Asian stocks snap four-day loss

Asian stocks rose, snapping a four-day decline, as speculation the US housing market is bottoming and China may step up economic stimulus tempered concern that the 19th summit on Europe’s debt crisis in three years won’t result in progress toward a resolution. China Overseas Land & Investment Ltd, the biggest Chinese developer by market value listed in Hong Kong, climbed 4.3 per cent. Techtronic Industries Ltd, which makes 72 per cent of its sales in North America, gained 2.6 per cent in Hong Kong. Oracle Corp Japan climbed the most in three months in Tokyo as its profit forecast topped estimates. The MSCI Asia Pacific Index advanced 0.8 per cent to 114.15 at 6.14pm in Tokyo after retreating 3 per cent in the previous four days. The gauge fell 0.5 per cent this year through yesterday amid concern that growth in the US and China is slowing as Europe’s debt crisis spreads.“Markets have already priced in a lot of the bad news,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd, which manages almost $100 billion (Dh367.3 billion). “All you need for a rally in equities is for the backdrop to become less bad. When the housing sector improves it has a strong trickle-down effect to the wider US economy. But there’s still a struggle with what’s going on in Europe.” The decline in MSCI’s Asian gauge this year compares with a gain of 5 per cent by the Standard & Poor’s 500 Index and the Stoxx Europe 600 Index’s drop of 0.8 per cent. The MSCI Asia Pacific Index trades at 11.5 times estimated profit, versus 12.7 times for the S&P 500 and the Stoxx 600’s 10.2 multiple. Hong Kong’s Hang Seng Index rose 1 per cent, while Japan’s Nikkei 225 Stock Average advanced 0.8 per cent. South Korea’s Kospi Index slid less than 0.1 per cent, all but erasing an earlier decline of 1.3 per cent. Australia’s S&P/ASX 200 Index gained 0.7 per cent. US Stocks German Chancellor Angela Merkel and French President Francois Hollande are due to meet Wednesday before the European Union starts a two-day summit in Brussels on Thursday. France and Italy are urging Germany to help end the debt crisis. Futures on the Standard & Poor’s 500 Index declined less than 0.1 per cent, having earlier risen 0.2 per cent. The underlying index gained 0.5 per cent yesterday after data showed house prices decreased at the slowest pace since 2010. The report tempered concern over a drop in the Conference Board’s consumer confidence index to a five-month low. Techtronic Industries climbed 2.6 per cent to HK$9.54 (Dh4.51). Semiconductor Manufacturing International Corp, which makes more than half of its sales in the US, gained 0.4 per cent to 24.8 Hong Kong cents. The MSCI Asia Pacific retreated 12 per cent through yesterday from this year’s high on February 29 and dropped 11 per cent since the end of March, heading for its first quarterly drop since September. China stimulus China may introduce “more proactive” policies to ensure stable growth, according to a commentary in the China Securities Journal by reporter Zhang Zhaohui. The government may expand infrastructure investment, fine-tune monetary policies and reduce taxes, according to the commentary, which was published on the front page of the newspaper. Chinese property developers advanced. China Overseas Land gained 4.3 per cent to HK$17.94, China Resources Land Ltd. advanced 4.9 per cent to HK$15.56 and Guangzhou R&F Properties Ltd rose 1.6 per cent to HK$10.26. China will seek to strengthen ties with Hong Kong by promoting tie-ups between the two financial markets and increasing cooperation in investments overseas and infrastructure, the official Xinhua News Agency said today. The 15th anniversary of Hong Kong’s return to China is on July 1. Oracle Japan advanced 3.6 per cent to 3,165 yen, the most since March, on trading volume that was almost 250 per cent of its five-day average. The company also increased its full-year dividend forecast 4.2 per cent to 75 yen. Boral Slides Chow Tai Fook Jewellery Group Ltd, a Hong Kong-based chain with more revenue than Tiffany & Co, climbed 6.4 per cent to HK$9.81 after posting higher full-year profit. Glencore International Plc fell 3 per cent to HK$36.25. The stock touched the lowest price since the company first sold shares in May last year. Qatar Holding LLC, Xstrata Plc’s second-largest shareholder, asked Glencore to raise its offer for Xstrata. Boral Ltd, the Australian seller of building materials, slumped 1.9 per cent to A$3.13 (Dh11.53), a seventh straight day of declines to its lowest since March 2009, after cutting its profit forecast. from gulfnews.com