Aug. 24 (Bloomberg) -- Asian stocks rose, led by commodities producers, as copper and oil prices increased and sales of existing homes in the U.S. surged the most on record, fueling speculation a global economic recovery is strengthening.
BHP Billiton Ltd., the world’s biggest mining company, gained 4.1 percent in Sydney. Woodside Petroleum Ltd. rose 3.9 percent, and Komatsu Ltd., a Japanese maker of construction equipment added 2.7 percent. Hyundai Motor Co., South Korea’s largest automaker, climbed 5.3 percent in Seoul after the company appointed a new vice chairman.
“The fundamentals of the global economy and corporate earnings are improving, supporting the resilience of the market,” said Yoshinori Nagano, a senior strategist at Tokyo- based Daiwa Asset Management Co., which oversees the equivalent of $91 billion. “The housing report confirmed the U.S. is clearly on a path to recovery.”
The MSCI Asia Pacific Index rose 2.1 percent to 112.37 as of 10:33 a.m. in Tokyo, with about 14 times as many stocks gaining as retreating. All 10 industry groups climbed, led by materials producers. Japan’s Nikkei 225 Stock Average added 3.1 percent to 10,559.40, with only four stocks falling. All Asian benchmark gauges open for trading advanced.
In New York, the Standard & Poor’s 500 Index climbed 1.9 percent on Aug. 21 to a level not seen since Oct. 6. Purchases of existing U.S. homes jumped 7.2 percent in July, the most since the tallies began in 1999, the National Association of Realtors said. Federal Reserve Chairman Ben S. Bernanke said the global economy is “beginning to emerge” from recession.
Mining, Oil
BHP added 4.1 percent to A$38.11 after copper futures climbed 5.1 percent in New York on Aug. 21, the steepest gain since June 1. Rio Tinto Group Ltd., the world’s third-biggest mining company, advanced 4.2 percent to A$58.70.
Komatsu, the world’s second-largest maker of construction machinery, rose 2.7 percent in Tokyo, and Mitsubishi Corp., a Japanese trading company that gets more than a third of its sales from commodities, advanced 3.6 percent.
Woodside Petroleum, Australia’s second-largest oil and gas producer, rose 3.9 percent to A$48.40. Also in Sydney, Santos Ltd., an explorer seeking to develop three liquefied natural gas projects, climbed 4 percent to A$15.50. Inpex Corp., Japan’s biggest energy explorer, surged 4.3 percent to 750,000 yen.
Oil traded near a 10-month high in New York today on speculation demand will increase as the global economy emerges from the deepest recession since World War II.
Australian Banks
Australian banks rallied on speculation a recovery will reduce loan losses and spur credit growth. National Australia Bank Ltd., the nation’s largest by assets, climbed 2.9 percent to A$26.42 in Sydney. Australia & New Zealand Banking Group Ltd., Australia’s fourth-biggest lender, gained 2.8 percent to A$19.57.
Shares on the MSCI Asia Pacific Index traded at 23.7 times their estimated net income on Aug. 21, the lowest level in a month. The gauge dropped 3.2 percent last week, the most since the five days ended June 19, on concern China will curb bank lending, hampering growth.
Hyundai Motor rallied 5.3 percent to 108,500 won, as the company named Chung Eui Sun, the only son of the company’s chairman, vice chairman in charge of planning and sales.
Japanese exporters got a further boost from the strengthening dollar, which lifts the value of overseas sales at Japanese companies when converted into their home currency. The dollar gained to as much as 94.70 yen today from 93.77 at the close of Tokyo stock trading on Aug. 21.
Canon Inc., the world’s biggest maker of digital cameras and which gets a third of its sales from the Americas, added 4.9 percent to 3,670 yen. Honda Motor Co., a carmaker which gets more than half its sales in North America, gained 3.2 percent to 3,050 yen, while bigger rival Toyota Motor Corp. rose 3 percent to 4,100 yen.
“Japanese exporters are discounted as investors are wary of U.S. consumer spending,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “The home-sales report will likely help narrow this discount.”
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