Asian stocks rose as higher earnings from Olympus Corp. and Hang Seng Bank Ltd. helped the region's benchmark post its longest monthly winning streak in 20 years.
BHP Billiton led gains by miners on speculation profits will climb along with metals prices. Disappointing earnings from Kyocera Corp. and Kookmin Bank capped today's advance.
``The market is completely focused on earnings,'' said Yoshihisa Okamoto, a Tokyo-based fund manager at Mizuho Asset Management Co. with $26 billion in assets. ``Investors are getting away from companies with disappointing earnings and switching into ones that exceeded expectations.''
The Morgan Stanley Capital International Asia Pacific Index added 0.3 percent to 155.69 at 1:46 p.m. in Tokyo. It has climbed 1.8 percent this month, set for its 10th straight monthly advance. That's the longest series of gains according to historical data on the index stretching back to January 1988.
Taiwan's Taiex Index jumped 1.7 percent, the biggest advance in Asia today, led by Quanta Computer Inc. on a report it will regain an order from Toshiba Corp. to make notebook computers.
Japan's Topix lost 0.2 percent, while the Nikkei 225 Stock Average declined 0.4 percent. Government reports showed the country's wages fell in June for a seventh month and household spending rose less than economists expected. The unemployment rate dropped to a nine-year low of 3.7 percent.
Hong Kong's Hang Seng Index gained 1.1 percent. All other markets in the region rose, except New Zealand.
Earnings
Asian shares have climbed in the past 10 months amid expectations earnings at companies in regional emerging markets such as China and India will surpass the rest of the world. MSCI's Asian index climbed 21 percent in that time, beating the MSCI World's 14 percent gain.
Olympus, the world's biggest maker of endoscopes, advanced 6.1 percent to 4,910 yen. The company said first-quarter profit more than doubled to 17.6 billion yen ($148 million) from a year earlier, buoyed by a weaker yen and higher sales of medical equipment. Olympus raised its net income forecast by 10 percent.
Shinsei Bank Ltd. jumped 7.1 percent to 451 yen. The first Japanese bank bought by overseas investors said first-quarter net income surged 63 percent on increased lending and fees.
Hang Seng Bank, Hong Kong's second-largest lender by assets, gained 4 percent to HK$117.40, its biggest gain since Sept. 28, 2001. The company said first-half profit rose 43 percent, exceeding some analysts' predictions, on growth in lending, stock-trading fees and a one-time gain.
HSBC, CapitaLand
The lender's share-price target was raised at brokerages including Morgan Stanley and Citigroup Inc. after the earnings.
HSBC Holdings Plc, Hang Seng Bank's parent and Europe's largest bank, added 1.8 percent to HK$143.80. The company said first-half profit rose 25 percent, also more than some analysts expected, as investment gains in China overcame rising costs from bad mortgage loans in the U.S.
Singapore's CapitaLand Ltd., Southeast Asia's largest developer, gained 2.1 percent to S$7.40. The company said second- quarter profit rose fivefold to a record as it sold more homes in Singapore and China and the value of assets surged.
``Generally, earnings in Asia are supportive,'' said Henry Chan, who helps oversee more than $10 billion of equities in Hong Kong as Baring Asset Management (Asia) Ltd.'s head of Asian investments. ``To really see some significant growth you'll have to look at specific companies or themes.'' He favors Chinese infrastructure and machinery stocks.
`Margin Compression'
Limiting the index's advance, Kyocera, a maker of mobile phones for KDDI Corp., fell 6.9 percent to 11,430 yen. The company said yesterday profit in its components business fell 8.4 percent because of lower prices and oversupply.
Kookmin, South Korea's largest bank, slid 3.1 percent to 80,300 won. The company said second-quarter profit slumped 70 percent because of back taxes related to the 2003 takeover of its credit-card unit. Net interest margin, or the percentage of income to interest-bearing assets, fell to 3.48 percent in the period from 3.6 percent in the previous quarter.
``The bank's margin compression was much worse than our expectation and its peer banks,'' Ha Sun Mok, an analyst at Credit Suisse Group, wrote in a report.
BHP, the world's largest mining company, added 0.7 percent to A$37.03. Zinifex Ltd., the world's No. 3 zinc producer, jumped 2.6 percent to A$19.74. Jiangxi Copper Co., China's second- biggest producer of the metal, rose 2 percent to HK$15.06 in Hong Kong. Zijin Mining Group Co., which runs China's largest gold mine, climbed 2.7 percent to HK$6.06.
More Investment
Copper futures in New York yesterday added 1.2 percent, the biggest gain since July 20. Gold rose 0.6 percent, ending a three-day decline. A measure of six metals including copper and nickel traded on the London Metal Exchange rose 0.5 percent.
Taiwan's Quanta Computer, the world's largest maker of notebook computers, jumped 3.3 percent to NT$53.60. The company will likely regain an order from Japan's Toshiba to make notebook computers after losing the contract last year, the Apple Daily reported, without citing anyone.
The Taiex Index also rose as investors judged a four-day, 6.9 percent slump excessive. The Commercial Times reported the stock market regulator as saying the island's mutual funds may invest NT$100 billion ($3 billion) in domestic shares in the second half.
``Investors have regained their composure after being knocked around in the global stock market turmoil,'' said Vickie Hsieh, who helps oversees $1.4 billion at President Investment Trust Corp. ``Leading Taiwan companies offering good value will be the most appealing.''
source:www.bloomberg.com
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