Asian stocks rose, rebounding from earlier declines, as better-than-expected earnings from Honda Motor Co. and Nissan Motor Co. bolstered investor confidence in the prospects for a global economic recovery.
The Nikkei 225 index in Tokyo gained 51.97 points Thursday, or 0.5%, to 10,165.21, its highest level since Oct. 6 of last year, as the nation’s manufacturers boosted production for a fourth month. Sony Corp., which reported a smaller-than-forecast quarterly loss after the close of trading, jumped 6.8%.
In Hong Kong, the Hang Seng index regained 98.58 points, or 0.5%, to 20,234.08.
Honda, Japan’s second-largest carmaker, jumped 8.7%. The automaker raised its operating profit forecast yesterday after Tokyo markets closed to 70 billion yen for the year to March 2010, citing cost cuts. Nomura raised its rating on the carmaker to "buy" from "neutral."
Nissan soared 10%. Japan’s number-three automaker posted a first-quarter net loss that was less than a third of what analysts had projected. Mazda Motor Co. gained 8.6%.
Mitsubishi Electric Co., which makes everything from air conditioners to factory robots, surged 15% in Tokyo after saying the worst is over for the company. Commonwealth Bank of Australia jumped 4.3% in Sydney after Citigroup Inc. upgraded the nation’s banks.
A third of the 36 companies in the Nikkei 225 that published results through yesterday beat analyst estimates, compared with 17% with worse-than-expected earnings, according to data compiled by Bloomberg.
Commonwealth Bank, Australia’s largest by market value, jumped 4.3%, and National Australia Bank Ltd. rose 3.8%. Both were raised to "buy" from "hold" at Citigroup, which identified 10 reasons for optimism on Australian lenders, including narrowing credit spreads and the "elimination" of solvency risk.
Cnooc Ltd., China’s biggest offshore oil explorer, sank 1.5% in Hong Kong. BHP Billiton Ltd. lost 0.8% in Sydney. Sumitomo Metal Mining Co., Japan’s biggest nickel and gold producer, fell 3.9% after reporting a 78% drop in first-quarter profit and as nickel fell the most in more than two weeks.
NEC Electronics declined 5.3%, the sharpest decline since July 13. The company’s first-quarter loss widened amid a slump in demand for devices used in automobiles, flat-panel televisions and handsets.
Techtronic Industries Co., which makes Hoover vacuum cleaners and Ryobi power tools, sank 5.9% in Hong Kong after saying it will raise funds by selling new shares.
Elsewhere:
Shanghai’s 300 Composite Index prospered 76.31 points, or 2.1%, to 3,634.82, following its biggest drop in eight months Wednesday.
Singapore’s Straits Times Index was 32.13 points, or 1.2%, to the good, to end the day at 2,636.19.
South Korea’s Kospi index regained 10.42 points, or 0.7%, to 1,534.74
Taiwan’s Taiex bucked the trend, declining 56.52 points, or 0.8%, to 7,027.11
New Zealand’s NZX 50 Index gained back 3.53 points, or 0.1%, to 2,994.00
Australia’s S&P/ASX 200 added 47.60 points, or 1.2%, to 4,190.40.
