Asian Stocks Rise on U.S. Data; Dividends Drag on Japan

By Yoshiaki Nohara

Asian shares rose after U.S. home prices climbed the most since 2006 and orders for durable goods beat estimates. Gains by Japanese shares were limited as about 80 percent of the companies in the Topix Index traded without rights to a dividend today.

Techtronic Industries Co. (669), a maker of power tools that gets most of its sales in North America, climbed 1.1 percent in Hong Kong. Bank of China Ltd., the nation’s fourth-largest lender, increased 2 percent in Hong Kong after posting better-than- estimated profit growth. Sumitomo Rubber Industries Ltd., Japan’s second-biggest tire maker, jumped 4.6 percent after its equity rating was raised to outperform at Mitsubishi UFJ Morgan Stanley Securities Co. The MSCI Asia Pacific Index gained 0.2 percent to 135.86 as of 2:26 p.m. in Tokyo, with about seven shares rising for every four that fell. The MSCI Asia Pacific ex-Japan Index advanced 0.6 percent to 473.89, while the Topix was little changed.

“Stocks would’ve risen a lot without shares going ex- dividend,” said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about 15 trillion yen ($158 billion). “The U.S. is experiencing the best scenario in that its economy is going strong while risk remains for the rest of the world, namely Europe.”

The MSCI Asia Pacific Index rose 4.8 percent this year through yesterday on improving economic data from the U.S. and speculation that Japan will deploy more stimulus. The Asia benchmark traded at 15 times estimated earnings on average, compared with 14.2 times for the Standard & Poor’s 500 Index and 12.6 times for the Stoxx Europe 600 Index.

Kospi Rises

Gains in Japanese shares were limited because 1,330 of the 1,696 companies on the Topix if bought today wouldn’t receive a dividend for the most recent period. Among them was Toyota Motor Corp. (7203), the world’s No. 1 carmaker, which was little changed at 4,905 yen.

South Korea’s Kospi Index gained 0.4 percent as the nation’s consumer sentiment index rose this month to the highest since May 2012. Australia’s S&P/ASX 200 rose 0.9 percent and New Zealand’s NZX 50 Index advanced 1.5 percent.

Hong Kong’s Hang Seng Index rose 0.7 percent as Li Ka- shing, Asia’s richest man and owner of developer Cheung Kong Holdings Ltd., backed property curbs by the government.

China’s Shanghai Composite Index added 0.3 percent, while Singapore’s Straits Times Index gained 0.6 percent. Taiwan’s Taiex Index (TWSE) advanced 0.3 percent even as a magnitude 6.1 earthquake shook parts of the island.

Futures on the S&P 500 Index (SPXL1) gained 0.1 percent today. The measure rose 0.8 percent in New York yesterday, as residential real estate prices increased in January by the most since June 2006, according to the S&P/Case-Shiller index.

Durables Orders

Orders for U.S. durable goods climbed more than forecast in February, propelled by automobiles and a rebound in commercial aircraft, a Commerce Department report showed.

“Average U.S. investors feel more secure about their jobs, seeing their house prices go up, and think the crisis is well behind them,” said Andrew Pease, Sydney-based chief investment strategist at Russell Investment Group, which manages about $160 billion. “We like emerging markets and Asia simply because, even though there’s concern about Chinese policy tightening, earnings numbers still look good.”

Companies that do business in the U.S. advanced, with Techtronic rising 1.1 percent to HK$18.90. James Hardie Industries SE (JHX), a building-materials supplier that gets 67 percent of sales from the U.S., climbed 1.2 percent to A$9.82 in Sydney.

Bank of China advanced 2 percent to HK$3.62 after net income rose to 139.4 billion yuan ($22 billion) from a restated 124.3 billion yuan a year earlier, beating the 132.6 billion- yuan average estimate of 31 analysts compiled by Bloomberg. Agricultural Bank of China Ltd., the nation’s third-largest lender, gained 1.3 percent to HK$3.83 after reporting a 19 percent increase in profit to 145.1 billion yuan.

To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net

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