By Linus Chua and Saeromi Shin March 19 (Bloomberg) -- Asian stocks rose, led by auto and electronics makers, after a report on fewer U.S. jobless claims boosted confidence in the recovery of the region’s biggest export market. The yen weakened and copper gained. The MSCI Asia Pacific Index gained 0.6 percent to 125.02 as of 5 p.m. in Tokyo. The Stoxx Euro 600 climbed 0.3 percent to 262.02 at 8 a.m. in London. The yen declined versus 12 of 16 major counterparts as the U.S. economic news curbed demand for Japan’s currency as a refuge. Copper for three-month delivery advanced 0.7 percent to $7,540 a metric ton. Futures on the Standard & Poor’s 500 Index were little changed. Investor sentiment improved as fewer Americans filed for jobless benefits and consumer prices remained unchanged, signaling that the world’s biggest economy will keep expanding without a pickup in inflation. Shares of Asia’s biggest exporters, including Sony Corp. and Honda Motor Co., rallied. “The job market has been the slowest to pick up among key U.S. economic data and its recovery should give a boost to the markets for the next two months,” said Kim Yong Tae, a Seoul- based fund manager at Yurie Asset Management, which oversees $3.5 billion. First-time jobless applications dropped by 5,000 to 457,000 in the week ended March 13, while consumer prices were unchanged in February, the first time they didn’t increase since March 2009, U.S. Labor Department figures showed. Japan, Korea Japan’s Nikkei 225 Stock Average rose 0.8 percent, leading major Asia benchmarks higher. Sony, maker of the PlayStation 3 game console, climbed 2.6 percent. Honda, which gets 44 percent of its sales in North America, gained 1.9 percent. Toyota Motor Corp., the world’s largest automaker, added 2 percent. South Korea’s Kospi index increased 0.7 percent, led by 5 percent jump in Kia Motors Corp. after the nation’s second- largest automaker said it will add a 100 million-euro ($137 million) engine unit in Slovakia to boost production in Europe. “Economies and earnings globally are in recovery mode and I don’t think we have to worry about it,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees the equivalent of $95 billion. “People have been jittery about monetary tightening, but authorities can consider exiting stimulus because economies are improving.” The average estimate for annual earnings of companies in the MSCI Asia Pacific Index has risen 3.4 percent in the past four weeks, according to data compiled by Bloomberg. Yen, Euro The yen traded at 90.49 to the dollar in Tokyo from 90.39 in New York yesterday. It was at 123.27 yen per euro from 122.99. The euro rose 0.1 percent against the dollar to $1.3621, after falling this week against all of its 16 major peers. The currency tumbled 1 percent against the dollar yesterday, the most since Feb. 17 after Greece’s prime minister set a one-week deadline for the European Union to craft financial aid for the nation, challenging Germany. The Swiss franc traded at 1.4377 euros, near its strongest level in 17 months, as an official said policy makers can’t prevent the currency’s advance indefinitely. European equity funds posted net outflows of $1.06 billion in the week ended March 17, the biggest withdrawals since May 2009, EPFR Global said in a statement. “The uncertainty about Greece is bugging the market, and until the issue is resolved, the market will be on the defensive,” said Sim Moh Siong, a foreign-exchange strategist at Bank of Singapore Ltd. Rising Bond Risk The cost of protecting bonds from default increased in Asia, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan climbed 1 basis point to 94 basis points, Citigroup Inc. prices show. The Markit iTraxx Japan index rose 0.5 basis point to 123.5 basis points, according to Morgan Stanley prices. The increase suggests deteriorating perceptions of credit quality. Crude oil fell for a second day in New York amid concern fuel demand in the U.S., the world’s biggest energy consumer, was slipping and as a stronger dollar damped the investment appeal of commodities. Oil dropped 0.3 percent to $81.92 a barrel. To contact the reporter for this story: Linus Chua at lchua@bloomberg.net

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