Asian stocks rise on signs of recovery

Asian stocks rise on signs of recovery
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First Published: Mon, Aug 24 2009. 09 13 PM IST
Updated: Mon, Aug 24 2009. 09 13 PM IST
Sydney/Tokyo: Asian stocks rose on Monday, with the MSCI Asia Pacific Index advancing the most in three months after sales of existing homes in the US surged by a record and China Construction Bank Corp. reported higher-than-estimated profit.
The MSCI Asia Pacific Index rose 2.5% to 113.40 as of 7.20pm in Tokyo, the steepest increase since 19 May. Almost nine times as many stocks gained as retreated, and all 10 industry groups climbed, led by commodities producers.
Japan’s Nikkei 225 Stock Average added 3.4% to 10,581.05 points, with only six stocks declining. All Asian benchmark gauges advanced, led by a 5.1% gain in the Philippines.
Purchases of existing US homes jumped 7.2% in July, the most since the tallies began in 1999, according to the National Association of Realtors.
China Construction Bank Corp., the nation’s second largest, rose 2.6% to HK$5.99 (around Rs38) in Hong Kong after first-half profit beat analysts’ estimates on higher fee income and lower operating costs and bad-loan provisions.
Shares on the MSCI Asia Pacific Index traded at 23.7 times their estimated net income on Friday, the lowest level in a month. The gauge dropped 3.2% last week, the most since the five days ended 19 June, on concern China will curb bank lending, hampering growth.
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First Published: Mon, Aug 24 2009. 09 13 PM IST
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