Asian Stocks Rises

Asian stocks rose, driving the Nikkei 225 Stock Average to a seven-year high, on signs economic growth in Japan and South Korea is accelerating.

Komatsu Ltd. gained after a government report showed machinery orders in Japan rose more than forecast in May. Samsung Electronics Co. led the Kospi index, the world's best performer this month, to a fourth straight high after the commerce ministry raised its forecast for South Korean exports. BHP Billiton Ltd., Australia's largest oil explorer, climbed for an eighth day as crude traded near a 10-month high.

``It looks like machinery orders for the past quarter will be better than people anticipated,'' said Masaru Hamasaki, senior strategist at Toyota Asset Management Co., which oversees $3.3 billion in Tokyo. ``Rising commodity prices is a long-term trend that may last another two years.''

The Morgan Stanley Capital International Asia-Pacific Index added 0.6 percent to 157.14 as of 12:18 p.m. in Tokyo, set for a record. The measure slipped 0.1 percent to 156.23 on July 6, after gaining 2.3 percent in the month's first four trading days.

The Nikkei 225 added 0.6 percent to 18,240.84, heading for its highest close since May 2000. The Kospi jumped 1.5 percent, taking its advance this month to 8.4 percent. Benchmarks climbed elsewhere in the region, except in the Philippines.

High Tech Computer Corp. led Taiwan's Taiex higher for a sixth day ahead of trade data due today that may show exports climbed last month. Singapore's Straits Times Index was poised for its biggest gain in three weeks, led by DBS Group Holdings Ltd., on expectations the government will say economic growth accelerated in the second quarter from the previous three months.

Orders, Exports

U.S. shares climbed on July 6, helped by takeovers and improved earnings prospects for energy companies. The Standard & Poor's 500 Index completed its biggest weekly advance since April.

Komatsu, the world's second-largest maker of earthmoving equipment, added 1.6 percent to 3,790 yen. Fanuc Ltd., a maker of industrial robots, rose 0.9 percent to 12,810 yen.

Machinery orders in May climbed a seasonally adjusted 5.9 percent from the previous month, Japan's Cabinet Office said, more than three times the 1.9 percent median estate of economists surveyed by Bloomberg. In South Korea, the commerce ministry said exports will rise 12.8 percent this year to $367 billion, higher than an earlier forecast for 10.6 percent growth.

Samsung, which accounted for about 16 percent of South Korea's exports last year, jumped 3 percent to 646,000 won. The shares also gained after Hyundai Securities Co. said prices for dynamic random access memory will rise in the first half of July.

Kookmin Bank, South Korea's largest lender by assets, added 0.8 percent to 85,300 won. Woori Finance Holdings Co., the No. 3 financial company by assets, gained 1.7 percent to 24,400 won.

Taiwan, Singapore

High Tech Computer, the world's biggest maker by volume of handsets based on Microsoft Corp.'s Windows operating system, jumped 2.4 percent to NT$608 in Taipei. Exports probably climbed 5.5 percent in June, faster than May's 3.5 percent increase, according to economists surveyed by Bloomberg.

Singapore's Straits Times rose 1.1 percent, the most since June 18, after a Bloomberg survey of analysts predicted the trade ministry will say tomorrow that the economy expanded an annualized 7.7 percent in the three months ended June. Growth was 7.6 percent in the first quarter. DBS Group Holdings, Singapore's biggest bank, advanced 1.8 percent to S$23.30.

``The economy continues to look strong and that's providing a catalyst for the stock market,'' said Daphne Roth, vice president of equity research at ABN Amro Private Banking in Singapore.

SM Prime Holdings Inc., the Philippines' largest shopping mall operator, surged 4 percent to 13 pesos. The government's Development Budget Coordination Committee raised its 2008 economic growth forecast to as much as 6.8 percent from a maximum 6.6 percent, the Philippine Star reported, citing unidentified people. The Cabinet is yet to approve the revision, the newspaper said.

Getting a Lift

BHP gained 2.5 percent to A$38.49, extending a seven-day, 9.8 percent rally. Inpex Holdings Inc., Japan's largest oil explorer, climbed 1.7 percent to 1.18 million yen. PetroChina Co., Asia's biggest oil company, added 1.6 percent to HK$12.40.

Crude oil for August delivery jumped 1.4 percent to $72.81 a barrel on July 6 in New York, the highest since Aug. 15. Futures were recently trading at $72.56.

Potential Suitor

Shares of BHP also climbed after London's Sunday Times reported yesterday that the company is a potential suitor for Alcan Inc., which is fighting a $28 billion hostile bid from Alcoa Inc.

Rio Tinto Group hired Canadian Imperial Bank of Commerce to advise on a possible bid for Alcan, the newspaper reported, without citing anyone. Rio Tinto, the world's third-largest mining company, gained 0.7 percent to A$102.80.

``The resources sector, including energy shares, are being lifted as much by speculation of consolidation as by expectations of higher commodities prices,'' said Tom Murphy, who helps manage $1 billion in Asian assets at Deutsche Bank AG in Sydney.

Meanwhile, Towa Pharma Co., Japan's No. 1 generic drugmaker by market value, jumped after the Nikkei newspaper said companies including Mitsubishi Electric Corp. are encouraging employees to use low-cost generic drugs to cut health-insurance costs.

Towa Pharma jumped 3.2 percent to 5,200 yen. Sawai Pharmaceutical Co., Japan's largest generic drugmaker by sales, rose 2.6 percent to 4,440 yen.

Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest maker of ships, surged 5.8 percent to 61,600 won in South Korea.

The company said yesterday that it boosted its annual orders target by 55 percent to $17 billion. Daewoo Shipbuilding met its earlier projection of $11 billion after winning container-ship orders worth $1.8 billion from two buyers in Europe.

source:bloomberg.com