01 Jul 2009
July 1 (Bloomberg) -- Most Asian stocks gained as manufacturing expanded for a fourth month in China, lifting infrastructure stocks. Share sales sent companies in need of capital lower.
China Railway Erju Co., a unit of the nation's biggest construction company, jumped 4.6 percent after the Purchasing Managers' Index rose to 53.2 in June. Komatsu Ltd., the world's second-largest maker of construction machinery, added 2.8 percent as Mizuho Financial Group Inc. rated the stock "strong buy," citing demand in China. Aluminum Corp. of China Ltd. lost 1.2 percent after saying it will raise $1.46 billion selling shares, while Orix Corp., Japan's No. 1 non-bank lender, fell 5.7 percent after the Nikkei newspaper said it will sell stock.
The MSCI Asia Pacific Index was little changed at 103.19 as of 12:43 p.m. in Tokyo. Three shares advanced for every two that fell on the benchmark. The measure rallied 15 percent in the first half of 2009, the best start to a year since 1999 and outpacing gains by gauges in Europe and the United States.
"China's economy is on its feet again, thanks to government stimulus measures," said Yoshinori Nagano, a senior strategist at Tokyo-based Daiwa Asset Management, which oversees the equivalent of $90 billion. "I'm expecting to see more companies sell shares."
Japan's Nikkei 225 Stock Average inched up 0.5 percent to 10,008.66. The Tankan index of business confidence came in below economist forecasts, yet still showed the first improvement in sentiment in more than two years. The gauge of large manufacturers rose to minus 48 in June from minus 58 in March, the Bank of Japan said today. Economists surveyed by Bloomberg News had predicted minus 43.
Australia's S&P/ASX 200 Index slumped 1.9 percent, the region's largest drop. The nation's manufacturing industry contracted for a 13th month in June, a survey showed. Home- building permits fell 12.5 percent from April, compared with forecasts for a 3 percent increase. Hong Kong's market is shut today for a public holiday.
