Most Asian Stocks Climb as Topix Advances on U.S. Rally 

Most Asian stocks rose as Japan’s Topix index climbed after the yen extended losses and corporate earnings beat estimates.

Nissan Motor Co. (7201), which gets 43 percent of its revenue in North America, gained 1.4 percent. Amorepacific Corp. surged 9.3 percent in Seoul after the cosmetics maker reported higher earnings. Bank of China Ltd. soared 10 percent in Shanghai after a report it was chosen as the exclusive settlement bank for mainland shares traded through the bourse link with Hong Kong. Newcrest Mining Ltd., Australia’s biggest gold producer, slid 3.1 percent as bullion traded near a four-year low.

About three shares rose for every two that fell on the MSCI Asia Pacific Index (MXAP), which lost less than 0.1 percent to 140.79 as of 4:10 p.m. in Hong Kong. The Topix climbed 1.1 percent to its highest close since June 2008 as yen fell as much as 0.9 percent against the dollar. The Japanese equity gauge added 7.5 percent since Oct. 30, the day before the Bank of Japan expanded stimulus and the nation’s pension fund said it will boost domestic stock holdings.

“The BOJ’s easing keeps the yen in a downtrend, adding tailwinds especially to manufacturers,” said Koji Toda, chief fund manager at Resona Bank Ltd. “Investors want to be bullish on stocks, but they can’t buy a lot more because the market has already gone up.”

Investors are awaiting a Nov. 17 report on Japan’s third-quarter economic growth, which will help Prime Minister Shinzo Abe decide on another sales-tax increase next year. Japan’s top government spokesman didn’t reject media reports that Abe is considering calling a snap election next month should he decide to postpone the hike.

Japan Tax

“We don’t know what will happen, but if the tax increase is delayed, that will be positive for the stock market,” said Ryuta Otsuka, a Tokyo-based strategist at Toyo Securities.

South Korea’s Kospi index added 0.2 percent. New Zealand’s NZX 50 Index rose 0.4 percent. The Jakarta Composite Index climbed 1.4 percent. Hong Kong’s Hang Seng Index (HSI) gained 0.3 percent. Taiwan’s Taiex index lost 0.2 percent. Australia’s S&P/ASX 200 Index dropped 0.1 percent. Singapore’s Straits Times Index fell 0.3 percent.

China’s Shanghai Composite Index lost 0.2 percent, falling from a three-year high. The gauge erased gains of as much as 1.4 percent after mid-cap shares plunged, and trading value on the Shanghai exchange was the highest on record. Stocks jumped yesterday after regulators said the trading link between the city and Hong Kong would start Nov. 17.

U.S. Rally

Futures on the Standard & Poor’s 500 Index gained 0.1 percent today. The equity benchmark added 0.3 percent yesterday. U.S. indexes have been reaching records amid signs the economy is weathering a global slowdown and the end of the Federal Reserve’s bond-buying program. Dean Foods Co. rallied 14 percent after reporting profit that topped forecasts.

“Valuations have risen to what I would regard to be an expensive territory,” Steven Milch, Sydney-based chief economist at Suncorp Group Ltd. “Of all the markets the U.S. is probably the most expensive. The U.S. market has probably seen its best gains. There’s greater upside for markets like Japan and Europe.”

Source: Bloomberg – Most Asian Stocks Climb as Topix Advances on U.S. Rally

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