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Asian Stocks Advance on Greek Debt Deal Talks, Japan Industrial Production

31 Jan 2012

Asian stocks rose, with a regional benchmark index headed for its biggest monthly rally since September 2010, as Greek Prime Minister Lucas Papademos said major progress was made in debt-swap talks and Japan’s industrial production grew faster than economists estimated.

Fanuc Corp. (6954), Japan’s top maker of factory robots, added 1 percent. Sumitomo Mitsui Financial (8316) Group Inc., Japan’s second-largest lender by market value, rose 1.5 after saying it will meet its full-year profit forecast. ICICI Bank Ltd. (ICICIBC) climbed 5.9 percent in Mumbai after the Indian lender posted earnings that beat estimates. Daewoo Shipbuilding & Marine Engineering Co., the world’s third-biggest shipyard, jumped 6.5 percent after winning a contract from Kuwait Oil Tanker Co.

The MSCI Asia Pacific Index increased 0.7 percent to 122.96 as of 8:05 p.m. in Tokyo, with two shares rising for each that fell. The measure has risen 8 percent this month, the biggest such advance since September 2010, amid bets China will ease lending curb, the U.S. economy is improving and Europe is containing its debts crisis.

“We’ve seen some positive signs in Europe,” said Angus Gluskie, who oversees about $350 million as managing director at White Funds Management in Sydney. “We’re on a cusp of a Greek bond restructuring. They will agree on it but there will be some debate in the meantime.”

Greece aims to complete debt-swap talks with bondholders by the end of this week, Papademos told reporters after the European Union summit in Brussels. Papademos said he is“strongly committed” to reaching a deal. The country faces a 14.5 billion-euro bond payment ($19 billion) on March 20.

U.S. Futures

Japan’s Nikkei 225 Stock Average rose 0.1 percent. South Korea’s Kospi Index gained 0.8 percent and Hong Kong’s Hang Seng Index climbed 1.1 percent. China’s Shanghai Composite Index (SHCOMP)added 0.3 percent. Australia’s S&P/ASX 200 Index lost 0.2 percent.

Futures on the Standard & Poor’s 500 Index advanced 0.6 percent today. The gauge slid 0.3 percent in New York yesterday as a report showed U.S. consumer spending stalled in December.

The MSCI Asia Pacific Index gained 7.2 percent this year through yesterday, compared with increases of 4.4 percent by the S&P 500 and 3.3 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 1.3 times book value. That compares with 2.1 times for the Standard & Poor’s 500 Index in the U.S. and 1.4 times for the Europe Stoxx 600 Index in Europe.

A gauge of manufacturing shares led the advance among the 10 industry groups in the MSCI Asian gauge. Japanese machinery makers rallied as the nation’s factory production rose 4 percent in December from the previous month, the biggest increase in seven months.

Fanuc gained 1 percent to 12,810 yen in Tokyo. Hitachi Construction Machinery Co., which makes bulldozers and crawler cranes, climbed 2.9 percent to 1,510 yen. Komatsu Ltd. (6301), Japan’s biggest maker of construction equipment, rose 1 percent to 2,149 yen.