SF: Asian Stocks Rise as U.S. Earnings Improve; Bin Laden Killed
May 2 (Bloomberg) -- Asia's benchmark stock index rose to the highest level in almost four months after U.S. companies reported earnings that topped analysts' estimates and President Barack Obama confirmed Osama bin Laden has been killed.
Komatsu Ltd., the world's No. 2 maker of construction equipment, advanced 3 percent after Caterpillar Inc. posted earnings that beat estimates. Seiko Epson Corp., a Japanese printer maker, rose 5.7 percent after forecasting net income will jump 66 percent this fiscal year. GS Engineering & Construction Corp., a South Korea builder, climbed 0.8 percent in Seoul after the government announced policy measures to aid troubled builders and boost the property market.
The MSCI Asia Pacific Index rose 0.7 percent to 140.44 at 3:34 p.m. in Tokyo, the highest level since Jan. 19. Three stocks rose for each that fell on the gauge. The measure climbed 0.5 percent last week after the Federal Reserve renewed its pledge to stimulate growth in the U.S., the world's biggest economy, with low interest rates, boosting the outlook for exporters.
"The death of bin Laden eases some concern, but it's hard to imagine it'll lead to a reduction of risk in the Middle East, and so the market's reaction may be transitory," said Koichiro Nishio, a market analyst in Tokyo at SMBC Nikko Securities Inc. "The recovery of demand in the U.S. and other developed countries means a better environment for earnings."
Nikkei, Kospi
Japan's Nikkei 225 Stock Average rose 1.6 percent to the highest level since the March 11 earthquake and tsunami. Japanese shares extended gains when the yen weakened as the dollar strengthened following news of bin Laden's death in Pakistan. Pakistan's Karachi Stock Exchange 100 Index climbed 0.2 percent.
South Korea's Kospi Index added 1.7 percent. New Zealand's NZX 50 Index slipped 0.6 percent.
Australia's S&P/ASX 200 Index was little changed, recovering from earlier losses of as much as 1.2 percent earlier after the nation's currency rose above $1.10 for the first time since foreign-exchange controls were scrapped in 1983. Australia's manufacturing contracted in April for the seventh time in eight months as the record-high currency and consumer caution hurt textile and other producers, a report showed today.
Futures on the Standard & Poor's 500 Index advanced 0.7 percent today, reversing an earlier 0.2 percent decline, after President Obama said bin Laden was dead. In New York, the index rose 0.2 percent to 1,363.61 on April 29.
Bin Laden, who used a family inheritance to build the global terrorist network that killed almost 3,000 people in the Sept. 11, 2001, attacks on New York and Washington, died in a U.S. military action, according to President Obama.
Asian stocks also were driven higher by U.S. earnings and economic reports. Caterpillar, the world's largest maker of construction equipment, posted first-quarter profit that topped analysts' estimates and raised its full-year earnings forecast as sales surged in developing countries.
Goodyear Tire & Rubber Co., the biggest U.S. tiremaker, reported first-quarter adjusted earnings of 51 cents a share, more than quadrupling the 11-cent average estimate of analysts.
Consumer Spending
Also, a government report showed consumer spending in the U.S. climbed in March as Americans spent more on food and fuel. Purchases rose 0.6 percent after a revised 0.9 percent gain in February that was higher than previously estimated, Commerce Department figures showed on April 29.
Komatsu advanced 3 percent to 2,924 yen in Tokyo. Canon Inc., the world's No. 1 manufacturer of cameras, climbed 2.5 percent to 3,895 yen. Toyota Motor Corp., the world's largest carmaker, increased 1.9 percent to 3,290 yen.
