Asia Stocks Rise as Bank of Japan Boosts Nikkei 225 Index

Asia Stocks Rise as Bank of Japan Boosts Nikkei 225 Index
By Adam Haigh - Apr 9, 2013 8:34 AM GMT+0800

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Asian stocks rose, with Japan’s Nikkei 225 Stock Average extending a 4 1/2 year, amid speculation Bank of Japan (8301) measures to fight deflation will boost corporate profits.
Toyota Motor Corp., the world’s largest carmaker, advanced 1.1 percent in Tokyo as the yen fell to the weakest level since May 2009. BHP Billiton Ltd. (BHP), the biggest mining company, gained for a third day in Sydney as metals prices rose. Sundance Resources Ltd. (SDL) tumbled 52 percent after terminating an agreement with Sichuan Hanlong Group following the Chinese company’s failure to secure funding for its A$1.14 billion ($1.18 billion) bid to buy the rest of the Australian iron-ore miner.

The MSCI Asia Pacific Index (MXAP) gained 0.3 percent to 134.45 as of 9:29 a.m. in Tokyo, rising for a second day. The regional equities benchmark advanced the last five months as Japanese shares increased on speculation the nation will deploy more stimulus and amid signs the U.S. economy is recovering. Markets in China and Hong Kong are yet to open.
“Keep piling in” to Japanese shares, said Timothy Condon, head of Asia research at ING Investment Management, who helps oversee $241 billion in Singapore, speaking in a Bloomberg TV interview. “You’ll earn handsome returns from investing in the Japanese stock market. This is one of the best examples of monetary policy out of the Bank of Japan and is certainly unprecedented in the 20 years I’ve been watching. It’s going to work.”
Japan’s Nikkei 225 Stock Average (NKY) added 1 percent, taking its gain since the close on April 2, before the BOJ started a two-day meeting that resulted in additional stimulus, to 11 percent. Australia’s S&P/ASX 200 Index gained 0.7 percent. South Korea’s Kospi index added 0.5 percent and New Zealand’s NZX 50 Index increased 0.3 percent.
Futures on the Standard & Poor’s 500 Index rose 0.1 percent. The measure gained 0.6 percent yesterday as investors speculated first-quarter earnings for U.S. companies would help equities rebound from their biggest weekly decline of the year.
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