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Asian Stocks Rise, Led by Nissan, Taiwan Semiconductor, Benq

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April 22 (Bloomberg) -- Asian stocks rose, paced by Nissan Motor Co. and Taiwan Semiconductor Manufacturing Co., as higher earnings at U.S. companies such as Ford Motor Co. and Qualcomm Inc. boosted optimism about the pace of growth in the world's biggest economy.

The Morgan Stanley Capital International Asia-Pacific Index added 0.4 percent to 95.43 as of 12:47 p.m. in Tokyo. Japan's Nikkei 225 Stock Average climbed 0.5 percent. Benchmark indexes rose in all markets that were open, except for those in Australia, New Zealand, Indonesia, Hong Kong and China.

Earnings in the U.S. ``are suggesting that the economy is on a path to a stronger recovery, which will provide good business opportunities for exporters,'' said Yoji Takeda, who helps manage $250 million as head of Japanese equities at RBC Investment Management (Asia) Ltd. in Hong Kong.

Better-than-expected earnings in New York helped lift U.S. stocks. About 74 percent of the 189 companies in the Standard & Poor's 500 that have reported first-quarter results have exceeded analysts' expectations, according to Thomson Financial.

The MSCI Asia Pacific has dropped 3.5 percent since this year's peak on April 7 amid concern that interest rates in the U.S. would rise sooner than anticipated by some investors.

Chinese companies have been among those that fell the most concern the country would take measures to slow its economic expansion. The International Monetary Fund yesterday called on China to take further steps to prevent its economy from overheating.

Hong Kong's Hang Seng China Enterprises Index, which tracks 37 mainland companies, or H shares, added 0.4 percent, ending a six-day, 13 percent slump. The Hang Seng Index shed 0.2 percent.

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``People were getting carried away,'' said Alex Wong, a director at Rexcapital Asset Management Ltd. ``Long-term economic growth is still intact'' and will support stocks. His Rexcapital Asian Pacific Fund rose 86 percent in the year TO March 31, according to Bloomberg data, more than the 65 percent advance by the MSCI Asia-Pacific Index.

Nissan, Japan's third-largest automaker, climbed 2.6 percent to 1,264 yen. Toyota Motor Corp., which derives 80 percent of its operating profit from North America, added 3 percent to 4,120 yen.

In Hong Kong, Denway Motors Ltd., which makes passenger cars in China with Honda Motor Co., advanced 4.6 percent to HK$7.95.

Ford, the second-largest U.S. carmaker, climbed 10 percent after saying profit excluding some items was 96 cents a share in the first quarter, more than double the 44 cents analysts expected, according to Thomson.

Qualcomm, the world's second-largest maker of microchips that power mobile telephones, said second-quarter profit surged on rising demand for phones using its technology.

Semiconductors

Taiwan Semiconductor Manufacturing, the world's largest supplier of made-to-order chips, added 3.3 percent to NT$63.5. The company supplies Qualcomm with chips.

Benq Corp., Taiwan's largest mobile phone maker, jumped 5 percent to NT$53. Benq offers mobile phones based on Qualcomm's code division multiple access, or CDMA.

United Microelectronics Corp., the second largest made-to- order chips, jumped 4.6 percent to NT$34.10.

SK Networks Co., a South Korean trading company, surged by the 15 percent daily limit imposed by the Korea Stock Exchange for a third day, to 18,600 won. SK Networks said Tuesday that first-quarter profit rose almost fivefold.

LG Electronics Inc. added 3.2 percent 80,300 won after Samsung Securities Co. raised its share-price forecast for the nation's second-largest electronics maker, which yesterday reported first-quarter profit.

Hoya Corp., the world's largest supplier of glass plates used by chipmakers, climbed 6.6 percent to 11,800 yen after the company said fourth-quarter profit surged two-fifths and CLSA Asia-Pacific Markets raised the stock to ``buy.''



To contact the reporter on this story:
Neha Kumar in Tokyo at [e-mail].

To contact the editor for this story:
Teo Chian Wei at [e-mail]
Last Updated: April 21, 2004 23:47 EDT