Asian Markets Ignore Our Cue and Advance Higher for Opening Trade

Financial and commodity stocks lead the way

March 17 (Bloomberg) — Asian stocks gained for a third day, led by financial and commodity companies, on optimism bank earnings will recover and metal prices jumped.

Mizuho Financial Group Inc., Japan’s second-largest publicly traded bank, jumped 3.7 percent on speculation the Bank of Japan may act to shore up bank capital and after London-based Barclays Plc said it had a “strong start” to 2009. BHP Billiton Ltd., the world’s biggest mining company, rose 2.2 percent in Sydney as copper climbed to a four-month high yesterday. Woodside Petroleum Ltd., Australia’s second-largest oil producer, gained 2.3 percent on higher oil prices.

“This upward movement in the market could continue until the early part of April,” said Fujio Ando, who helps oversee the equivalent of $1 billion as managing director at Tokyo-based Chibagin Asset Management Co. “Expectations are heightening that we’ll see some additional policies designed to aid the economy and boost stock prices.”

The MSCI Asia Pacific Index rose 0.9 percent to 76.93 as of 11:08 a.m. in Tokyo, with about five stocks gaining for every three that declined. The measure has slumped 42 percent in the past year as the deepening global slowdown hurt company profits in the region.

Japan’s Nikkei 225 Stock Average gained 1.5 percent to 7,818.82, while South Korea’s Kospi Index rose 1.3 percent. Australia’s S&P/ASX 200 Index climbed 1.8 percent. All markets open for trading gained except New Zealand, Singapore, Taiwan and the Philippines.

Futures on the Standard & Poor’s 500 Index were little changed. The gauge lost 0.4 percent yesterday as concern over rising credit-card defaults snuffed out a rally in financial companies. American Express Co., the largest credit-card company by purchases, reported higher delinquency rates for February.

‘Strong Start’

The MSCI Asia Pacific Index has declined 14 percent this year, adding to a record 43 percent slide in 2008. Cuts to analysts’ earnings forecasts has left companies on the benchmark gauge trading at an average 23 times estimated profits, up from 14 times at the end of last year.

Mizuho gained 3.7 percent to 196 yen in Tokyo. Mitsubishi UFJ Financial Group Ltd., Japan’s biggest bank, rose 3.4 percent to 456 yen. Barclays, the U.K.’s third-biggest bank, said yesterday it had a “strong start” to 2009, echoing comments from banks including as Citigroup Inc. and JPMorgan Chase & Co.

The Bank of Japan starts a two-day policy meeting today. The Nikkei newspaper said yesterday the central bank is considering buying subordinated loans and subordinated bonds from lenders as a step to help bolster their capital and offset losses caused by writedowns on stock investments.

BHP rose 2.2 percent to A$31.68. Rio Tinto Ltd., the world’s No. 3 mining company, gained 1.2 percent to A$51.38. Copper futures in New York surged 5 percent yesterday to $1.747 a pound, having earlier risen to the highest since Nov. 11. An index of six metals on the London Metals Exchange rose 3 percent.

Woodside Petroleum rose 2.3 percent to A$36.88 in Sydney. Inpex Corp., Japan’s largest oil explorer, gained 3.1 percent to 664,000 in Tokyo. Crude oil in New York rose 2.4 percent to $47.35 yesterday, the highest settlement since Jan. 6.