Wednesday, April 2, 2008

Asia Stocks Advance for Second Day; BHP Billiton, Posco Gain

By Chen Shiyin and Patrick Rial

April 3 (Bloomberg) -- Asian stocks rose for a second day, led by commodity-related companies after copper and oil prices gained and UBS AG said Posco will boost profit.

BHP Billiton Ltd., the world's largest mining company, rose to a one-month high in Sydney, while Posco, Asia's third-largest steelmaker, surged the most in six months. Toshiba Corp. climbed after saying it's in talks to build nuclear reactors in the U.S.

The MSCI Asia Pacific Index added 0.9 percent to 144.48 as of 1:04 p.m. in Tokyo, following a 3.2 percent surge yesterday that lifted the benchmark to a one-month high. A measure of raw- materials producers posted the biggest advance among the index's 10 industry groups.

``I'm a strong believer in the commodity supercycle and particularly bullish on soft commodities like iron and coal that are part of the China and India story,'' said Masahiko Ejiri, who helps manage $26 billion at Mizuho Asset Management Co.

Japan's Nikkei 225 Stock Average added 0.8 percent to 13,297.75, after earlier falling as much as 0.4 percent. Toyota Motor Corp. declined after brokerages downgraded Japanese carmakers on concern their U.S. sales will keep declining. Most Asian benchmarks climbed.

U.S. stocks fell yesterday after Federal Reserve Chairman Ben S. Bernanke acknowledged that the nation may be in a recession. Losses were capped after Best Buy Co., the country's largest electronics retailer, posted earnings that topped analyst estimates and an industry report showed an unexpected increase in jobs last month. Standard & Poor's 500 Index futures expiring in June declined 0.1 percent recently.

Copper, Oil

BHP advanced 3.8 percent to A$38.13, set for its highest close since March 7. Rio Tinto Group, the world's third-biggest mining company, rose 3.7 percent to A$129.93. Mitsubishi Corp., Japan's biggest trading company, jumped 2.7 percent to 3,100 yen.

Copper futures rose 1.9 percent in New York yesterday, rebounding from a three-day, 1.7 percent retreat, after the U.S. jobs report eased concern that a sagging U.S. economy will curb metals demand. Crude oil futures jumped 3.8 percent.

Inpex Holdings Inc., Japan's largest oil explorer, climbed 2.7 percent to 1.14 million yen. Woodside Petroleum Ltd., Australia's No. 2 oil and gas producer, gained 3 percent to A$56.46. Cnooc Ltd., China's largest offshore oil explorer, added 2.2 percent to HK$12.16 in Hong Kong.

Posco jumped 5.3 percent to 504,000 won, its biggest advance since Oct. 2. UBS expects a ``meaningful'' increase in steel prices in the second quarter, helping to boost Posco's operating profit by 11 percent, the brokerage said in a report.

Nuclear Reactors

Toshiba, Japan's largest supplier of reactors, rose 5.9 percent to 778 yen, poised for its highest close since Feb. 29. The company said today it is in discussions with Scana Corp. and Southern Co. on a multibillion-dollar deal to build four reactors in the U.S.

Japanese automakers fell after Nomura cut its recommendation on Toyota to ``neutral'' from ``buy'' and lowered its ratings for Honda Motor Co. and Fuji Heavy Industries Ltd. to ``reduce'' from neutral.'' Morgan Stanley slashed its price targets for Toyota, Honda and nine other carmakers, saying the business environment was worse than expected.

Toyota, Japan's No. 1 automaker, lost 2.1 percent to 5,130 yen. Honda, the second-largest, fell 2.9 percent to 3,020 yen. Fuji Heavy, the maker of Subaru vehicles, retreated 4.5 percent to 418 yen.

Asciano, Noble Group

Toyota and Honda reported declines in U.S. auto sales in March as tightening credit and record gasoline prices reduced demand. The International Monetary Fund yesterday cut its forecast for U.S. growth this year to 0.5 percent from a January prediction of 1.5 percent, according to a document obtained by Bloomberg News.

In Australia, Asciano Ltd. climbed 5.1 percent to A$4.33 after selling a A$492 million ($450 million) stake in Brambles Ltd., the world's largest supplier of wooden pallets used to move and store goods. Brambles lost 1.3 percent to A$10.30.

Noble Group Ltd., a Hong Kong-based supplier of raw materials, lost 4 percent to S$2.17 in Singapore trading, set for its largest decline since March 20. It sold 100 million shares at S$2.09 apiece to institutional investors.

No comments:

BLOG ARCHIVE