April 23 (Bloomberg) -- Asian stocks advanced, led by commodities companies, after oil and metals climbed to records.
Mitsui & Co., which depends on trading in raw materials for more than half of its profit, gained to the highest in five months. Dongkuk Steel Mill Co., South Korea's third-largest maker of the alloy, rose to a two-month high after saying it will increase prices of ship plates by 23 percent. Chugai Pharmaceutical Co. staged its biggest rally in almost six years after lifting its earnings forecast.
``Commodities are everyone's favorite for the time being, everything's about commodities,'' said Jason Lee, who helps oversee the equivalent of $2.1 billion as general manager of equities at Amanah Raya-JMF Asset Management in Kuala Lumpur. ``They will continue to outperform. Earnings growth is still there in Asia.''
The MSCI Asia Pacific Index added 1 percent to 149.12 as of 12:06 p.m. in Tokyo. The benchmark has rallied 13 percent since dropping to a two-month low on March 17. Japan's Nikkei 225 Stock Average gained 0.7 percent to 13,640.65. Most Asian benchmarks rose.
Nomura Holdings Inc., Japan's largest brokerage, dropped after a securities watchdog began an investigation over insider- trading allegations. Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, slumped after Merrill Lynch & Co. recommended investors sell the shares.
Standard & Poor's 500 Index futures expiring in June advanced 0.2 percent. The benchmark tumbled the most in a week yesterday amid concern earnings have started to deteriorate for non-financial companies as well as banks.
Rising Commodities
Energy and materials shares accounted for 30 percent of the MSCI Asia Pacific Index's advance.
Mitsui, whose operating profit rises by 1.8 billion yen ($17.5 million) for every $1 climb in the price of a barrel of oil, according to Nomura, jumped 4.7 percent to 2,575 yen in Tokyo. BHP Billiton Ltd., the world's largest mining company and Australia's No. 1 oil producer, advanced 2.3 percent to A$44.50 in Sydney after saying it increased iron ore output by 22 percent in the third quarter.
The Reuters/Jefferies CRB Index of 19 raw materials climbed to the highest since at least September 1956. Oil reached a record $119.90 a barrel in New York yesterday, and gasoline futures topped $3 a gallon for the first time.
Dongkuk Steel climbed 4.4 percent to 45,450 won. The company said yesterday it will lift steel plate prices for shipbuilders starting April 25.
Steel Prices
Hyundai Hysco, a South Korean steelmaker that said yesterday first-quarter profit almost tripled, jumped 7.3 percent to 9,620 won. Posco, the nation's top steelmaker, advanced 3 percent to 481,000 won.
Steelmakers have been negotiating with customers to procure higher prices to help offset rising costs of iron ore and coking coal used in the production process.
Chugai, the Japanese unit of Roche Holding AG, soared 10 percent to 1,368 yen, on course for the biggest gain since June 2002. The company raised its net income forecast by 71 percent after Roche said it would adjust its prices to reflect Japan's government-mandated price cuts.
Nomura dropped 1.8 percent to 1,610 yen. The brokerage fired an employee who violated a ban on insider trading and is now under investigation by the government, Chief Executive Officer Kenichi Watanabe said yesterday.
Hon Hai declined 2.1 percent to NT$184 in Taipei. Tony Tseng, an analyst at Merrill, cut his rating on the company to ``sell'' from ``buy,'' saying that order growth will slow from mobile phone and computer companies. Taiwan Semiconductor Manufacturing Co., the world's largest maker of customized chips, slumped 3 percent to NT$65.30.
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