Asia stocks rise on US factory data, Ping An gains 2.7%

Singapore : Asian stocks rose, lifting the MSCI Asia-Pacific Index to a two-week high, as faster-than-estimated growth in US manufacturing supported confidence in global economic growth.

Sony Corp, an electronics maker that derives 22 per cent of its sales from the US, rose 2.2 per cent in Tokyo. Ping An Insurance (Group) Co gained 2.7 per cent in Hong Kong on plans to merge its bank unit with Shenzhen Development Bank Co.

Stock upgrade

GS Yuasa Corp, a Japanese car battery maker, gained 5.7 per cent after Credit Suisse Group AG upgraded the stock. Jiangxi Copper Co gained 2.8 per cent in Hong Kong as commodity prices advanced.

The MSCI Asia Pacific Index gained 1.1 per cent to 119.34 as of 5.32 pm in Tokyo, the highest level since August 19.

The gauge advanced 1.3 per cent on Wednesday after reports showed China's manufacturing and Australia's gross domestic product grew faster than economists estimated.

"The US manufacturing data served to allay fears of a double-dip recession," said Tim Schroeders, who helps manage about $1 billion (Dh3.6 billion) at Pengana Capital Ltd in Melbourne. "Yesterday's manufacturing report out of China was better than expected and Australia's buoyant GDP data also served to build investor confidence."

Japan's Nikkei 225 Stock Average gained 1.5 per cent, Hong Kong's Hang Seng Index jumped 1.2 per cent and Taiwan's Taiex Index climbed 0.7 per cent. South Korea's Kospi Index rose 0.6 per cent. China's Shanghai Composite Index increased 1.3 per cent as automakers advanced on higher car sales.

Futures on the Standard & Poor's 500 Index were little changed. The index climbed three per cent yesterday, the biggest gain since July 7, after the ISM's factory index rose to a three-month high of 56.3 in August.

Readings greater than 50 signal growth, and the figure was projected to drop to 52.8, according to the median forecast of economists in a Bloomberg News survey.

In Hong Kong, Ping An gained 2.7 per cent to HK$66.10, trading for the first time in the city since June 29.

The insurer, China's second largest, will pay 29.1 billion yuan (Dh15.7 billion) for a stake that will give it control of Shenzhen Development Bank. Shares of Shenzhen Development Bank rose 3.9 per cent to 18.19 yuan.

GS Yuasa climbed 5.7 per cent to 559 yen, extending yesterday's 6.9 per cent surge.

Credit Suisse Group AG raised the stock to "outperform" from "neutral." Phison Electronics Corp. surged 6.9 per cent to NT$146.5 in Taipei trading after Morgan Stanley raised the stock to "equal-weight" from "underweight."