11 Apr 2009
April 11 (Bloomberg) -- Asian stocks climbed for a fifth week, the longest streak of gains since February 2007, as Japan proposed a $154 billion stimulus package and investors speculated the global recession is abating.Orix Corp., Japan's largest non-bank financial company, rallied 26 percent as Japan's Prime Minister Taro Aso said he envisioned a stimulus package that would create 2 million jobs. AU Optronics Corp., the world's third-biggest maker of liquid- crystal displays, climbed 12 percent as panel shipments jumped. Mazda Motor Corp., Japan's second-largest car exporter, surged 33 percent, aided by the yen's fall to a five-month low.
The MSCI Asia Pacific Index climbed 1.5 percent this week to 87.97, the highest since Jan 12. Asian markets joined global stocks in a fifth weekly advance, lifting the MSCI benchmark from a six-year low.
"Spring has finally come to the market," said Yoshihiro Ito, senior strategist at Okasan Asset Management Co., which oversees about $9.3 billion. "We've seen indicators that suggest the economy is bottoming out. People's view on the economic outlook is gradually turning optimistic and this is leading to the rebound in the equity market."
Japan's Nikkei 225 Stock Average gained 2.5 percent. South Korea's Kospi index added 4.1 percent as the strengthening won eased the foreign currency debt burden of lenders, including Woori Finance Holdings Co. India's Sensex added 4.4 percent amid easing inflation.
Earnings Estimates
MSCI's Asian index plunged by a record 43 percent last year as the credit crunch tipped the world's largest economies into recession, forcing companies to cut jobs amid slumping profits. Earnings estimates for companies included in the gauge started to rise in March after falling for a year, according to data compiled by Bloomberg.
Orix jumped 26 percent to 4,880 yen. Hitachi Ltd., Japan's largest electronics maker, jumped 10 percent to 333 yen. Pioneer Corp., the audio-visual equipment maker attempting to restructure to restore profitability, rocketed 77 percent to 293 yen after a joint venture with Sharp Corp. on optical drives.
Japan's Aso yesterday unveiled a record 15.4 trillion yen ($150 billion) stimulus package that includes provisions to provide a safety net for employees getting sacked, subsidies for new car purchases and spending on the environment.
‘Positive Measures'
"The stimulus package is badly needed," said John Richards, head debt-market strategist for the Asia-Pacific region at Royal Bank of Scotland Plc in Tokyo. "These are very positive measures."
Mazda rose 33 percent to 256 yen. Isuzu Motors Ltd., Japan's third-biggest maker of commercial vehicles, gained 21 percent to 155 yen as Morgan Stanley lifted the automaker to "overweight," citing better-than-expected sales in some markets.
The yen fell to as low as 101.44 versus the dollar, a level not seen since October. A weaker yen boosts the value of overseas sales when converted into local currency.
AU Optronics gained 12 percent to NT$32.40. The company increased panel shipments by 49 percent in March from the previous month, it said this week. LG Display Co. added 5.9 percent to 32,100 won in Seoul. Nippon Electric Glass Co., the world's third-biggest maker of glass for flat-panel televisions, climbed 7.6 percent to 820 yen.
Flat Panel Prices
The flat-panel display industry may have entered a strong recovery as prices are climbing in April, the Commercial Times said yesterday, citing industry researcher DisplaySearch.
Woori Finance, South Korea's largest financial company, gained 24 percent to 9,960 won. Industrial Bank of Korea rose 13 percent to 8,720 won. The won climbed to the highest in three months against the dollar this week, boosting the ability of banks to meet debt payments denominated in dollars.
Sumitomo Mitsui Financial Group Inc., Japan's third-largest listed bank, plunged 15 percent to 3,110 yen after posting a 390 billion yen loss for the latest financial year. The bank said it was preparing to sell as much as 800 billion yen of common shares to shore up capital.
