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Asian Stocks Rise on Growth Outlook; China, Malaysia Lead Gains
Posted by: regli
Date: 03/07/2007 01:57AM
Asian Stocks Rise on Growth Outlook; China, Malaysia Lead Gains
http://www.bloomberg.com/apps/news?pid=20601091&sid=aocolk4gsR6A&refer=india
By Chen Shiyin and Stuart Kelly
March 7 (Bloomberg) -- Asian shares rose for a second day, led by emerging markets as U.S. Treasury Secretary Henry Paulson said global economic growth is ``solid,'' allaying concern last week's stock-market rout will resume.
``We have solid growth, low inflation and high levels of liquidity,'' Paulson said to reporters in Seoul today.
China, Malaysia and the Philippines posted the region's biggest gains, while Australia's S&P/ASX 200 Index advanced after the government reported that the economy grew twice as fast as economists forecast in the fourth quarter.
The Morgan Stanley Capital International Asia-Pacific Index climbed 0.2 percent to 141.06 at 1:01 p.m. in Tokyo. The gauge yesterday added 1.8 percent, its first gain since a selloff that began Feb. 27 wiped out $3.3 trillion of market value globally.
Canon Inc. paced a drop in the Nikkei 225 Stock Average after a gain in the yen raised concern the value of Japanese exports will decline, while developers Mitsui Fudosan Co. and Mitsubishi Estate Co. rose after Goldman, Sachs & Co. said higher land prices will boost earnings. BHP Billiton, the world's biggest mining company, climbed after oil and metals prices increased.
``Anyone who was scared of investing in stocks because of global growth fears may find themselves reassessing that view,'' said Tom Murphy, who manages about $1 billion in Asian assets at Deutsche Bank AG in Sydney. ``Confidence in stocks will increase, and is already starting to be reflected in the metals sector.''
Emerging Markets
U.S. stocks broke a weeklong slump and posted their biggest gains since July after Paulson said yesterday an increase in bad debts at subprime mortgage companies won't affect banks that make less risky loans. The Standard & Poor's 500 Index added 1.6 percent, the best performance since July 24.
The MSCI index of emerging market stocks yesterday rose for the first time in seven days. It gained 2.4 percent, after falling 10 percent in the previous five days. A measure of shares in developed countries added 1.4 percent after sliding 6.1 percent during the rout.
The slide was triggered after Chinese stocks on Feb. 27 plunged the most in a decade and disappointing reports on the U.S. economy rattled investor confidence. Emerging market stocks will recover from the declines, helped by some of the fastest economic growth rates in the world, Templeton Asset Management Ltd.'s Mark Mobius said late yesterday.
``The markets around the world are beginning to wake up to the fact that emerging markets are growing faster,'' Mobius, who oversees $30 billion in emerging-market stocks, told investors at a presentation in Sao Paulo. ``You may see emerging market valuations surpassing that of the U.S. or the world.''
Throwing Darts
China's Shanghai and Shenzhen 300 Index rose 2.6 percent, while benchmarks in the Malaysia and the Philippines both jumped 3 percent.
Philippine Long Distance Telephone Co., the country's largest company by market value, rose 1.1 percent to 2,370 pesos. It dropped 10 percent during the sell-off. IOI Corp., the world's largest oil-palm grower, added 4 percent to 18.40 ringgit, ending a six-day, 12 percent slump in Malaysia.
``The market was very oversold,'' said Patrick Chang, who helps manage the equivalent of $2.1 billion at SBB Asset Management in Kuala Lumpur. ``Now it's almost like throwing a dart and you will hit'' a stock that's cheap, he said.
Australian Growth
Westpac Banking Corp., Australia's fourth-largest lender, climbed 1.1 percent to A$25.74. Tabcorp Holdings Ltd., Australia's biggest gaming company, advanced 3.1 percent to A$16.45.
Australia's gross domestic product rose 1 percent from the third quarter, when it climbed 0.3 percent, the government reported today. The median estimate in a Bloomberg News survey of 25 economists was for a 0.5 percent gain.
Reserve Bank of Australia Governor Glenn Stevens left the overnight cash rate target at 6.25 percent for a third straight meeting after raising it a quarter percentage point in November to stem inflation. All 25 economists surveyed by Bloomberg News expected no change.
In Japan, the yen climbed to as high as 116.21 per dollar from as weak as 116.89. The yen also strengthened to as much as 152.45 per euro from 153.08 yesterday, when it dropped 1.2 percent. The gains reduce the value of Japanese exporters' overseas sales when converted back into local currency.
Canon, the world's largest seller of digital cameras, lost 2.4 percent to 6,070 yen. Sony Corp., the maker of the PlayStation 3 game console, fell 1.2 percent to 5,820 yen.
Commodity Prices
BHP Billiton, the world's biggest mining company by market value and production, gained 1.4 percent to A$27.43. Cnooc Ltd., China's largest offshore oil producer, rose 1.4 percent to HK$6.38.
A measure of six metals traded on the London Metal Exchange, including copper and zinc, gained 1.4 percent. Copper climbed 1.5 percent, while nickel added 2.8 percent. Crude oil rose 1 percent to $60.69 a barrel in New York and recently traded at $60.74 in after-hours trading.
