Asian Stocks Rise to Record on U.S. Growth; Toyota, BHP Advance
By Chen Shiyin and Stuart Kelly
June 4 (Bloomberg) -- Asian stocks rose to a third straight record after reports showed employment and manufacturing growth in the U.S. expanded more than expected and metals prices gained.
Toyota Motor Corp., which overtook General Motors Corp. as the world's biggest automaker by market value, climbed to a 10- week high on speculation demand in the region's largest export market will be sustained. BHP Billiton Ltd., the No. 1 mining company, climbed for a third day.
``The momentum, at least for the time being, is with stocks,'' said Atul Lele, who helps manage about $380 million at White Funds Management in Sydney. ``The U.S. economy is holding up better than many investors thought, as is the mining sector.''
The Morgan Stanley Capital International Asia-Pacific Index added 0.8 percent to 152.59 as of 10:25 a.m. in Tokyo, extending a two-day, 2 percent rally. Benchmarks in South Korea, Australia and Singapore climbed to new highs. Only China's CSI 300 Index dropped, losing 3.5 percent. New Zealand's market is closed for a holiday.
In Japan, the Nikkei 225 Stock Average added 0.5 percent to 18,040.37. Stocks also rose after a Ministry of Finance report showed the country's largest companies increased spending more than expected in the first quarter.
U.S. stocks rose on June 1, lifting the Standard & Poor's 500 Index to a record. Employers added 157,000 non-farm jobs in May after boosting payrolls by 80,000 in April, a government report showed on June 1. Economists surveyed by Bloomberg News had expected an increase of 132,000 jobs in May.
Turning Optimistic
The Institute for Supply Management's factory index rose to 55 in May, the highest in 13 months. Readings greater than 50 signal expansion. Economists expected the index to slip to 54, according to a Bloomberg survey.
Toyota, which generated more than a third of its fiscal 2006 revenue in North America, jumped 1.7 percent to 7,590 yen, the highest since March 29. The company also increased U.S. sales 14 percent in May on demand for fuel-efficient models, helping Asian companies boost their market share.
Samsung Electronics Co., Asia's largest maker of chips, flat screens and mobile phones, jumped 2.7 percent to 571,000 won. Samsung accounted for about 16 percent of South Korean exports last year. Hon Hai Precision Industry Co., the world's largest maker of electronics sold under other companies' brands, rose 1.4 percent to NT$246 in Taiwan.
``A lot of investors were worried about a slowdown in the U.S. economy but now they've turned more optimistic about a soft- landing scenario,'' said Kenji Tomida, who oversees $16 billion as chief fund manager at T&D Asset Management Co. in Tokyo. ``Companies that rely on overseas markets are the ones most likely to revise up their earnings.''
Rising Metals
BHP climbed 2.6 percent to A$33, poised for its first three- day advance since May 7. A measure of six metals traded on the London Metal Exchange rose 1.2 percent on June 1. Copper gained 1.2 percent and nickel jumped 3.3 percent.
Rio Tinto Group, the world's third-largest mining company, advanced 1.5 percent to A$97.30, a record. Sumitomo Metal Mining Co., Japan's second-biggest copper smelter and No. 1 nickel producer, added 2.4 percent to 2,980 yen.
Crude oil prices on June 1 rose 1.7 percent to $65.08 a barrel in New York, the third straight day of gains.
Woodside Petroleum Ltd., Australia's largest oil explorer after BHP, rose 0.9 percent to A$44.10. Santos Ltd., the third largest, added 1.5 percent to A$13.90.
Meanwhile, Japan's corporate investment increased 13.6 percent in the quarter ended March, a faster pace than a 10 percent gain forecast by economists in a Bloomberg survey.
Komatsu Ltd., the world's No. 2 maker of earth moving equipment, jumped 4 percent to 3,360 yen. Ishikawajima-Harima Heavy Industries Co., which makes ships, jet engines and industrial machinery, rose 2.8 percent to 439 yen.
