BLBG: Asian Stocks, Copper Gain as Earnings Rise, Greek Concern Eases
By Masaki Kondo
April 30 (Bloomberg) -- Asian stocks advanced for the first time in four days and copper gained as improving earnings and signs the Greek debt crisis is easing boosted speculation the global recovery is intact. The South Korean won rose.
The MSCI Asia Pacific Index climbed as much as 1.2 percent after Samsung Electronics Co. reported first-quarter net income jumped almost sevenfold. Copper futures gained for the first time in four days, rising 0.9 percent, and crude oil rose 0.4 percent. Standard & Poor’s 500 Index futures were 0.2 percent lower after the biggest gain since March 5 yesterday.
European Commission President Jose Barroso said today that he is confident a rescue package for the Greek government will be completed “in days,” easing investor concern that the nation may default. First-quarter gross domestic product growth in the U.S., due for release later today, may show a 3.3 percent expansion, according to a Bloomberg survey of 85 economists.
“The global economy is picking up and corporate earnings are improving,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $64 billion. “Investors aren’t very, very bullish but cautiously believe the market will remain resilient,” Ishigane said.
The MSCI Asia Pacific Index rose 1.1 percent to 125.73 as of 2 p.m. in Tokyo. The gauge has climbed about 10 percent from its closing low this year on Feb. 8 on better-than estimated economic and earnings reports. The won strengthened 0.6 percent to 1,107.7 per dollar as speculation Greece will secure international aid gave investors confidence to buy Asian assets.
‘Bit of a Boost’
“Greece is taking the weight off sovereign debt issues and giving the equity markets a bit of a boost,” said Bernard Yeung, Hong Kong-based head of currency trading for Asia at National Australia Bank Ltd.
Agreement on Greek aid will prevent market contagion, the European Commission’s Barosso said in Beijing. The International Monetary Fund, European Central Bank and European Union are making rapid progress on the package, he said.
Emerging-market bond funds received more than $5 billion this month as investors pulled money out of European equity markets amid concerns about ratings downgrades for Greece, Spain and Portugal, EPFR Global said in an e-mailed statement.
Japan’s Nikkei 225 Stock Average advanced 1.2 percent after being closed yesterday for a holiday, and Australia’s S&P/ASX 200 Index rose 0.5 percent. Macquarie Group Ltd., Australia’s largest investment bank, said second-half net income more than doubled. The stock surged 4.4 percent.
‘Good Rebound’
“Into 2011, there’s a lot of anticipation for a pretty good rebound in earnings,” said Chris Hall, who helps manage about $3.6 billion of assets including Macquarie stock at Argo Investments in Adelaide, Australia.
South Korea’s Kospi index rose 0.8 percent after the nation’s industrial production expanded for a ninth straight month in March. Output increased 22.1 percent from a year earlier, more than estimated.
“The output growth is quite impressive,” said Park Sang Hyun, an economist at HI Investment & Securities Co. in Seoul. “Inventories and corporate investments have begun to rise on reviving global demand.”
Samsung Electronics, Asia’s biggest chipmaker, climbed 2.9 percent after reporting profit surged as rebounding demand for personal computers drove up prices for semiconductors.
“Earnings reports are affirming the global economy is improving and that’s inducing investors to buy in,” said Juichi Wako, a strategist at Tokyo-based Nomura Holdings Inc.
Three-month delivery copper on the London Metal Exchange rose from the lowest in more than one month, gaining by as much as 1.5 percent to $7,465 a metric ton. Nickel, aluminum, zinc and tin futures also climbed.
‘Less Concern’
“There seemed to be a little less concern with events unfolding in Europe,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “There are sources of uncertainty in the market that have threatened to derail confidence in the economic recovery, but we are still seeing an encouraging flow of data in the U.S. and elsewhere.”
Greek Prime Minister George Papandreou said he’ll do what is needed to save Greece, according to an e-mailed transcript of statements yesterday in Athens. The euro rose for a third day against the dollar, advancing to $1.3245 from $1.3233 yesterday. The single currency also climbed against the yen.
“Greece looks like it’ll be rescued, suggesting the worst is over at this stage,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. Ltd. in Tokyo. “This is leading to a short-term relief rally in the euro.”
Crude oil for June delivery rose 0.4 percent to $85.47 a barrel on the New York Mercantile Exchange. Futures are poised for a 0.4 percent rise for the week and a 2 percent advance for April, marking the third month of gains.
The cost of protecting Asia-Pacific bonds from non-payment dropped as the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 2 basis points to 99, Royal Bank of Scotland Group Plc prices show.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net
