Asian Stocks Rise to Two-Year High

Asian stocks rose, lifting the regional benchmark index to its highest level since July 2008, as rising commodity prices lifted shares of raw materials. Japanese exporters fell as the yen rose against the dollar.

BHP Billiton Ltd., the world's No. 1 mining company, advanced 0.5 percent in Sydney after copper prices hit a record price of crude oil advanced. CNOOC Ltd., the largest producer of offshore oil, rose 0.8 percent in Hong Kong. Reliance Industries Ltd., which owns the largest refinery complex in the world, rose 1.3 percent in Mumbai. Canon Inc., the world's largest manufacturer of cameras, sank 0.5 percent after the yen's advance against the dollar soured its earnings forecast.

The MSCI Asia Pacific Index rose 0.9 percent to 135.5, the highest level since July 24, 2008, from 19:46 in Tokyo. About three stocks gained for every two that fell. The indicator fell 0.3 percent last week as concern grew that China's central bank may raise interest rates. The bank instead of increased requirements of lenders reserve ratio.

"Fears of a rise in interest rates in China have not come to fruition until now," said Tim Schroeders, who helps manage $ 1 billion in Melbourne in Pengana Capital Ltd. "There is a sense of relief in the markets . This may only be temporary and that the Chinese authorities are increasingly worried about inflationary pressures undermining the economy's growth prospects in the long term. "

Japan's Nikkei 225 Stock Average rose 0.2 percent, while the broader Topix index rose 0.5 percent. Australia S & P / ASX 200 gained 0.2 percent. South Korea's Kospi index rose 0.6 percent, while Hong Kong's Hang Seng rose 0.5 percent.

S & P 500

Sensitivity index of Bombay Stock Exchange, or Sensex, rose 0.6 percent to its highest level in a week as inflation slowed, so the Central Bank room to hold interest rates after the fastest increase of any Asian country this year.

Future over 500 of Standard & Poor's rose 0.2 percent today. In New York, the index rose 0.06 points to 1,240.46, after rising to 0.5 percent, as the Senate began voting on the agreement of President Barack Obama to cut taxes for the Republicans, and investors turned their attention the Federal Reserve meeting in December 1914.

Materials and energy stocks increased more among the 10 industry groups represented in the MSCI Asia Pacific. BHP Billiton, also the largest oil producer in Australia, rose 0.5 percent to A $ 45.65 in Sydney. Rio Tinto Group, the world's third largest mining, rose 0.2 percent to $ 87.90.

OZ Minerals Ltd., one of Australia's copper and gold mining company, rose 5.8 percent to $ 1.73, while in Seoul, Korea Zinc Co., the world's largest producer of refined zinc, advanced 3.9 percent to 304,000 won.

CNOOC, PetroChina

CNOOC rose 0.8 percent to $ 18.48 in Hong Kong in Hong Kong and PetroChina Co., the nation's largest oil company, rose 0.6 percent to HK $ 10. Confidence increased 1.3 percent to 1,055.25 rupees in Mumbai, the largest contributor to earnings today the Madrid stock exchange sensitive index.

Commodities rallied and the dollar weakened yesterday after China refrained from increasing interest rates. Standard & Poor's GSCI products advanced 1.3 percent to 5 pm in New York, copper futures rose to a record $ 9,248 a tonne in London.

Crude oil for January delivery rose 0.9 cent to settle at $ 88.61 a barrel in New York, while London Metal Exchange Price Index of six industrial metals like copper, zinc and Aluminium rose 2.2 percent.

"Markets With Relief

While China's inflation accelerated at its fastest pace in more than two years, the central bank kept its benchmark interest rate unchanged. That helped boost optimism that the world's fastest growing economy will continue to fuel global expansion and demand for raw materials.

"One of the major macro-risks out there was a China policy mistake," said Prasad Patkar, who helps manage about $ 1.8 million at Platypus Asset Management Ltd. in Sydney. "Markets are taking a bit of relief that we will not exaggerate."

Hyundai Heavy Industries Co., the world's largest shipbuilder, rose 8.9 percent to ₩ 417 000 in Seoul after saying that Hapag-Lloyd AG increased its order for 10 ships of six. Deliveries of the ships will take place between July 2012 and November 2013, he said.

Hon Hai Precision Industry Co. rose 2.2 percent to NT $ 115 in Taipei after a research note active Mirae Securities Co. cited speculation that he will form a solar Foxconn unit GCL Poly Energy Holdings Hon Hai Technology Co. Ltd. rose 6.7 percent to NT $ 111.

U.S. retail sales

In Tokyo, NTN Corporation, the world's third largest manufacturer having climbed 5.2 percent to 449 yen after Credit Suisse Group AG raised its investment rating to "overweight" from "neutral."

Li & Fung Ltd., the No. 1 supplier to Wal-Mart Stores Inc., rose 1.6 percent to $ 45.40 in Hong Kong in Hong Kong before a report expected to show sales U.S. retail rose as demand recovers in the world's largest economy. Esprit Holdings Ltd., the largest clothing manufacturer listed in Hong Kong, gained 2 percent to 38.85 Hong Kong dollars.

U.S. retail sales probably rose in November for the fifth consecutive month, economists said before a Commerce Department report later today. The median estimate of 62 economists surveyed by us is for a gain of 0.6 percent after increasing 1.2 percent in October.

The MSCI Asia Pacific index rose by 11 percent through the night in 2010, matching the gain for the S & P 500 and surpassing the 9.1 percent increase in the Stoxx Europe 600 Index. Stocks in Asia benchmark is valued at 14.8 times estimated earnings on average, compared with 14.5 times for the S & P 500 and 12.4 times for the Stoxx 600.

Canon, Honda

Canon dropped 0.5 percent to 4,080 yen in Tokyo after the yen rose to 83.11 against the dollar, compared with 84.15 at the close of stock trading in Tokyo yesterday. Honda Motor Co., with about 80 percent of its sales outside Japan, lost 0.2 percent to 3.170 yen. A potentially stronger yen reduces the value of overseas earnings of Japanese companies.

"The appreciation of the yen weighed on exporters in Japan, said Kenichi Hirano, president and chief strategist at Tachibana Securities Co.

AGL Energy Ltd., the largest distributor of electricity in Australia, fell 4.9 percent to A $ 15.07 in Sydney after failing to buy energy assets the government of New South Wales amid reports that rival Origin Energy Ltd. and a unit of CLP Holdings Ltd. success.