asset Relief Program,
said people familiar with the matter.
“U.S. financial institutions paying back government aid is
a good sign that they are becoming more confident,” said Yoji
Takeda, who manages $1.1 billion at RBC Investment (Asia) Ltd.
in Hong Kong. “Macro economic data have been showing signs of
bottoming. We need to see more of this for a sustained rally.”
Borrowing Costs
Mitsubishi UFJ, Japan’s biggest publicly traded bank,
advanced 5.6 percent to 625 yen. Westpac Banking Corp.,
Australia’s biggest lender by market value, added 2.8 percent to
A$20.07. HSBC Holdings Plc, Europe’s largest lender, gained 5
percent to HK$67.50 in Hong Kong.
The three-month Libor had its biggest decline since March
19 yesterday, according to British Bankers’ Association data. It
has fallen for the past 34 days, as credit markets thawed amid
record low interest rates and rising customer deposits.
“We’ve seen credit spreads coming back dramatically and
global and Libor rates contracting,” said Ausbil’s Xiradis.
“Those are good lead indicators.”
The surge in equities signaled investors are more willing
to take risk, making the yen less attractive as a haven. The yen
depreciated against the dollar to as low as 96.62 today from
95.03 at the 3 p.m. close of stock trading in Tokyo yesterday.
Overseas Sales
Toyota rose 3.7 percent to 3,690 yen on speculation a
weaker yen will boost the value of overseas sales. Canon Inc.,
which gets 28 percent of sales in the U.S., climbed 4.8 percent
to 3,300 yen.
PetroChina jumped 6 percent to HK$8.53. Cnooc Ltd., China’s
biggest offshore oil producer, added 4.6 percent to HK$10.40.
Inpex Corp., Japan’s largest oil explorer, climbed 4.9 percent
to 704,000 yen. in Hong Kong.
Goldman Sachs upgraded PetroChina to “neutral” from
“sell,” according to a report. The brokerage raised Cnooc and
Inpex Corp. to “buy” from “neutral.”
Oil prices will average $70 a barrel next year due to a
recovery in demand and as supply remains constrained, Goldman
Sachs said. Crude oil futures gained 4.8 percent to $59.03 a
barrel in New York yesterday, the highest settlement since Nov.
11. Prices were little changed in after-hours trading.
Indian shares trading in the U.S. rallied on speculation
Prime Minister Manmohan Singh’s Congress party victory in
nationwide elections will speed up economic reforms and lure
overseas funds. The Bank of New York Mellon India ADR Index
surged 16 percent.
Overseas Acquisitions
American depositary receipts of ICICI Bank Ltd., India’s
second-largest lender, climbed 25 percent to the highest in
eight months after Morgan Stanley raised its recommendation on
the country’s financial stocks.
China Mobile climbed 4.6 percent to HK$75.60. The company’s
Chairman Wang Jianzhou said in the city today that there is a
“good opportunity” for overseas acquisitions as phone assets are
“inexpensive.”
Asahi Glass rallied 8.9 percent to 671 yen, set to close at
its highest level since Oct. 15. The shares were boosted to
“buy” from “neutral” by Daiwa analyst Yusuke Ando.
Filinvest, the fourth-largest Philippine builder, jumped
4.7 percent to 67 centavos after Credit Suisse Group and
JPMorgan Chase & Co. raised their share-price estimates.
