Asian Stocks Advance on Lower Commodities; Honda Motor Rises

Discussion in 'Wall St. News' started by ktgtrader, Aug 10, 2008.

  1. Asian stocks gained, led by banks and manufacturers, after last week's drop in commodity prices eased inflation concerns and boosted the outlook for profits.

    Commonwealth Bank of Australia led financial companies higher on speculation slower inflation will give central banks room to cut borrowing costs. Honda Motor Co., Japan's second- largest automaker, and Sony Corp. surged in Tokyo after crude oil fell to a 14-week low on Aug. 8. Sumitomo Rubber Industries Inc., Japan's third-largest tiremaker, rose the most in more than four years after reiterating its full-year profit forecast.

    The MSCI Asia-Pacific Index added 1.1 percent to 128.54 as of 10:53 a.m. in Tokyo. About three stocks advanced for each that declined, with eight of the index's 10 industry groups gaining. The gauge dropped 2.7 percent last week.

    Japan's Nikkei 225 Stock Average gained....
  2. 1.7 percent to 13,397.05. Benchmark indexes advanced throughout the region, apart from China, where the CSI 300 Index slumped 2.2 percent.

    U.S. stocks gained on Aug. 8, sending the Standard & Poor's 500 Index to the largest weekly gain since April. Home Depot Inc., Macy's Inc. and Gap Inc. climbed as much as 11 percent after the dollar's biggest advance against the euro in almost eight years pushed crude oil lower.

    Crude oil for September delivery dropped 4 percent to $115.20 a barrel in New York at the end of last week, after a plunge in the euro reduced the investment appeal of commodities. That was the lowest since May 2.

    A measure of six metals traded on the London Metal Exchange dropped 3.6 percent on Aug. 8. Zinc lost 3.4 percent, copper 3.5 percent and nickel 3.7 percent.

    Commonwealth Bank, Australia's biggest mortgage lender, gained 3.3 percent to A$44.84. Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, added 2.5 percent to 866 yen.