Asian Stocks Advance on U.S. Jobless Claims, BOJ Governor

By Jonathan Burgos 

Asian stocks rose, with the regional benchmark index poised to advance for a fourth week, after U.S. jobless claims unexpectedly dropped and as Japan’s upper house confirmed Haruhiko Kuroda as central bank governor.

Honda Motor Co. (7267), the Japanese carmaker that gets 44 percent of sales from North America, gained 2.3 percent. Sony Corp., Japan’s biggest exporter of consumer electronics, jumped 9.7 percent after Daiwa Securities Group Inc. recommended buying the shares. China Southern Airlines Co. advanced 4.9 percent, pacing gains among Chinese carriers after Shanghai Securities News reported plans to build more airports to meet increasing demand in the world’s second-largest economy. The MSCI Asia Pacific Index (MXAP) climbed 0.8 percent to 136.35 as of 1:17 p.m. Tokyo time, with more than two shares rising for each that fell. The gauge is heading for a 0.6 percent advance this week as a faster-than-expected increase in U.S. retail sales and a decline in weekly jobless claims added to signs the world’s biggest economy is recovering.

“There’s a level of confidence to say that the economic momentum, albeit tepid, is still positive,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne. “That supports an asset allocation move out of bonds and into equities. China remains a risk, with increasing concerns about bubbles developing in the property market.”

This week’s gain in the Asian benchmark has been limited by data that showed China’s consumer prices rose at the fastest pace in 10 months and People’s Bank of China Governor Zhou Xiaochuan saying monetary policy is “no longer relaxed.”

Emergency Meeting

Japan’s Nikkei 225 Stock Average increased 1.2 percent, extending its advance toward the highest level since September 2008. Kuroda, an advocate of aggressive monetary policy easing, was confirmed asBank of Japan (8301) governor today by parliament’s upper house, along with deputy governor nominees Kikuo Iwata and Hiroshi Nakaso. Current governor Masaaki Shirakawa and his deputies step down on March 19.

There’s talk of a possible emergency meeting for the BOJ, said Kenichi Kubo, a senior fund manager at Tokio Marine Asset Management Co., which oversees about $52 billion. “If it happens, it could introduce drastic measures,” he said. The central bank’s next policy meeting is scheduled for April 3-4.

The MSCI Asia Pacific Index climbed 4.6 percent this year through yesterday as central banks around the world maintained loose monetary policies to stimulate the global economy and Japanese shares rallied on speculation Prime Minister Shinzo Abe will step up efforts to revive economic growth. Shares on the gauge traded at 14.8 times estimated earnings compared with 14 times for the Standard & Poor’s 500 Index and 12.7 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Record Run

New Zealand’s NZX 50 Index (NZSE50FG) added 0.1 percent, poised for a record close and a fourth week of advance after after central bank governor Graeme Wheeler pledged to keep borrowing costs at a record low until next year. Australia’s S&P/ASX 200 Index advanced 1.4 percent, while Singapore’s Straits Times Index added 0.6 percent.

Hong Kong’s Hang Seng Index (HSI) rose 0.8 percent, erasing an earlier loss of 0.3 percent. The Shanghai Composite Index jumped 1.7 percent after swinging between gains and losses. Taiwan’s Taiex Index added 0.1 percent, paring an earlier advance of 0.6 percent. South Korea’s Kospi Index dropped 0.5 percent, reversing an increase of 0.4 percent.

Futures on the S&P 500 Index added 0.1 percent today. The Dow Jones Industrial Averageyesterday extended the longest rally since 1996 as Labor Department data showed the number of Americans filing applications for unemployment benefits dropped last week to the lowest level in almost two months, while confidence among U.S. consumers increased for a sixth straight week.

‘Growing Optimism’

“Growing optimism about the U.S. economy pushes markets up, even though concerns about China continue to linger,” said Matthew Sherwood, head of investment markets research in Sydney at Perpetual Investments, which manages about $25 billion.

Exporters advanced. Honda climbed 2.3 percent to 3,810 yen in Tokyo. Toyota Motor Corp., the world’s biggest carmaker, rose 1.2 percent to 5,010 yen. Techtronic Industries Co. (669), the maker of Ryobi power tools that gets about 72 percent of revenue from North America, jumped 4.6 percent to HK$18.40 in Hong Kong.

Sony Corp., Japan’s biggest exporter of consumer electronics, jumped 9.7 percent to 1,649 yen after Daiwa Securities Group Inc. raised its rating to buy from neutral, saying it anticipates “dramatic earnings turnaround.”

Nikon Corp. (7731), which makes cameras and chip-manufacturing equipment, rose 2.2 percent 2,254 in Tokyo after the Nikkei newspaper reported that the company won a 6 billion yen ($62 million) order from its second-biggest customer Intel Corp. (INTC)

Chinese Airlines

Chinese airlines rallied. China should increase investment for airport construction as facilities in the country won’t be able to meet travel demand, Shanghai Securities News reported, citing Li Jiaxiang, head of the Civil Aviation Administration of China. Air passenger and cargo volumes will grow faster this year that in 2012, he said.

China Southern Airlines jumped 4.9 percent to HK$4.32 in Hong Kong. Air China Ltd. (753), the world’s second-biggest carrier by market value, gained 3.2 percent to HK$6.49. China Eastern Airlines Corp. advanced 4 percent to HK$3.40.

Energy companies advanced as crude oil futures climbed to the highest level since Feb. 20. Woodside Petroleum Ltd., Australia’s second-largest oil producer, rose 2 percent to A$36.95 in Sydney. Inpex Corp. (1605), Japan’s biggest energy explorer, added 1.7 percent to 532,000 yen in Tokyo.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net

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