Wednesday, May 29, 2013

(BN) Asian Stocks Rise for Second Day as U.S. Reports Buoy Exporters

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Asian Stocks Rise for Second Day as U.S. Reports Buoy Exporters
2013-05-29 00:40:36.266 GMT


By Adam Haigh
May 29 (Bloomberg) -- Asian stocks rose for a second day
after reports showed U.S. consumer confidence climbed to the
highest level since 2008 and home values jumped the most in
seven years, boosting the outlook for exporters.
Toyota Motor Corp., the world's largest carmaker, gained
0.8 percent after the yen weakened from the close of equity
markets in Japan yesterday. Nissan Motor Co., a carmaker that
gets 79 percent of its revenue abroad, added 1.5 percent in
Tokyo. Korea Electric Power Corp. lost 4.4 percent in Seoul as
brokerages from Daishin Securities to Shinyoung Securities cut
price forecasts on shares of the state-owned firm, saying
suspended operations at some nuclear reactors may reduce profit.
The MSCI Asia Pacific Index advanced 0.2 percent to 137.46
as of 9:39 a.m. in Tokyo, with eight of the 10 industry groups
on the gauge rising, before markets in China and Hong Kong
opened. Futures on the Standard & Poor's 500 Index slipped 0.1
percent.
"An improving U.S. economy should support earnings and
valuations," said Johannes Jooste, who helps oversee more than
$1.76 trillion as a market strategist at Merrill Lynch Wealth
Management in London. "Although Bank of Japan Governor Haruhiko
Kuroda has signaled no extension to his monetary stimulus
package, loose Japanese monetary policy should remain a bolster
for local liquidity."

Relative Value

The MSCI Asia Pacific Index, the benchmark regional
equities gauge, traded at 13.4 times average estimated earnings
yesterday compared with 15.1 for the Standard & Poor's 500 Index
and 13.6 times for the Stoxx Europe 600 Index, according to data
compiled by Bloomberg. The Asia Pacific gauge fell 3 percent
this month through yesterday, on course for its first decline in
seven months.
Japan's Topix index, the nation's broadest equity gauge,
added 1 percent. Australia's S&P/ASX 200 Index gained 0.2
percent and New Zealand's NZX 50 Index rose 0.4 percent. South
Korea's Kospi index advanced 0.6 percent.
U.S. consumer confidence climbed in May to the highest
level in more than five years, a Conference Board report showed
yesterday. The index rose to 76.2, the strongest since February
2008 and exceeding the highest estimate in a Bloomberg survey of
economists.
Separate data showed U.S. house prices rose in the 12
months through March by the most in seven years as the recovery
in residential real estate gained momentum. The S&P/Case-Shiller
index of property values increased 10.9 percent from March 2012,
the biggest 12-month gain since April 2006, after advancing 9.4
percent in February.
The yen traded at 102.37 per dollar as of 9:27 a.m. in
Tokyo, declining from 101.98 at the close of equity markets
yesterday in Japan.
SoftBank Corp. climbed 2.1 percent to 5,320 yen in Tokyo
after a person familiar with the situation said its takeover of
Sprint Nextel Corp. was close to passing a U.S national-security
review.

For Related News and Information:
Developed Market View: DMMV <GO>
Graphing: GRAPH <GO>
Feature stories on stocks: TNI STK GREET <GO>
MSCI Asia Pacific versus Dow Jones Industrial Average:
MXAP <Index> INDU <Index> HS <GO>
World Trends and Reversals: WTR <GO>
Equity screening: EQS <GO>

--Editor: John McCluskey

To contact the reporter on this story:
Adam Haigh in Sydney at +61-2-9777-8635 or
ahaigh1@bloomberg.net

To contact the editor responsible for this story:
Nick Gentle at +852-2977-6545 or
ngentle2@bloomberg.net

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