Asian stocks rose this week as benchmarks in Japan and South Korea advanced for a fourth week, their longest rallies in more than a year. Hong Kong's Hang Seng Index had its longest weekly string of gains in 3 1/2 years.
Exporters such as Canon Inc and Hynix Semiconductor Inc paced the advance after economic forecasts in a US private survey were raised for the first time in a year. Stocks also climbed after the Standard & Poor's 500 Index rose to a one-year high on optimism the US Federal Reserve will cut interest rates this month.
"We are seeing some signs of a recovery in the US and that's spreading through other markets in Asia," said Yoji Takeda, who helps manage US$250 million in Asian equities at RBC Investment Management Ltd. "The fact that the US markets have run so much" has helped. Takeda is buying exporters such as TDK Corp.
Japan's Nikkei 225 Stock Average gained 2.2 percent to 8980.64 this week, the longest weekly gain since March 8 of last year.
The Topix index rose 1.3 percent to 881.30.
Elsewhere, Korea's Kospi index advanced 3.6 percent. The index rose for six weeks in the period to March 22 of last year. Hong Kong's Hang Seng Index added 1.7 percent, up for a seventh week.
The index climbed for eight weeks in the period to Dec. 10, 1999.
Even so, gains in the coming week may be limited after economic reports from the US on Friday showed consumer confidence in the world's biggest economy unexpectedly faded this month, interrupting the S&P 500's biggest rally in the three-year bear market.
The University of Michigan's preliminary June sentiment index fell to 87.2 from 92.1 last month. Economists had expected a reading of 93.
The S&P 500 declined 1 percent to 988.61, while the Dow Jones Industrial Average slipped 0.9 percent to 9117.12. The NASDAQ Composite Index lost 27.13, or 1.6 percent, to 1626.49.
Canon, Japan's biggest maker of office equipment, rose 5.5 percent to ?5,520, ending the week at the highest since the stock began trading on the Tokyo Stock Exchange in November 1949.
The stock rose for the eighth week in nine.
Canon, which relies on overseas sales for 70 percent of its revenue, said on Wednesday first-half net income will probably surge by 78 percent. The world's largest laser printer maker reported record earnings for three consecutive years.
Toyota Motor Corp, which derives about 82 percent of operating profit from North America, rose 2 percent to ?3,080 this week. It advanced for a fourth week.
"Strength in the US economy and market is a prerequisite for the Japanese market to achieve a solid recovery, and that's becoming more apparent," said Atsushi Ishii, who helps manage the equivalent of US$59 billion at Tokio Marine & Fire Insurance Co. He declined to comment on his holdings.
Hynix, the world's third-largest maker of computer-memory chips, surged 36 percent to 5,580 won in the week. Hynix's exports account for more than 90 percent of its total sales.
Samsung Electronics Co, the world's biggest maker of computer-memory chips, added 5.1 percent to 350,500 won. The company gets about a fifth of its total sales in the US.
The US economy, the world's largest, is forecast to expand 2.4 percent this year, up from last month's estimate of 2.3 percent, according to the consensus of 53 economists surveyed this month by Blue Chip Economic Indicators, a Kansas City, Missouri-based publication. It was the first improvement since last June.
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