Asia news

Asian Stocks Rise Most in Seven Weeks; Macquarie, Samsung Gain
By Chen Shiyin

April 2 (Bloomberg) -- Asian stocks advanced the most in seven weeks, led by banks and electronics makers, on speculation financial companies will be able to overcome a freeze in credit markets and shore up global economic growth.
Macquarie Group Ltd., Australia's biggest investment bank, and South Korea's Kookmin Bank surged after Lehman Brothers Holdings Inc. and UBS AG said they are raising $19 billion to replenish capital. Samsung Electronics Co. climbed to the highest in more than eight months.
``We are on the path of restored confidence in the global financial system,'' said Beat Lenherr, Singapore-based chief global strategist at LGT Capital Management, which holds more than $20 billion. ``There's a glimmer of hope that the U.S. economy might recover after all.''
The MSCI Asia Pacific Index added 3.6 percent to 143.63 as of 2:25 p.m. in Tokyo, poised for its biggest gain since Feb. 14. All 10 industry groups on the benchmark rose, with a gauge of financial stocks leading the advance.
Japan's Nikkei 225 Stock Average climbed 3.7 percent to 13,128.25, also the largest increase since Feb. 14, as a gain in the dollar against the yen boosted Japanese equities. Hong Kong's Hang Seng Index surged 4.4 percent, Asia's biggest rally. All of the region's benchmarks advanced.
U.S. stocks rose yesterday, lifting the Standard & Poor's 500 Index by 3.6 percent, its best start to a second quarter in 70 years. U.S.-based Lehman's shares rose for the first time in seven days in New York and Zurich-based UBS sparked a rally among European stocks on expectations that financial firms will recover from $232 billion in mortgage-related losses.
Turning Point?
Macquarie surged 9.9 percent to A$57.02. It has no U.S. subprime mortgage-related investments, spokesman Stephen Yan said yesterday. Kookmin, South Korea's biggest bank, rose 9.9 percent to 63,500 won. HSBC Holdings Plc, Europe's largest bank by value, advanced 2.3 percent to HK$131.90 in Hong Kong.
Mizuho Financial Group Inc., Japan's second-biggest publicly traded bank by market value, jumped 9.5 percent to 402,000 yen, set for its largest advance since Jan. 25. Nomura Holdings Inc., the nation's largest securities firm, climbed 8.3 percent to 1,614 yen.
A gauge of financial stocks on the MSCI Asia Pacific Index climbed 5.8 percent today. It's still the year's second-worst performing industry group on the broader MSCI benchmark as losses tied to U.S. mortgage investments mounted at banks and brokerages worldwide. Finance shares on the MSCI gauge are valued at 13.9 times earnings, 15 percent lower than on Jan. 1.
``We're trying to decide if the turning point has arrived, but there are still a lot of risks out there,'' said Soichiro Kono, a fund manager at Norinchukin Zenkyoren Asset Management Co. in Tokyo, which manages about $10 billion in assets. ``We want to be sure this is a real change.''
Samsung Rallies
Samsung Electronics, Asia's biggest maker of flat-panel screens, chips and mobile phones, added 3.9 percent to 661,000 won, the highest since July 20. The stock also rose after rival Hynix Semiconductor Inc. said falling prices forced it to delay production of flash memory chips.
Sony Corp., the world's No. 2 maker of consumer electronics, climbed 5.4 percent to 4,280 yen, on course for its biggest gain since March 19. The U.S. is the company's largest market. AU Optronics Corp., Taiwan's biggest maker of liquid-crystal displays, increased 4.2 percent to NT$55.10.
Shares in the region also advanced after the U.S. Institute for Supply Management's manufacturing index, released yesterday, rose to 48.6 in March from 48.3 the previous month, compared with economist estimates for a decline. Fifty is a threshold between contraction and expansion.
Dollar Strength
A stronger dollar boosted expectations that Japanese exporters will get more for their overseas sales when converted into the yen. The dollar rose to as much as 102.16 against the yen, the highest since March 12, compared with 99.69 at the close of stock trading in Tokyo yesterday.
Honda Motor Co., Japan's second-largest automaker, rose 7.1 percent to 3,100 yen, poised for its largest advance since Oct. 26. The company generates more than half of its sales from North America. Toyota Motor Corp., its bigger rival, jumped 4 percent to 5,220 yen.
``Expectations of a stronger U.S. dollar also signal a recovery in export-related stocks,'' said LGT Capital's Lenherr.
Fuji Heavy Industries Ltd. jumped 5.4 percent to 433 yen, the most since March 18, after the Nikkei English News said Toyota will raise its stake in the carmaker.
Hyundai Motor Co., South Korea's largest automaker, gained 2.3 percent to 80,300 won. The company raised U.S. sales by 1.9 percent last month, the only Asian brand to post an increase.
China Shipping Container Lines Co., the country's second- largest, surged 10 percent to HK$3.30 in Hong Kong after 2007 profit more than tripled.
Reliance Industries Ltd., India's biggest company by market value, rose 4.1 percent to 2,440 rupees after saying it discovered natural gas close to the country's largest field.