Asian stocks climb as U.S. payroll, factory data increase the confidence of recovery

Asian stocks rose, with a regional benchmark index climb to highest level in nearly a month, after U.S. economic reports and speculation that Europe's crisis of debt include increased confidence in a global recovery.

Canon Inc., a Japanese manufacturer of cameras which derives 80 percent of its revenue overseas, rose 2.5 percent in Tokyo after reports showed U.S. payrolls and increased production. James Hardie Industries SE, the largest seller of home siding in the U.S., rose 6.2 percent in Sydney. BHP Billiton Ltd., the world's largest mining company, rose 2.6 percent in oil prices and metal increases. CNOOC Ltd., the largest oil producer offshore China, increased 3.2 percent in Hong Kong.

"The outlook for stocks next year is optimistic macroeconomic outlook is not only to improve the U.S. but also China," said Michiya Tomita, a fund manager in Hong Kong for Mitsubishi UFJ Asset Management Co ., which has about $ 65 billion in assets. "The recent sale on concerns about monetary tightening in China and the escalation of tensions on the Korean peninsula seems excessive."

The MSCI Asia Pacific Index advanced 1.5 percent, the most since November 4 at 131.73 as of 19:26 in Tokyo, with about four for each increase of stocks that fell. The meter is on its way to its first weekly gain after declining for three consecutive weeks on concerns that China will promote the measures against inflation and amid growing tensions between North and South Korea.

Australia S & P / ASX 200 rose 2 percent, even after a government report showed that retail sales fell unexpectedly in October. Japan's Nikkei 225 Stock Average gained 1.8 percent, according to the Ministry of Finance said in Tokyo today that Japanese companies increased spending for the first time in over three years.

U.S. Data

Chinese energy companies helped to lock the drive Seng in Hong Kong and Shanghai, China high-index composite index, while in Taipei, financial services and technology companies gains pace of Taiwan TAIEX Index.

Future over 500 of Standard & Poor's rose 0.4 percent today. The index rose yesterday in New York by 2.2 percent, the most since September 1. A report from ADP Employer Services showed companies added 93,000 workers to payrolls in November, more than the 70,000 expected by economists.

Also in the USA, the Institute for Supply Management said its factory index, a gauge of manufacturing was little changed at 56.6 last month after five months of 56.9 in October. A reading above 50 signals growth.

Debt Crisis

The Stoxx Europe 600 Index rose 2 percent yesterday, the most since Sept. 1 amid speculation the European Central policymakers Bank can strengthen measures to contain the crisis in the region by government debt and after a report yesterday showed that manufacturing activity in China grew faster pace in seven months in November.

"The Chinese market has become more closely linked to the global economy," said Shen Nan, a strategist at Changjiang Securities Co. in Shanghai. "Improving the U.S. data will help drive market performance and investor confidence in general."

Canon added 2.5 percent to 4,050 yen in Tokyo. Sony Corp., the Japanese maker of Bravia TVs that gets 70 percent of its sales abroad, rose 0.8 percent, to 3,040. Honda Motor Co., a Japanese automaker that get over 40 percent of North American sales, gained 1.8 percent to 3.135 yen.

The dollar rose to 84.40 yen in Tokyo last night, near the highest since Sept. 27. A stronger dollar increases the value of U.S. income Japanese companies when converted into local currency.

"Market sentiment"

James Hardie jumped 6.2 percent to $ 5.84 in Sydney and Brambles Ltd., the world's largest supplier of wooden pallets which receives about 45 percent of its sales in the U.S., rose 2, 6 percent to $ 7.02. Leighton Holdings Ltd., the largest construction company in Australia, rose 3.4 percent to $ 32.31 after Theiss unit won a U.S. $ 5.5 billion ($ 5,300,000,000) contract to build and operate a coal mine India's NTPC Ltd.

"We are seeing promising signs of the economy and improved market sentiment worldwide," said Mitsushige Akino, who oversees about $ 450 million in assets in Tokyo at Ichiyoshi Investment Management Co. "Improving confidence should boost cash flow in risky assets. "

The MSCI Asia Pacific index rose 7.8 percent this year through yesterday, compared with gains of 8.2 percent in the S & P 500 and 5.2 percent in the Stoxx 600. Shares in the benchmark for Asia were valued at 14.3 times estimated earnings on average at the end of yesterday, compared with 14.2 times for the S & P 500 and 11.9 times for the Stoxx 600.

Material stocks

A measure tracking material stocks in the Asia-Pacific indicator gained 1.9 percent after the London Metal Exchange Price Index of six industrial metals like copper and aluminum rose 2.6 percent yesterday, the most since November 4.

BHP, also Australia's largest oil company, advanced 2.6 percent to $ 44.33 in Sydney. Rio Tinto Group, the world's third largest mining, rose 2.3 percent to $ 85.01. Woodside Petroleum Ltd., Australia 2 oil and gas producer, gained 1.8 percent to $ 42.05 after crude oil for January delivery rose 3.1 percent to $ 86.75 a barrel in New York yesterday, the highest closing price since Nov. 11. CNOOC gained 3.2 percent to $ 17.54 in Hong Kong in Hong Kong.

Huaneng Power International Inc., the largest electricity producer in China, rose 6.8 percent to 4.42 Hong Kong dollars in Hong Kong after China's state news agency Xinhua said the government ordered a price freeze contracts in 2011 for the coal used in power stations. Datang International Power Generation Co., the second largest producer, gained 6.8 percent to HK $ 2.99.

Power producers

prices for power station coal under long term contracts should be unchanged from 2010 levels, Xinhua reported yesterday, citing Cao Changqing, head of prices in the National Development and Reform. "Any form of price increase is not allowed," Cao was quoted as saying.

In Taipei, Wintek Corp. advanced 1.5 percent to NT $ 55 after the maker of touch panel, said revenue in November rose to NT $ 8,850,000,000 ($ 291 million) from NT $ 8,250,000,000 in October. Taiwan Semiconductor Manufacturing Co., the world's largest maker of chips for the contract, increased by 2.5 percent to NT $ 66.20 after Chairman Morris Chang said he expects that first quarter sales to be stronger than the seasonal average.

First Financial Holding Co. led gains among financial companies on the island, services, from 4.6 percent to NT $ 22.80 after analysts at Credit Suisse Group AG wrote in a report today that Consumers expect banks to increase earnings next year.