Singapore: Asian stocks rose for the third week this month as a report showed US retail sales increased last week and China reported "concrete action" to help stabilise Europe's economy.
Canon Inc., which is the world's largest maker of cameras and gets more than a quarter of its sales from the US and almost a third from Europe, increased 3 per cent in Tokyo last week. BHP Billiton Ltd, the world's biggest mining company and Australia's largest oil producer, climbed 2.2 per cent in Sydney as metals prices rose. Posco, the world's No. 2 producer of stainless steel, gained 1.3 per cent in Seoul after MoneyToday said the company is considering an acquisition.
"All in all, stability — both economic and political — will always be well received by investors," said Prasad Patkar, who helps manage about $1.8 billion (Dh6.6 billion) in Sydney at Platypus Asset Management Ltd. "Markets are in a seasonally strong period but volumes are thin, which is also typical for this time of the year."
The MSCI Asia Pacific Index climbed 1.2 per cent to 135.19 last week. The gauge closed higher on three out of five days, and rose the most on December 21.
Japan's Nikkei 225 Stock Average dropped 0.2 per cent. South Korea's Kospi index climbed 2 per cent. Australia's S&P/ASX 200 Index gained 0.3 per cent. Hong Kong's Hang Seng Index increased 0.5 per cent, and the Shanghai Composite Index fell 2 per cent.
Markets in Australia, Hong Kong and Singapore shut early on Friday for Christmas Eve.
The MSCI Asia Pacific Index has risen 12 per cent this year on speculation that growth in corporate profits will weather Europe's debt crisis, Chinese steps to curb property-price inflation and concern about the pace of the US economic rebound.
Estimated earnings
Stocks in the gauge are valued at about 15 times estimated earnings on average, compared with 23 times at the start of the year. The index plunged 43 per cent in 2008 and rebounded 34 per cent last year, its biggest gain since 2003.
Canon climbed 3 per cent to 4,270 yen in Tokyo. HTC Corp., the Taiwanese mobile phone maker that counts America as its biggest market, increased 3.2 per cent to 900 new Taiwan dollars in Taipei.
Same-store sales at a selection of US retailers rose 4.2 per cent last week, the biggest jump of this holiday season, as more consumers finished shopping, according to a survey of retailers released on December 21.
"US economic indicators continue to exceed expectations and the US economy is on a recovery trend," said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. "The global economic recovery, surplus money and confidence in government measures are boosting commodity prices."
China supports International Monetary Fund measures and "has taken concrete action to help some European Union members counter the sovereign-debt crisis," Chinese Vice Premier Wang Qishan said at a forum on economic relations last week.
The statement "should support risk appetite generally because Europe has been occupying the minds of investors for most of the year," said Platypus Asset's Patkar. BHP Billiton advanced 2.2 per cent to A$46.04 in Sydney. Rio Tinto Group, the world's third-biggest mining company, gained 0.8 per cent to A$86.36.
Mitsui & Co., which counts commodities as its biggest source of profit, gained 1.1 per cent to 1,326 yen in Tokyo.
Metal index
The London Metal Exchange Index of six metals including copper and aluminium gained 2.3 per cent in the past five days for a fourth consecutive weekly climb.
In Seoul, Posco advanced 1.3 per cent to 473,500 won last week.
The company is considering buying a stake in Korea Express Co., an operator of ships, terminals and express-delivery trucks, MoneyToday reported, without citing anyone.
