Asian stocks rose for a second week, almost erasing the MSCI Asia-Pacific Index’s losses this year, as reports on global semiconductor sales, Indian manufacturing and US jobless claims boosted optimism for an economic revival.
Rio Tinto Group, the world’s third-biggest mining company, gained 6.4 percent in Sydney as metal prices climbed on speculation a recovery will boost demand for metals. Sumco Corp jumped 9.3 percent, leading gains by chip-related stocks. Li & Fung Ltd (利豐), the biggest supplier for retailers including Wal-Mart Stores Inc, and Canon Inc, which gets about 27 percent of sales from the US, advanced more than 5 percent. Tata Motors Ltd, India’s biggest truckmaker, surged 12 percent.
“There’s been quite an abundance of leading indicators pointing to an improving employment backdrop,” said Nader Naeimi, an investment strategist in Sydney at AMP Capital Investors, which oversees about US$90 billion globally. “Jobs are key to the sustainability of the recovery.”
The MSCI Asia-Pacific Index gained 1.9 percent this week, paring its decline this year to 0.1 percent. The gauge has lost 5.1 percent since reaching a 17-month high on Jan. 15 amid concern governments will start withdrawing economic-stimulus measures and that Greece may struggle to curb its budget deficit.
Japan’s Nikkei 225 Stock Average increased 2.4 percent, its largest gain this year. India’s Sensitive Index surged 3.4 percent, this week’s biggest advance among benchmarks in the Asia-Pacific region, after reports showed the nation’s exports and manufacturing output climbed.
China’s Shanghai Composite Index slipped 0.7 percent on concern bank lending may slow and interest rates will rise as inflation accelerates. Hong Kong’s Hang Seng Index rose 0.9 percent. Australia’s S&P/ASX 200 Index increased 2.8 percent even as the nation’s central bank raised its benchmark interest rate to 4 percent from 3.75 percent on March 2.
Raw-material suppliers advanced the most this week among the MSCI Asia-Pacific Index’s 10 industry groups, followed by information-technology companies, on speculation a global recovery will boost demand for commodities.
The MSCI Asia-Pacific Index on Friday rose the most this week, after a US Labor Department report showed the country’s claims for jobless benefits dropped in the week ended Feb. 27 and the yen weakened against the dollar on speculation the Bank of Japan will further ease monetary policies.
India’s government said on March 2 that the country’s exports rose for a third consecutive month in January, while a report on March 1 showed South Korea’s exports rose for a fourth month in February. A report the same day showed Japan’s unemployment rate unexpectedly fell to a 10-month low in January.
Li & Fung, which gets 62 percent of sales from the US, climbed 8.7 percent to HK$39.25. Billabong Ltd, the Australian surf-wear maker that gets half of sales from the US, gained 4.8 percent to A$10.66. Canon, which is the world’s biggest camera maker and gets 28 percent of its sales in the Americas, increased 5.3 percent to ¥3,890.
The MSCI Asia-Pacific Index surged 34 percent last year as governments worldwide boosted spending and central banks lowered interest rates to help restore economies battered by the global recession. This year, potential gains have been weighed down by concern governments from China to the US and India will tighten lending and withdraw stimulus policies amid signs the recovery is continuing.
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