``The weight of news is leaning in stocks' favor, mainly because of commodities prices,'' said Geoff Wilson, who helps manage the equivalent of $385 million at Wilson Asset Management in Sydney.
http://www.bloomberg.com/apps/news?pid=20601091&sid=aocolk4gsR6A&refer=india
By Chen Shiyin and Stuart Kelly
March 7 (Bloomberg) -- Asian shares rose for a second day, led by emerging markets as U.S. Treasury Secretary Henry Paulson said global economic growth is ``solid,'' allaying concern last week's stock-market rout will resume.
``We have solid growth, low inflation and high levels of liquidity,'' Paulson said to reporters in Seoul today.
China, Malaysia and the Philippines posted the region's biggest gains, while Australia's S&P/ASX 200 Index advanced after the government reported that the economy grew twice as fast as economists forecast in the fourth quarter.
The Morgan Stanley Capital International Asia-Pacific Index climbed 0.2 percent to 141.06 at 1:01 p.m. in Tokyo. The gauge yesterday added 1.8 percent, its first gain since a selloff that began Feb. 27 wiped out $3.3 trillion of market value globally.
Canon Inc. paced a drop in the Nikkei 225 Stock Average after a gain in the yen raised concern the value of Japanese exports will decline, while developers Mitsui Fudosan Co. and Mitsubishi Estate Co. rose after Goldman, Sachs & Co. said higher land prices will boost earnings. BHP Billiton, the world's biggest mining company, climbed after oil and metals prices increased.
``Anyone who was scared of investing in stocks because of global growth fears may find themselves reassessing that view,'' said Tom Murphy, who manages about $1 billion in Asian assets at Deutsche Bank AG in Sydney. ``Confidence in stocks will increase, and is already starting to be reflected in the metals sector.''
Emerging Markets
U.S. stocks broke a weeklong slump and posted their biggest gains since July after Paulson said yesterday an increase in bad debts at subprime mortgage companies won't affect banks that make less risky loans. The Standard & Poor's 500 Index added 1.6 percent, the best performance since July 24.
The MSCI index of emerging market stocks yesterday rose for the first time in seven days. It gained 2.4 percent, after falling 10 percent in the previous five days. A measure of shares in developed countries added 1.4 percent after sliding 6.1 percent during the rout.
The slide was triggered after Chinese stocks on Feb. 27 plunged the most in a decade and disappointing reports on the U.S. economy rattled investor confidence. Emerging market stocks will recover from the declines, helped by some of the fastest economic growth rates in the world, Templeton Asset Management Ltd.'s Mark Mobius said late yesterday.
``The markets around the world are beginning to wake up to the fact that emerging markets are growing faster,'' Mobius, who oversees $30 billion in emerging-market stocks, told investors at a presentation in Sao Paulo. ``You may see emerging market valuations surpassing that of the U.S. or the world.''
Throwing Darts
China's Shanghai and Shenzhen 300 Index rose 2.6 percent, while benchmarks in the Malaysia and the Philippines both jumped 3 percent.
Philippine Long Distance Telephone Co., the country's largest company by market value, rose 1.1 percent to 2,370 pesos. It dropped 10 percent during the sell-off. IOI Corp., the world's largest oil-palm grower, added 4 percent to 18.40 ringgit, ending a six-day, 12 percent slump in Malaysia.
``The market was very oversold,'' said Patrick Chang, who helps manage the equivalent of $2.1 billion at SBB Asset Management in Kuala Lumpur. ``Now it's almost like throwing a dart and you will hit'' a stock that's cheap, he said.
Australian Growth
Westpac Banking Corp., Australia's fourth-largest lender, climbed 1.1 percent to A$25.74. Tabcorp Holdings Ltd., Australia's biggest gaming company, advanced 3.1 percent to A$16.45.
Australia's gross domestic product rose 1 percent from the third quarter, when it climbed 0.3 percent, the government reported today. The median estimate in a Bloomberg News survey of 25 economists was for a 0.5 percent gain.
Reserve Bank of Australia Governor Glenn Stevens left the overnight cash rate target at 6.25 percent for a third straight meeting after raising it a quarter percentage point in November to stem inflation. All 25 economists surveyed by Bloomberg News expected no change.
In Japan, the yen climbed to as high as 116.21 per dollar from as weak as 116.89. The yen also strengthened to as much as 152.45 per euro from 153.08 yesterday, when it dropped 1.2 percent. The gains reduce the value of Japanese exporters' overseas sales when converted back into local currency.
Canon, the world's largest seller of digital cameras, lost 2.4 percent to 6,070 yen. Sony Corp., the maker of the PlayStation 3 game console, fell 1.2 percent to 5,820 yen.
Commodity Prices
BHP Billiton, the world's biggest mining company by market value and production, gained 1.4 percent to A$27.43. Cnooc Ltd., China's largest offshore oil producer, rose 1.4 percent to HK$6.38.
A measure of six metals traded on the London Metal Exchange, including copper and zinc, gained 1.4 percent. Copper climbed 1.5 percent, while nickel added 2.8 percent. Crude oil rose 1 percent to $60.69 a barrel in New York and recently traded at $60.74 in after-hours trading.
``The weight of news is leaning in stocks' favor, mainly because of commodities prices,'' said Geoff Wilson, who helps manage the equivalent of $385 million at Wilson Asset Management in Sydney.
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