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Asian Stocks Rise on Woolworths, ANZ Earnings; Unicom Climbs

Feb. 26 (Bloomberg) — Asian stocks rose, driving the MSCI Asia Pacific Index to its biggest weekly gain in seven, as Woolworths Ltd. and Australia & New Zealand Banking Group Ltd. reported increased earnings and oil prices climbed.

Woolworths Ltd., Australia’s biggest retailer, climbed 5.5 percent as it announced a share buyback. ANZ, the No. 3 bank in Australia by market value, rose 4 percent after saying profit rose. PetroChina Co., China’s largest oil producer, climbed 1.6 percent in Hong Kong. China Unicom (Hong Kong) Ltd. surged 7.6 percent after Deutsche Bank AG recommended buying the stock.

The MSCI Asia Pacific Index rose 0.6 percent to 117.73 at 7:40 p.m. in Tokyo. The measure climbed 2.1 percent this week, the most since the period ended Jan. 8. The gauge has slumped 7.1 percent from a 17-month high on Jan. 15 amid concerns governments will start withdrawing stimulus and Greece, Spain and Portugal will struggle to curb deficits.

“All the signs are that the global recovery is on track, but the market is also focusing on the potential for bad news,” said Matt Riordan, who helps manage $4.9 billion at Paradice Investment Management in Sydney.

Japan’s Nikkei 225 Stock Average gained 0.2 percent. The country’s factory output rose 2.5 percent in January from a month earlier, the 11th straight gain, government figures today showed. South Korea’s Kospi Index gained 0.5 percent as a central bank index of manufacturers’ confidence rose to the highest in more than seven years.

Greek Debt

India’s Sensitive Index rose 1 percent as the country’s finance minister pledged to trim the fiscal deficit from a 16- year high, while boosting funds for infrastructure and support for the banking industry. Hong Kong’s Hang Seng Index rose 1.1 percent. Australia’s S&P/ASX 200 Index climbed 1 percent.

Futures on the U.S. S&P 500 Index advanced 0.3 percent. The gauge fell 0.2 percent in New York yesterday as Moody’s Investors Service said it may downgrade Greek debt and reports on jobs and manufacturing orders trailed forecasts.

“The figures from the U.S. nowadays don’t give us a clear sense of direction on where the economy is headed,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “It’s hard for investors to take risks without any positive surprises.”

The MSCI Asia Pacific Index rose 0.8 percent in February, its third monthly advance in four. The gauge’s fall from its January peak dragged the average valuation of companies in the gauge to 18.1 times estimated profit, from 21 times on Jan. 15. Stocks on the S&P 500 Index trade at 14.1 times earnings, while those on the Dow Jones Stoxx 600 in Europe are at 12.2 times.

Retail Profits

Woolworths gained 5.5 percent to A$26.84. The retailer said it will buy back A$400 million ($355 million) of stock after first-half earnings rose 11 percent on increasing profitability at its supermarkets. Harvey Norman Holdings Ltd., Australia’s largest furniture and electronics retailer, added 1.6 percent to A$3.83 after first-half earnings jumped 60 percent.

In Tokyo, Aeon Co. jumped 2.9 percent to 914 yen after Goldman Sachs Group Inc. increased its rating on the supermarket operator to “buy” from “neutral.”

“Earnings reports have been pretty strong,” said Winson Fong, who helps manage about $2.5 billion at SG Asset Management H.K. Ltd. in Hong Kong. “People are also becoming less panicked about China’s tightening and Europe’s deficit crisis.”

ANZ Banking increased 4 percent to A$23.14. Earnings in the first four months of its fiscal year climbed, the Melbourne- based bank said, joining Westpac Banking Corp. and Commonwealth Bank of Australia in a profit rebound as the economy recovers.

Commonwealth Bank increased 1.4 percent to A$53.92. In Tokyo, Aozora Bank Ltd. rose 2.7 percent to 114 yen.

Oil, Gold

A gauge of energy companies on the MSCI Asia Pacific Index gained 1.6 percent, the most of 10 industry groups, as oil futures in New York advanced as much as 0.6 percent in after- hours trading.

PetroChina, China’s largest oil producer, climbed 1.6 percent to HK$8.67 in Hong Kong, while Cnooc Ltd., the country’s largest offshore oil producer, rose 1.2 percent to HK$12.24.

Gold producers advanced after bullion rose 1 percent in New York yesterday, the first gain this week. Newcrest Mining Ltd. gained 1.9 percent to A$31.34. Lihir Gold Ltd., the second- largest gold mining company on the Australian stock exchange, climbed 2.7 percent to A$2.65.

In Hong Kong, China Unicom, the country’s second-biggest mobile-phone company, rose 7.6 percent to HK$9.31, while China Telecom Corp. added 3.3 percent to HK$3.41. The two stocks were upgraded to “buy” at Deutsche Bank, which cited a “benign competitive” environment.

Also in Hong Kong, Tencent Holdings Ltd., China’s biggest Internet company by market value, advanced 1.9 percent to HK$152.20 after rival NetEase.com Inc. reported better-than- estimated fourth-quarter profit.

Hynix, QBE Slump

Hynix Semiconductor Inc. was the sixth-biggest drag on the MSCI Asia Pacific Index today, sinking 3.2 percent to 21,000 won in Seoul. Creditors seeking to recoup the $4.6 billion spent bailing out the chipmaker will seek to sell as much as 13 percent of Hynix this year, main lender Korea Exchange Bank said in a statement.

QBE Insurance Group Ltd., Australia’s biggest insurer by market value, had the biggest decline on the MSCI gauge. The stock slumped 7 percent to A$21.40 in Sydney as profit in 2009 fell short of analysts’ expectations. Air New Zealand Ltd. fell 1.5 percent to NZ$1.29 in Wellington after the nation’s biggest airline said sales fell 15 percent in the first half…read more at the Bloomberg