By Chen Shiyin and Stuart Kelly
June 4 (Bloomberg) -- Asian stocks rose to a third straight record after reports showed employment and manufacturing growth in the U.S. expanded more than expected and metals prices gained.
Toyota Motor Corp., which overtook General Motors Corp. as the world's biggest automaker by market value, climbed to a 10- week high on speculation demand in the region's largest export market will be sustained. BHP Billiton Ltd., the No. 1 mining company, climbed for a third day.
``The momentum, at least for the time being, is with stocks,'' said Atul Lele, who helps manage about $380 million at White Funds Management in Sydney. ``The U.S. economy is holding up better than many investors thought, as is the mining sector.''
The Morgan Stanley Capital International Asia-Pacific Index added 0.8 percent to 152.59 as of 10:25 a.m. in Tokyo, extending a two-day, 2 percent rally. Benchmarks in South Korea, Australia and Singapore climbed to new highs. Only China's CSI 300 Index dropped, losing 3.5 percent. New Zealand's market is closed for a holiday.
In Japan, the Nikkei 225 Stock Average added 0.5 percent to 18,040.37. Stocks also rose after a Ministry of Finance report showed the country's largest companies increased spending more than expected in the first quarter.
U.S. stocks rose on June 1, lifting the Standard & Poor's 500 Index to a record. Employers added 157,000 non-farm jobs in May after boosting payrolls by 80,000 in April, a government report showed on June 1. Economists surveyed by Bloomberg News had expected an increase of 132,000 jobs in May.
Turning Optimistic
The Institute for Supply Management's factory index rose to 55 in May, the highest in 13 months. Readings greater than 50 signal expansion. Economists expected the index to slip to 54, according to a Bloomberg survey.
Toyota, which generated more than a third of its fiscal 2006 revenue in North America, jumped 1.7 percent to 7,590 yen, the highest since March 29. The company also increased U.S. sales 14 percent in May on demand for fuel-efficient models, helping Asian companies boost their market share.
Samsung Electronics Co., Asia's largest maker of chips, flat screens and mobile phones, jumped 2.7 percent to 571,000 won. Samsung accounted for about 16 percent of South Korean exports last year. Hon Hai Precision Industry Co., the world's largest maker of electronics sold under other companies' brands, rose 1.4 percent to NT$246 in Taiwan.
``A lot of investors were worried about a slowdown in the U.S. economy but now they've turned more optimistic about a soft- landing scenario,'' said Kenji Tomida, who oversees $16 billion as chief fund manager at T&D Asset Management Co. in Tokyo. ``Companies that rely on overseas markets are the ones most likely to revise up their earnings.''
Rising Metals
BHP climbed 2.6 percent to A$33, poised for its first three- day advance since May 7. A measure of six metals traded on the London Metal Exchange rose 1.2 percent on June 1. Copper gained 1.2 percent and nickel jumped 3.3 percent.
Rio Tinto Group, the world's third-largest mining company, advanced 1.5 percent to A$97.30, a record. Sumitomo Metal Mining Co., Japan's second-biggest copper smelter and No. 1 nickel producer, added 2.4 percent to 2,980 yen.
Crude oil prices on June 1 rose 1.7 percent to $65.08 a barrel in New York, the third straight day of gains.
Woodside Petroleum Ltd., Australia's largest oil explorer after BHP, rose 0.9 percent to A$44.10. Santos Ltd., the third largest, added 1.5 percent to A$13.90.
Meanwhile, Japan's corporate investment increased 13.6 percent in the quarter ended March, a faster pace than a 10 percent gain forecast by economists in a Bloomberg survey.
Komatsu Ltd., the world's No. 2 maker of earth moving equipment, jumped 4 percent to 3,360 yen. Ishikawajima-Harima Heavy Industries Co., which makes ships, jet engines and industrial machinery, rose 2.8 percent to 439 yen.
**Original Source = Bloomberg.com**
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