Asian stocks rose, paced by the Hang Seng Index’s biggest gain in more than four months, as growth in Chinese manufacturing bolstered confidence in the global economy. Jiangxi Copper Co. climbed 5.8 percent in Shanghai and Cnooc Ltd., China’s biggest offshore oil explorer, gained 3.7 percent in Hong Kong as oil and copper prices rose. Taiwan’s HTC Corp., which makes mobile-phone handsets, surged 7 percent after saying sales may reach a record. Honda Motor Co. sank 5 percent in Tokyo after lowering its second-half profit estimate. The MSCI Asia Pacific Index rose 0.9 percent to 130.46 as of 5:12 p.m. in Tokyo. The gauge reversed losses of as much as 0.2 percent after a report showed China’s manufacturing grew at the fastest pace in six months in October, adding to signs that economic growth is withstanding government efforts to curb property speculation and improve energy efficiency. “The strong data coming out of China is suggesting the period of economic slowdown is coming to an end,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $135 billion. “That’s very good for Asia, Australia and other countries that rely on China for export growth.” Hong Kong’s Hang Seng rose 2.4 percent, the most since June 21, while China’s Shanghai Composite Index gained 2.5 percent. Australia’s S&P/ASX 200 Index climbed 0.8 percent. The Sensitive Index advanced 1.7 percent in Mumbai, where the exchange halted trading for an hour to fix “technical issues.” U.S. Economy Japan’s Nikkei 225 Stock Average lost 0.5 percent and the broader Topix index sank 0.9 percent as forecasts from companies including Honda and lower profit from Nomura Holdings Inc. dragged stocks lower. Futures on the U.S. Standard & Poor’s 500 Index climbed 0.7 percent. Most stocks on the gauge advanced on Oct. 29 as Microsoft Corp. beat profit estimates and a government report on economic growth matched forecasts. Energy and material stocks accounted for 31 percent of the MSCI Asia Pacific Index advance today as China’s logistics federation said the Purchasing Managers’ Index rose to 54.7. The reading compared with 53.8 for both the previous month and the median forecast of 13 economists surveyed by Bloomberg News. “The data shows that China is growing solidly,” said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors Ltd., which manages about $85 billion. “Fears of a ‘hard landing’ on the back of the country’s tightening measures were misplaced.” Copper, Zinc Jiangxi Copper rose 5.8 percent to 46.27 yuan after the manufacturing report from China, the world’s largest user of industrial metals. Zinc, aluminum and lead climbed, while copper advanced from London to Shanghai as investors also sought alternatives to a declining U.S. dollar. In Seoul, Korea Zinc Co., the world’s second-biggest zinc smelter, surged 5.1 percent to 298,000 won. Cnooc climbed 3.7 percent to HK$16.66 in Hong Kong, while PetroChina Co., Asia’s biggest company by market value, advanced 2 percent to HK$9.65. Crude-oil futures in New York gained as much as 0.7 percent in after-hours trading today. China Construction Bank Corp. rose 3.4 percent to HK$7.64 after reporting a 31 percent jump in third-quarter net income that was more than analysts estimated. Technology Stocks HTC, the world’s largest manufacturer of handsets using Google Inc. and Microsoft Corp. operating systems, climbed 7 percent to NT$739 in Taipei, leading the region’s technology stocks higher. HTC’s sales may total NT$100 billion ($3.3 billion) in the three months ending Dec. 31, the Taoyuan, Taiwan-based company said after the close of trading on Oct. 29. Acer Inc., the world’s second-largest computer maker, gained 4.5 percent to NT$92.90 after saying it expects to ship up to 5 million phones next year compared with about 1 million handsets in 2010. In Seoul, Kia Motors Co., South Korea’s second-biggest automaker, jumped 10 percent to 49,500 won, the biggest gain on the Asian benchmark, after brokerages including Morgan Stanley raised their price estimates for the stock, citing earnings results released last week. Hyundai Motor Co., South Korea’s largest carmaker which last week reported a 38 percent increase in third-quarter profit, climbed 6.2 percent to 180,500 won. Additional Easing The MSCI Asia Pacific Index retreated earlier today as the U.S. dollar slid for a third day against the euro on bets the Federal Reserve will increase debt purchases amid signs of a stagnant recovery in the world’s largest economy. The yen weakened to 81.41 per dollar from 80.40 last week, after earlier touching 80.22, the strongest level since April 1995. “People want to know how Japan and the U.S. will set their monetary policies,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. “Pressure on the yen is strong because of speculation about additional quantitative easing by the Federal Reserve.” Fed policy makers are due to meet Nov. 2-3, while Bank of Japan officials convene on Nov. 4-5. The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, government data showed on Oct. 29, a sign the expansion is developing staying power. The increase matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7 percent gain in the previous three months. Honda, Nomura Slump The MSCI Asia Pacific Index increased 7.4 percent in 2010 through last week, compared with gains of 6.1 percent by the S&P 500 and 4.8 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark, which climbed 2.4 percent in October for its second straight monthly gain, are valued at 14.2 times estimated profit, compared with 14 times for the S&P 500 and 12.2 times for the Stoxx 600. Honda sank 5 percent to 2,789 yen in Tokyo. Japan’s second- largest carmaker expects to earn 92 billion yen ($1.1 billion) in net income in the six months ending March 31, compared with an earlier forecast for 105 billion yen in profit, according to a Bloomberg calculation based on the company’s first-half earnings statement on Oct. 29. Nomura, Japan’s biggest brokerage, sank 5 percent to 397 yen after its quarterly profit plunged by 96 percent on losses at its overseas operations. Acom Co., Japan’s largest consumer lender by market value, tumbled 11 percent to 819 yen. The stock extended a 5.4 percent decline on Oct. 29, when the company said it had a first-half net loss of 43.9 billion yen ($544 million) and that it won’t pay a dividend this fiscal year. To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.

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