Asian Stocks Rise Fourth Day on Global Economic Recovery, Yen – Businessweek

Asian stocks rose for a fourth day
as Japanese shares were boosted by the yen weakening against the
dollar amid optimism the global economy is recovering.

Nissan Motor Co. (7201) climbed 3.2 percent as the yen touched a
one-month low against the dollar. Tokyo Electric Power Co.
gained 3.4 percent after the government said it may spend 47
billion yen ($473 million) to control radiation leaks at the
Fukushima Dai-Ichi nuclear plant. Rio Tinto Group (RIO), the world’s
second-biggest miner, led raw-material producers higher, rising
3.1 percent in Sydney after metals prices advanced.

The MSCI Asia Pacific Index gained 1.3 percent to 132.67 as
of 4:03 p.m. in Hong Kong, as all 10 industry groups on the
gauge advanced. More than three shares rose for each that fell.
Futures on the Standard & Poor’s 500 Index rose 1 percent from
Aug. 30, with U.S. markets due to reopen after a holiday.

“Markets have started the week in a positive frame of
mind,” Mike Jones, a currency strategist in Wellington at Bank
of New Zealand Ltd., said by e-mail. “Manufacturing data out of
China and Europe essentially confirmed the global economy is on
the mend.”

A Chinese services industry index today confirmed the
world’s second-biggest economy is strengthening following a two-quarter slowdown, after a weekend report showed manufacturing
rose to a 16-month high. A euro-area manufacturing index
yesterday increased more than economists forecast.

Regional Gauges

Premier Li Keqiang said he’s confident China will achieve
its economic targets for this year, while Goldman Sachs Group
Inc. boosted its 2013 growth forecast for the nation to 7.6
percent from 7.4 percent. Hong Kong’s Hang Seng Index advanced 1
percent and China’s Shanghai Composite Index rose 1.2 percent.

Japan’s Topix index gained 2.8 percent, the most in a
month. South Korea’s Kospi index climbed 0.5 percent.
Singapore’s Straits Times Index was little changed and Taiwan’s
Taiex added 0.6 percent. New Zealand’s NZX 50 Index advanced 0.2
percent.

Australia’s S&P/ASX 200 Index added 0.2 percent to the
highest level in three months, with the nation’s benchmark
equities gauge maintaining gains after the central bank kept its
key interest rate at 2.5 percent.

The MSCI Asia Pacific Index rose 1.3 percent this year
through yesterday, lagging a 15 percent surge in the S&P 500
Index amid concern the Federal Reserve will taper U.S. economic
stimulus this month.

Relative Value

The Asia-Pacific gauge traded at 12.8 times estimated
earnings yesterday, compared with 14.8 times for the S&P 500 and
a multiple of 13.8 for the Stoxx Europe 600 Index, according to
data compiled by Bloomberg.

Japan’s Topix index climbed 34 percent in 2013, the best
performing among 24 developed markets tracked by Bloomberg, amid
optimism Prime Minister Shinzo Abe and the Bank of Japan can
lead the country out of deflation through unprecedented monetary
easing and regulatory reforms.

Japanese exporters advanced as the yen weakened to as low
as 99.70 per dollar, boosting the value of overseas earnings
when repatriated. Nissan gained 3.2 percent to 1,012 yen and
Toyota Motor Corp., Asia’s largest carmaker, rose 3.3 percent to
6,200 yen. Mitsubishi Motors Corp. surged 7.7 percent to 1,077
yen.

Raw-material producers climbed after the London Metal
Exchange Index of industrial metals gained 1.3 percent
yesterday, the most in two weeks. Rio Tinto, the world’s second-largest mining company, added 3.1 percent to A$61.05. BHP
Billiton Ltd., the biggest miner, increased 0.6 percent to
A$35.82. Jiangxi Copper Co., China’s No. 1 producer of the
metal, rose 2.1 percent to HK$15.52.

Radioactive Leaks

Tepco (9501), as Tokyo Electric Power is known, rose 3.4 percent
to 525 yen. Steps to address radioactive water leaks at Tepco’s
Fukushima Dai-Ichi nuclear plant, which was wrecked in the 2011
earthquake and tsunami, may include constructing an underground
frozen wall to block groundwater from flowing into basements,
Trade and Industry Minister Toshimitsu Motegi said today.

Kansai Electric Power Co. soared 8.1 percent to 1,217 yen
after a panel of seismologists and geologists said an earthquake
fault-line under the utility’s Ohi plant may not be active.

Kawasaki Kisen Kaisha Ltd. climbed 1.8 percent to 225 yen
on a report the Japanese shipper ordered four new car carriers
worth about 30 billion yen.

Digital China Holdings Ltd. (861), a distributor of technology
products, jumped 5.5 percent to HK$9.33 in Hong Kong after
receiving approval to spin off Digital China Information
Services from the city’s bourse.

To contact the reporters on this story:
Adam Haigh in Sydney at
ahaigh1@bloomberg.net;
Emma O’Brien in Wellington at
eobrien6@bloomberg.net

To contact the editor responsible for this story:
Sarah McDonald at
smcdonald23@bloomberg.net