By Agency Reporter

Monday, 8 Nov 2010

Asian stocks rose last week, driving up the benchmark index by the most this year, on optimism that the United States Federal Reserve would succeed in stoking growth in the world‘s biggest economy.

Bloomberg News reported from Asia on Saturday, that Mitsubishi Corporation, Japan‘s biggest commodities trader, advanced by 7.8 per cent in Tokyo as oil and metal prices climbed. CNOOC Limited, China‘s biggest offshore oil explorer, jumped by 10 per cent in Hong Kong.

BHP Billiton Limited and Rio Tinto Group, climbed by more than five per cent in Sydney. Nissan Motor Company, gained 7.6 per cent after reporting higher-than-expected earnings and raising its profit forecast.

”We‘re seeing follow-through strength in risky assets, suggesting that not all of the United States quantitative-easing news was in the price,” Mr. Prasad Patkar, who helps manage about $1.8bn at Platypus Asset Management Limited in Sydney, said.

”The market had been expecting a second round of easing, but it appears the rumour was not bought to the extent feared. That is why we are not seeing any selling.”

The MSCI Asia Pacific Index rose by 4.2 per cent this week to 134.82, its steepest increase since the five days ended on December 4.

The gauge has risen by about 12 per cent in 2010 on speculation that profits will weather Europe‘s debt crisis, China‘s steps to curb property price gains and concern about the pace of US economic growth. Shares in the gauge trade at an average of about 15 times estimated earnings, the highest level since June.

The MSCI index had its biggest two-day gain since May and equity markets rose worldwide after the Federal Reserve said on November 3, that it would purchase as much as $600bn of assets through June, expanding record measures to support the United States economy.

Japan‘s Nikkei 225 Stock Average climbed by 4.6 per cent in the four days it was open this week. Hong Kong‘s Hang Seng Index surged by 7.7 per cent, South Korea‘s Kospi Index gained three per cent. China‘s Shanghai Composite Index surged by 5.1 per cent. Australia‘s S&P/ASX 200 Index rose by three per cent.

Mitsubishi, which gets more than 40 per cent of its sales from metals and energy, gained 7.8 per cent to 2,086 yen this week. In Hong Kong, Cnooc jumped by 10 per cent to $17.68 and Jiangxi Copper Company, China‘s largest producer of the metal, advanced by 16 per cent to $25.10.

Source: Punch