BL: Asian Stocks Advance, Led by Financial Companies; Toyota Gains
By Chen Shiyin and Hanny Wan
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May 2 (Bloomberg) -- Asian stocks rose, sending the region's benchmark index to its steepest gain in almost two weeks, on speculation that turmoil in global credit markets will ease and as sales of cars and chips increased.
Mizuho Financial Group Inc., Japan's third-biggest bank by market value, jumped after U.S. Treasury Secretary Henry Paulson said the credit crisis is probably more than half over. Toyota Motor Corp. climbed after reporting U.S. car sales increased for the first time in five months. Elpida Memory Inc. led an advance by chipmakers after an industry group said semiconductor sales rose in the first quarter.
``Definitely the worst of the credit crisis is behind us,'' said Ivan Leung, Hong Kong-based chief investment strategist at JPMorgan Private Bank, which oversees $400 billion in assets. ``Risk aversion has begun to fade away and we're back to a normal environment.''
The MSCI Asia Pacific Index advanced 1.1 percent to 151.05 as of 10:44 a.m. in Tokyo, the biggest gain since April 21. About six stocks climbed for each that retreated, with a measure of finance stocks advancing the most among the gauge's 10 industry groups.
Japan's Nikkei 225 Stock Average added 1.7 percent to 13,995.42. Sumitomo Realty & Development Co. jumped to a three- month high after the Nikkei newspaper said the property company will report its eighth-straight record profit. Benchmark indexes open for trading elsewhere advanced except Malaysia's.
U.S. stocks rose yesterday to the highest level since January, prompted by a rally in the dollar and better-than- estimated earnings at technology companies.
Paulson's comments were echoed by John Gieve, the Bank of England's deputy governor for financial stability, who said yesterday that appetite for risk assets will recover gradually in the coming months.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Hanny Wan in Hong Kong at hwan3@bloomberg.net
Last Updated: May 1, 2008 21:46 EDT
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