Asia Stocks Rise, Led by Utilities, as Hong Kong Rebounds – Bloomberg

Asian stocks rose, with the regional
benchmark index poised to halt a two-day loss, as utilities
advanced and Hong Kong stocks rebounded from yesterday’s slump.

Gail India Ltd., a distributor of natural gas, jumped 4.4
percent in Mumbai to lead power companies higher. Coolpad Group
Ltd. jumped 13 percent in Hong Kong after the smartphone maker
said profit increased. Inpex Corp., a Japanese oil explorer,
tumbled 3.3 percent as crude slid after Iraqi army victories
damped concern the nation’s supplies will be disrupted.

The MSCI Asia Pacific Index (MXAP) gained 0.2 percent to 144.91 as
of 5:14 p.m. in Tokyo after falling as much as 0.3 percent. All
but two of the 10 industry groups rose on the measure.

“After a lackluster start, most of the major markets in
the Asian region have turned positive despite a lack of leads to
drive sentiment,” Stan Shamu, a Melbourne-based market
strategist at IG Ltd., wrote in a note. “Markets in China have
somewhat found their footing after a dismal session yesterday.”

Hong Kong’s Hang Seng Index rose 0.3 percent after dropping
1.7 percent yesterday, the biggest decline in three months. The
Hang Seng China Enterprises Index and the Shanghai Composite
Index both added 0.5 percent. Taiwan’s Taiex index gained 0.2
percent.

Japan’s Topix index added 0.1 percent after falling as much
as 0.7 percent. South Korea’s Kospi index climbed 1 percent.
Australia’s S&P/ASX 200 Index fell 0.4 percent, while New
Zealand’s NZX 50 Index lost 0.1 percent. Singapore’s Straits
Times Index rose 0.2 percent, and India’s S&P BSE Sensex jumped
1.4 percent.

U.S. Recovery

Futures on the Standard & Poor’s 500 Index were little
changed today. The U.S. equity gauge slid less than 0.1 percent
yesterday as General Electric Co. led industrial shares lower,
to offset gains among energy producers.

Data yesterday showed U.S. sales of existing homes climbed
4.9 percent to a 4.89 million annualized rate last month, the
most since October. A separate report from Markit Economics
showed a measure of U.S. manufacturing growth rose to 57.5 in
June from 56.4 in May.

A preliminary China manufacturing Purchasing Managers
Index from HSBC Holdings Plc and Markit Economics rose to 50.8
for June yesterday, exceeding the 49.7 median estimate of
analysts surveyed by Bloomberg News. A number above 50 indicates
expansion.

China Outlook

“Things in China are starting to look brighter,
underlining support for share markets,” said Shane Oliver,
Sydney-based head of investment strategy at AMP Capital
Investors Ltd., which has $131 billion under management.

A subindex of utilities on the regional benchmark rose,
with Gail India jumping 4.4 percent to 458.20 rupees. Korea
Electric Power Corp. advanced 3.6 percent to 39,900 won in
Seoul. Power Assets Holdings Ltd. added 1.9 percent to HK$66.50
to lead gains on the Hang Seng Index.

Coolpad surged 13 percent to HK$2.04. The company cited
“significant” growth in smartphone sales for a rise in year-to-date profit, according to a filing with Hong Kong’s bourse.

Energy shares fell. Brent crude dropped for a third day
amid optimism the flow of Iraqi oil won’t be slowed by violence
in OPEC’s second-largest producer. Inpex declined 3.3 percent to
1,570 yen. Cnooc Ltd., China’s largest offshore energy explorer,
slid 1.5 percent to HK$13.56.

Among other stocks that fell, SPT Energy Group Inc. plunged
6.1 percent to HK$4.35 after a block trade of the stock crossed
at a 6.9 percent discount to its last close.

The Asia-Pacific gauge traded at 13.3 times estimated
earnings as of yesterday, the most expensive level since
December, according to weekly data compiled by Bloomberg. That
compared with 16.6 for the S&P 500 and 15.5 for the Stoxx Europe
600 Index, the data show.

To contact the reporter on this story:
Yoshiaki Nohara in Tokyo at
ynohara1@bloomberg.net

To contact the editors responsible for this story:
Sarah McDonald at
smcdonald23@bloomberg.net
Tom Redmond, Jim Powell

Asia Stocks Rise, Led by Utilities, as Hong Kong Rebounds – Bloomberg}

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