Asian Stocks Open Higher

Commodities lead the way

By Jonathan Burgos and Masaki Kondo

June 25 (Bloomberg) — Asian stocks rose, led by mining and technology companies, after metals prices gained and orders for U.S. durable goods unexpectedly increased.

Komatsu Ltd., an earthmoving equipment maker that gets a quarter of its sales from the Americas, added 3.5 percent in Tokyo. Rio Tinto Ltd., the world’s third-biggest mining company, climbed 2.7 percent in Sydney. Mitsubishi Electric Corp. surged 7.2 percent after the Nikkei newspaper reported the company is planning to set up solar power manufacturing facilities in the U.S. and Europe.

“Undoubtedly, the economy has hit bottom and is rebounding,” said Mitsushige Akino, who oversees about $522 million at Ichiyoshi Investment Management Co. in Tokyo. “Some investors are staying on the sideline to see how this slow recovery will play out.”

The MSCI Asia Pacific Index rose 0.8 percent to 101.60 at 11:12 a.m. in Tokyo. Optimism the global economy is recovering has boosted the gauge by 44 percent from a more than five-year low on March 9. The Organization for Economic Cooperation and Development lifted its forecast for growth in the economies of its 30 member nations yesterday for the first time in two years.

Japan’s Nikkei 225 Stock Average advanced 1.6 percent to 9,741.87, while South Korea’s Kospi Index gained 1.6 percent. Australia’s S&P/ASX 200 Index added 0.7 percent as the International Monetary Fund raised its 2009 and 2010 growth forecasts for the country’s economy.

Futures on the Standard & Poor’s 500 Index added 0.1 percent. The gauge rose 0.7 percent in New York yesterday. U.S. orders for items meant to last several years increased 1.8 percent in May, a Commerce Department report showed. Economists had estimated a 0.9 percent drop.

Metals Prices

Komatsu, which gets more than 80 percent of revenues supplying construction and mining equipment, added 3.5 percent to 1,480 yen. Honda Motor Co., which derives 45 percent of its sales in North America, gained 2.1 percent to 2,610 yen.

The durable goods report boosted speculation demand for resources will increase. A gauge of six metals in London climbed 4.8 percent yesterday, the most since March 19, while copper jumped 3.1 percent in New York.

Rio Tinto climbed 2.7 percent to A$50.94. BHP Billiton Ltd., the world’s biggest mining company, gained 1.3 percent to A$34.15. Mitsubishi Corp., which gets more than half of its profits from commodities, advanced 2.6 percent to 1,785 yen.

Mitsubishi Electric surged 7.2 percent to 610 yen. The company plans to build plants for assembling solar power generation systems in Europe and the U.S. next fiscal year, Nikkei newspaper reported, without citing anyone.

Australian Economy

Samsung Electronics Co., the world’s biggest maker of liquid-crystal display televisions, added 1 percent to 586,000 won after a U.S. trade agency said some of the company’s products had been infringed by Sharp Corp. Some Sharp LCD televisions and computer monitors should be banned from the U.S., the country’s International Trade Commission said yesterday.

Harvey Norman Holdings Ltd., Australia’s No. 1 electronics retailer, climbed 4.1 percent to A$3.03. David Jones Ltd., the country’s second-largest department store chain, gained 2.5 percent to A$4.10.

The IMF said Australia’s economy will contract 0.5 percent this year, compared with a 1.4 percent decline estimated in April. The economy will grow 1.5 percent next year, the IMF said, after previously forecasting a 0.6 percent increase.