Asian Markets Advanced Led by Hong Kong (Bloomberg) (12-02-2008)

Feb. 12 (Bloomberg) -- After suffering losses for three sessions, most Asian stocks advanced, as investors speculate that gains in metals prices will help commodities producers withstand global growth.

The MSCI Asia Pacific Index added 0.4 percent to 139.76 at 5:19 p.m. in Tokyo, reversing an earlier drop of 0.4 percent and snapping a two-day, 2 percent decline. All Asian benchmarks gained apart from Taiwan and Indonesia.

The Topix index fell 0.1 percent in Japan, where markets were closed yesterday. Hong Kong's Hang Seng Index added 1.4 percent, reversing a 9.7 percent tumble. Mainland China's stock markets were shut for the final day of the weeklong Lunar New Year holidays.

Insurers in Japan were badly hit with Millea, the No. 1 in the country dropping 5.7 percent to 3,810 yen, its lowest close since Jan. 28, while Mitsui Sumitomo Insurance Co., the No. 2, lost 6.4 percent to 1,031 yen.

BHP, the world's largest mining company, rose 3 percent to A$36.91. Mitsui & Co., Japan's second-biggest trading company, jumped 4.6 percent to 2,170 yen. PetroChina Co., the nation's largest oil company, added 2.8 percent to HK$10.94 in Hong Kong.

Copper futures rose in New York to as much as $3.599 a pound, the highest for a most-active contract since Oct. 22. Crude oil for March delivery climbed 2 percent in New York yesterday to $93.59 a barrel, a one-month high. Futures jumped 5.3 percent in the previous two sessions.

Rio Tinto Group, the third-biggest mining company, climbed 5 percent to A$127.80, snapping a five-day, 5 percent drop. The company may say tomorrow second-half profit surged 9.4 percent, according to the median analyst estimate in a Bloomberg survey.

Inpex jumped 8.7 percent to 1.07 million yen, its biggest advance since Sept. 19. The Tokyo-based company forecast net income of 153 billion yen ($1.4 billion) for the year ending March 31, compared with a November forecast of 127 billion yen. UBS AG raised its rating on the stock to ``buy'' from ``neutral,'' saying the company's forecast is still conservative.

Esprit Holdings Ltd., a Hong Kong-based apparel retailer, climbed 4.3 percent to HK$97.55. Li & Fung Ltd., which supplies Wal-Mart Stores Inc., surged 6.5 percent to HK$28, its steepest advance in almost three weeks.

Also in Hong Kong, China Netcom Group Corp. rose 3 percent to HK$22.55, halting a three-day, 14 percent plunge. Telefonica SA, Europe's second-largest phone company, plans to increase its stake in China's No. 2 fixed-line operator to 10 percent in the next few months, the Standard newspaper reported today.

Companies that reported higher profit gained.

Fujifilm Holdings Corp. jumped 3.7 percent to 3,950 yen after the world's biggest maker of liquid-crystal display film posted a 59 percent increase in third-quarter net income, because of the absence of a one-time charge compared with a year earlier.

Source: Bloomberg