Datong Coal Industry Co. increased 3.1 percent in Shanghai as an index of the country’s manufacturing industry rose in March. Samsung Electronics Co., which generates more than 80 percent of its revenue outside South Korea, gained 3.3 percent after a government exports report beat economist estimates. Dai- ichi Life Insurance Co. surged 14 percent on its first day of trading. Lihir Gold Ltd. soared 33 percent in Sydney after rejecting a bid from Australia’s largest gold producer.
The MSCI Asia Pacific Index increased 1 percent to 126.38 as of 5:26 p.m. in Tokyo. The gauge has climbed 11 percent from a more-than-two-month low on Feb. 8 as improving U.S. jobs data, a Federal Reserve pledge to keep borrowing costs low and a Japanese bank-lending program eased concern that budget deficits in Europe will derail the revival in the global economy.
“The data will remain supportive even for the second quarter of this calendar year,” said Prasad Patkar, who helps oversee about $1.8 billion at Platypus Asset Management in Sydney. “The more skeptical view or concerns are in the second half of this year where the underlying economic activity will be a bit more exposed, rather than the stimulus-induced activity which the skeptics believe is what we’re seeing today.”
The Nikkei 225 Stock Average rose 1.4 percent in Japan, where a government report showed confidence among the country’s largest manufacturers advanced for a fourth-straight quarter.
Regional Indexes
China’s Shanghai Composite Index climbed 1.2 percent. Hong Kong’s Hang Seng Index gained 1.4 percent, with Cheung Kong (Holdings) Ltd. pacing gains among property developers on rising home sales.
South Korea’s Kospi Index rose 1.6 percent to the highest level since Jan. 21. India’s Sensitive Index gained 0.7 percent after a report from HSBC Holdings Plc and Markit Economics showed manufacturing grew for a 12th straight month in March.
Futures on the Standard & Poor’s 500 Index increased 0.5 percent. The gauge decreased 0.3 percent yesterday as private reports showed employers unexpectedly cut jobs this month and business activity grew less than forecast.
In Shanghai, Datong Coal, China’s third-largest coal company by capacity, rose 3.1 percent to 37.98 yuan. Baoshan Iron & Steel Co., the nation’s biggest steelmaker, added 1.5 percent to 8 yuan.
Higher Offer
China’s Purchasing Managers’ Index rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group, a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. The figure was in line with the median estimate in a Bloomberg News survey of 13 economists. Readings above 50 indicate expansion.
Henan Yinge Industrial Investment Holding Co. jumped 3.7 percent to 10.16 yuan, pacing gains among paper manufacturers on speculation a stronger economy will push the government to allow currency gains, benefitting raw-material importers.
“The economy is in a good shape and growth is still gaining momentum,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “We are definitely in a growth cycle.”
The MSCI Asia Pacific Index climbed 3.9 percent last quarter, compared with 2.7 percent for the MSCI World Index, as economic data improved. The Asian gauge’s increase was its fourth-straight quarterly advance, lifting the average price of companies to 1.6 times corporate net worth, the highest level since September 2008.
South Korean Exports
Japan’s Tankan index of business sentiment rose to minus 14 in March from minus 25 in December, the fourth-straight gain, the Bank of Japan said today in Tokyo. South Korea’s government said today that overseas shipments advanced 35.1 percent in March from a year earlier, more than the 31.7 percent economists in a Bloomberg News survey estimated.
In Seoul, Samsung Electronics, Asia’s biggest maker of chips, flat screens and mobile phones, climbed 3.3 percent to 845,000 won, the leading mover on the MSCI Asia Pacific Index. Hyundai Motor Co., South Korea’s largest automaker, rose 4.8 percent to 121,000 won after reporting a 36 percent increase in monthly sales.
Commodity-related shares gained after oil and metals prices climbed yesterday. Crude-oil futures surged 1.7 percent to $83.76 a barrel yesterday in New York. The London Metals Index, a measure of six metals including copper and zinc, gained for the fifth day yesterday.
Commodity Prices
Mitsubishi Corp., which gets about 40 percent of sales from commodities, increased 1.5 percent to 2,487 yen. BHP Billiton Ltd., the world’s largest mining company, rose 0.8 percent to A$43.95. Rio Tinto Group, the world’s third-largest mining company, advanced 1.5 percent to A$79.60.
“A gain in commodity prices is showing strong business confidence,” said Mitsushige Akino, who oversees the equivalent of $450 million in Tokyo at Ichiyoshi Investment Management Co.
Lihir, the second-largest gold mining company on the Australian stock exchange, surged 33 percent to A$4.04. The company said a A$9.2 billion ($8.4 billion) cash and stock takeover from Newcrest Mining Ltd. was inadequate. Newcrest gained 2.9 percent to A$33.78.
CSR Ltd., Australia’s second-largest building products maker, jumped 6 percent to A$1.755. Bright Food Group Co., Shanghai’s biggest food company, raised its offer for CSR’s sugar unit to A$1.75 billion after the Australian company’s plan to spin off the division was blocked on asbestos concerns.
Dai-ichi Life
In Tokyo, Dai-ichi Life, Japan’s No. 2 life insurer, rose 14 percent to 160,000 yen from its initial offering price of 140,000 yen. Trading was halted as soon as the initial price was set.
Dai-ichi’s $11 billion IPO is the world’s largest since San Francisco-based Visa Inc. sold $19.7 billion of shares in March 2008. The stock was the most traded by volume on the Tokyo Stock Exchange’s first section, according to data compiled by Bloomberg.
“The fact that it opened at 160,000 means that investors are quite bullish,” said Curtis Freeze, chairman of Honolulu- based Prospect Asset Management Inc., which has $1 billion of assets. “The market’s reaction is positive, thanks to this pricing because that means there’s a lot of pent up demand for Japanese stocks.”
Shipping stocks advanced after the Baltic Dry Index rose for the first time since March 15, snapping its worst losing streak of the year, on demand to ship Australian iron ore to China. The index gained 0.5 percent yesterday, according to the Baltic Exchange.
Kawasaki Kisen Kaisha Ltd., Japan’s third-biggest shipping line, climbed 2.4 percent to 382 yen. STX Pan Ocean Co., South Korea’s biggest bulk carrier, rose 4.1 percent to 13,950 won. Korea Line Corp., the second-biggest, gained 2.5 percent to 64,600 won.
In Hong Kong, Cheung Kong advanced 2.5 percent to HK$102.50 after Centaline Property Agency Ltd. said existing home sales in the city rose 59 percent last month from February. New World Development, controlled by billionaire Cheng Yu-tung, gained 1.2 percent to HK$15.28.
