Asian Stocks Rise, Dollar Falls as China, Japan Signal Rebound

By Linus Chua and Saeromi Shin
April 1 (Bloomberg) -- Asian stocks advanced and the dollar weakened as signs of economic growth from China, Japan and South Korea added to investor optimism that the global recovery is strengthening. Copper prices rose.
The MSCI Asia Pacific Index climbed 0.9 percent to 126.25 at 4 p.m. in Tokyo, after the measure advanced for four straight quarters. The dollar traded near a one-week low and futures on the Standard & Poor’s 500 Index rose 0.3 percent. The Stoxx Europe 600 increased 0.4 percent to 264.63 at 8 a.m. in London.
Economic data from the world’s second- and third-largest economies reinforced confidence in the global economic rebound.
China’s manufacturing expanded at a faster pace while a Bank of Japan survey showed confidence among the nation’s largest manufacturers rose for a fourth straight quarter. Investors were buoyed by a successful $11 billion initial public offering in Japan, the biggest share sale in two years. The Baltic Dry Index advanced for the first time in 12 days and South Korea’s exports rose faster than economists expected.
"Growth is returning," Chu Moon Sung, a Seoul-based fund manager at Shinhan BNP Paribas Asset Management Co. in Seoul, which manages $28 billion. "Companies will increase hiring in anticipation of stronger demand, which means the virtuous cycle of the global economy will start to set in. We’re not far from there, and investors should be optimistic."
Japan’s Nikkei 225 Stock Average rose 1.4 percent, South Korea’s Kospi Index gained 1.6 percent and China’s Shanghai Composite Index climbed 1.1 percent after ending its worst quarter since it entered a bear market in August.

Shipping Stocks

Asia’s biggest shipping stocks gained after the Baltic Dry index of freight rates rose for the first time since March 15.
Nippon Yusen K.K., Japan’s largest shipping line, increased 1.4 percent, Kawasaki Kisen Kaisha Ltd. climbed 2.4 percent. STX Pan Ocean Co., South Korea’s biggest bulk carrier, advanced 4.1 percent to a nine-month high.
In China, Datong Coal Industry Co., the nation’s third- largest coal company by capacity, climbed 2.9 percent. Baoshan Iron & Steel Co., the nation’s biggest steelmaker, increased 1.3 percent. Jiangxi Copper Co. rose 0.8 percent as prices of the metal gained as much as 0.8 percent to $7,852 a ton on the London Metal Exchange.
Lihir Gold Ltd., the second-largest gold mining company on the Australian stock exchange, surged 33 percent after it rejected a A$9.2 billion ($8.4 billion) cash and stock takeover from Newcrest Mining Ltd. CSR Ltd. jumped 2.9 percent as Bright Food Group Co., Shanghai’s biggest food company, raised the offer for the sugar unit of Australia’s second-largest building products maker to A$1.75 billion.

Dai-Ichi Offering

Dai-ichi Life Insurance Co., Japan’s second-largest life insurer, soared 14 percent in Tokyo trading after the world’s biggest initial public offering in two years. Dai-ichi’s $11 billion IPO is the world’s largest since San Francisco-based Visa Inc. sold $19.7 billion of shares in March 2008. In Japan, it’s the biggest offering since NTT DoCoMo Inc.’s $18.1 billion deal in October 1998, data compiled by Bloomberg show.
"In one day, $11 billion comes into the market," said Ed Rogers, chief executive officer of Tokyo-based hedge-fund adviser Rogers Investment Advisors Y.K. in an interview with Bloomberg television in Tokyo today. "That’s great for the equity markets of Japan. It’s also great for the economy of Japan because Dai-ichi is not going to just sit on it."

Dollar, Euro

The dollar traded lower against the euro as signs Asian economies are picking up damped demand for the greenback as a refuge. New Zealand’s dollar fell against all major counterparts after the International Monetary Fund said the currency was overvalued and may decline as the nation’s interest-rate advantage over the U.S. narrows.
The dollar traded at $1.3508 per euro from $1.3510 in New York yesterday. It earlier touched $1.3561, the weakest since March 23. The yen was at 126.38 per euro from 126.27. Earlier, it reached 126.63, the lowest level since Feb. 3. The U.S.
currency traded at 93.56 yen from 93.47 yen. It earlier traded at 93.64, the strongest since Jan. 8.
The New Zealand dollar fell after the IMF said that the nation’s current-account deficit will widen if the currency remains where it is now. The so-called kiwi fell 0.8 percent to
70.535 U.S. cents. It dropped 0.7 percent to 65.984 yen.
Crude oil for May delivery fell 20 cents to $83.56 a barrel in electronic trading on the New York Mercantile Exchange, dropping from a 17-month.
The cost of protecting Asia-Pacific corporate and sovereign bonds from non-payment increased, according to traders of credit-default swaps. The Markit iTraxx Australia index rose 1 basis point to 86.5 basis points, according to Citigroup Inc., and the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan increased 1 basis point to 98 basis points, Royal Bank of Scotland Group Plc prices show.