Asian Stocks Climb as Exporters Rise
By Jonathan Burgos and Satoshi Kawano – Aug 23, 2011 7:32 AM GMT+0700
Asian stocks rose for the first time in four days as exporters climbed on speculation that the U.S. Federal Reserve will announce additional measures to shore up the recovery in the world’s largest economy.
Samsung Electronics Co., South Korea’s biggest exporter of consumer electronics, gained 2.5 percent in Seoul. Toyota Motor Corp. (7203), the carmaker that gets 28 percent of sales from North America, rose 1.2 percent in Tokyo. Canon Inc., the world’s largest camera-maker, added 1.3 percent. Newcrest Mining Ltd., Australia’s No. 1 gold producer, climbed 2.3 percent in Sydney after the price of the precious metal extended its rally to a record.
The MSCI Asia Pacific Index added 0.5 percent to 118.90 as 9:28 a.m. in Tokyo, with about three stocks rising for every two that fell. Global equities erased more than $8 trillion in market value in the past four weeks. Investors dumped stocks after reports showed the world’s biggest economy is slowing, sparking speculation that the U.S. Federal Reserve will begin a third-round of asset purchases to shore up the recovery.
“Risk aversion came to a halt in the U.S. and European markets yesterday,” said Ryuta Otsuka, a strategist at Toyo Securities Co. in Tokyo. “Stocks are likely to be bought as valuations and technical indicators indicate they have been oversold.”