Asian Stocks Rise Third Day Before China Trade Data

Asian Stocks Rise Third Day Before China Trade Data
By Adam Haigh - Apr 10, 2013 8:55 AM GMT+0800

Asian stocks rose, pushing the benchmark regional equities gauge higher for a third day, as commodity producers advanced before a China trade report that may show the world’s second-largest economy is strengthening.
BHP Billiton Ltd. (BHP), the world’s largest miner, rose 2.6 percent to advance for a fourth day in Sydney, its longest winning streak in more than two months. Billabong International Ltd. (BBG) slumped 27 percent after the Australian surfwear maker said it will hold talks with a group led by Sycamore Partners Management over a A$287 million ($300 million) deal. Cosmo Oil Co. (5007) surged 8.6 percent in Tokyo after the Nikkei newspaper reported profit at the refiner may increase 50 percent.

The MSCI Asia Pacific Index (MXAP) advanced 0.5 percent to 135.46 as of 9:53 a.m. in Tokyo, before markets in China and Hong Kong open. The measure is heading for its longest winning streak in seven weeks. The gauge climbed the past five months on speculation Japan would unleash more stimulus and amid signs the U.S. economy is recovering.
“The tail risks have dissipated and that gives you some form of optimism when you look at the growth numbers,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne. “There’s reason to be optimistic, but don’t get too ahead of yourself. The transition under the new leadership in China is progressing well.”
China Premier Li Keqiang, who succeeded Wen Jiabao last month in a once-a-decade leadership transition, has signaled that the government will take steps this year to loosen state control over interest rates as part of efforts to sustain economic growth. Imports are forecast to rebound last month having declined 15 percent in February, estimates showed before the data release expected later today.
Japan’s Nikkei 225 Stock Average (NKY) gained 0.8 percent, Australia’s S&P/ASX 200 Index slipped 0.1 percent and South Korea’s Kospi index added 0.7 percent. New Zealand’s NZX 50 Index rose 0.4 percent.
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