BLBG: Asian Stocks Climb for Second Day, Led by Computer-Related, Oil Companies
Asian stocks rose for a second day, led by technology and energy companies, after Dell Inc.’s profit exceeded analyst estimates and oil prices reversed losses.
Samsung Electronics Co., Asia’s biggest chipmaker, gained 2.4 percent in Seoul, leading computer-related shares higher. Cnooc Ltd., China’s No. 1 offshore oil producer, climbed 1.9 percent in Hong Kong as crude prices increased amid speculation Ireland will be bailed out of its debt crisis. Sino Land Co. fell 1.5 percent in Hong Kong on expectations the city will announce new measures today to cool the property market.
The MSCI Asia Pacific Index rose 0.3 percent to 132.01 at 6:32 p.m. in Tokyo. The gauge, which swung between a 0.6 percent gain and a 0.2 percent drop, sank the first three days this week on concern over Ireland and how China will tackle inflation.
“The Ireland issue looks like it’ll be resolved, but concern about what policy measures China introduces to stem inflationary concerns is likely to weigh on the markets for some time,” said Tim Schroeders, who helps manage $1 billion in Melbourne at Pengana Capital Ltd.
Hong Kong’s Hang Seng Index slipped 0.1 percent after plunging 1.6 percent. China’s Shanghai Composite Index reversed a 2.1 percent drop to climb 0.8 percent at the close as concern faded that policy makers will raise interest rates as soon as this weekend and investors speculated losses were overdone.
Japan’s Nikkei 225 Stock Average rose 0.1 percent, South Korea’s Kospi Index increased 0.7 percent and Australia’s S&P/ASX 200 Index lost 0.2 percent.
Computer Shares Rise
Futures on the Standard & Poor’s 500 Index were little changed. The index gained 1.5 percent yesterday in New York as speculation grew that Ireland will accept a bailout to rescue indebted banks and reports on U.S. manufacturing and jobless claims bolstered optimism about the world’s biggest economy.
Information-technology shares rose the most today among the MSCI Asia Pacific Index’s 10 industry groups. Samsung climbed 2.4 percent to 818,000 won in Seoul. HTC Corp., the world’s No. 1 maker of handsets using Google Inc. and Microsoft Corp. operating systems, gained 3 percent to NT$827 in Taipei.
Dell, the world’s third-largest supplier of personal computers, yesterday reported quarterly profit that exceeded analysts’ predictions as declining component prices resulted in fatter margins. Profit excluding certain items was 45 cents a share in the fiscal third quarter, topping the 32-cent average of estimates in a Bloomberg survey. Elpida Memory Inc., the world’s third-largest maker of computer-memory chips, jumped 5.7 percent to 989 yen in Tokyo. The company was raised to “outperform” from “neutral” by Masaharu Sato, an analyst at Daiwa Securities Group Inc.
Energy Companies
Cnooc increased 1.9 percent to HK$17.60. PetroChina Co., the nation’s largest oil producer, gained 1.3 percent to HK$9.70. China Petroleum & Chemical Corp., also known as Sinopec, advanced 0.7 percent to HK$7.28.
Crude for December delivery rose as much 0.8 percent to $82.50 a barrel in electronic trading on the New York Mercantile Exchange.
The MSCI Asia Pacific Index increased 9.3 percent this year through yesterday, compared with 7.3 percent for the S&P 500 and 6.8 percent for the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.5 times estimated earnings on average, compared with 14.1 times for the S&P 500 and 12.2 times for the Stoxx 600.
Developers Decline
Finance-related companies dropped the most in the MSCI Asia Pacific Index, led by Hong Kong property developers. Sino Land declined 1.5 percent to HK$16.32. New World Development Co., controlled by billionaire Cheng Yu-tung, fell 2.5 percent to HK$15.88 and Sun Hung Kai Properties Ltd., Hong Kong’s biggest developer by market value, lost 1 percent to HK$134.20.
Hong Kong’s government plans new measures to cool the property market that will be related to the stamp duty imposed on home sales, and will make an announcement today, a person familiar with the situation said this afternoon. The government announced the plan after the close of trading.
The International Monetary Fund said in a report yesterday that Hong Kong’s accelerating asset inflation risks causing a bust that leads to deflation and an extended economic “downturn.” The government should consider raising stamp duties on housing and taxes on higher-end properties if asset inflation persists, the fund said.
“Property curbs in Hong Kong certainly are hurting the developers today,” said Andrew Sullivan, director of institutional sales trading at OSK Securities Hong Kong Ltd. “I doubt the government can really do very much.”
To contact the reporter for this story: Shani Raja in Sydney at sraja4@bloomberg.net; Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net.
To contact the editor responsible for this story: Nicolas Johnson at nicojohnson@bloomberg.net.
