Asian stocks rise as Greek fears ease, US jobs grow

Hong Kong: Asian stocks rose, driving the MSCI Asia Pacific Index higher for a third week, as better-than-estimated US jobs data and easing concern over Greece's debt spurred confidence in a global economic recovery.

Nissan Motor Company, which gets 35 per cent of its revenue in North America, climbed 9.1 per cent in Tokyo. China Life Insurance Company jumped 6.1 per cent after saying profit probably climbed more than 200 per cent. In Sydney, Telstra Corporationo, Australia's largest telephone company, rose 5.2 per cent on optimism it will avoid a breakup.

"Improving economic figures from the US bodes well for equities as it will help boost Asian exports," said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Company, which holds $65 billion (Dh238.6 billion) in assets. "Concerns about Greece have also been waning as investors are hoping the situation will be resolved soon."

The MSCI Asia Pacific Index gained 2.4 per cent this week. The gauge has lost 2.8 per cent since reaching a 17-month high on January 15 amid concern governments from China to India will start withdrawing economic-stimulus measures and that Greece will struggle to curb its budget deficit.

Concern in China

Hong Kong's Hang Seng Index rose 2 per cent in the week, while Australia's S&P/ASX 200 Index increased 1.1 per cent and South Korea's Kospi Index gained 1.7 per cent. The Shanghai Composite Index lost 0.6 per cent as a government report showing consumer prices rose the most in 16 months added to concern China will pare back stimulus measures that spurred growth.

Japan's Nikkei 225 Stock Average increased 3.7 per cent in the past five days amid speculation the nation's economy is recovering. The government will raise its economic assessment for the first time in eight months in a report to be released this week, public broadcaster NHK reported on March 12.

Nissan Motor surged 9.1 per cent to 764 yen (Dh30.97). Sony Corporation, which gets almost a quarter of its sales in the US, climbed 5.5 per cent to 3,380 yen.

US government figures on March 5 showed the jobless rate was at 9.7 per cent in February, while the median estimate of 80 economists surveyed by Bloomberg News projected an increase to 9.8 per cent. The data was released after the close of Asian stock markets that day.

"US employment is recovering steadily and consumption is starting to grow," said Akio Yoshino, chief economist at Societe Generale Asset Management (Japan) Incorporated, which manages the equivalent of $17 billion. "This steady pace of recovery is positive for the market."

Separately, French President Nicolas Sarkozy pledged last weekend to support Greece, saying the euro region is ready to rescue the country should it struggle to fund its deficit.

Arrow Energy Limited, Royal Dutch Shell Plc's coal-seam gas partner in Australia, surged 49 per cent to A$5.20 (Dh17.49). The stock posted the biggest advance in the MSCI Asia Pacific Index last week after the company received a takeover offer from Shell and PetroChina.

The MSCI World Index plunged 43 per cent in 2008, the most in its almost 40-year history, as losses and writedowns swelled to more than $1.7 trillion following the collapse of the US subprime-mortgage market and Lehman's bankruptcy, prompting investors to exit equities. Stocks have risen from their post- Lehman lows, boosted by efforts such as China's 4 trillion yuan (Dh2.14 trillion) in spending to stimulate growth.

The MSCI Asia Pacific Index's 62 per cent surge in the past 12 months compares with increases of 53 per cent for the S&P 500 and 49 per cent for the Stoxx Europe 600 Index. The Asian index's decline from its January high has cut the price of its constituent stocks to 18.7 times estimated earnings on average from 22.7 times at the end of 2009.

China Life jumped 6.1 per cent to HK$36.45 (Dh17.25) in Hong Kong. The nation's biggest insurer said on March 8 that profit may have climbed more than 200 per cent in 2009 from the previous year, amending a forecast for 50 per cent growth.

Consumer prices in China rose 2.7 per cent in February from a year earlier, the National Bureau of Statistics said on March 11. Zhou Xiaochuan, the governor of the People's Bank of China, said on March 6 that the nation should be careful in exiting stimulus policies.

In Sydney, Telstra climbed 5.2 per cent to A$3.06. Australian Communications Minister Stephen Conroy lacks support in the Senate to pass legislation that would force Telstra to split, according to a report in the Australian Financial Review last week.

• 9.1% increase in Nissan Motor Company stock
• 5.5% increase seen in Sony Corporation
• 62% MSCI Asia Pacific index surged in 12 months