Asian stocks climbed to 16-year highs yesterday. Honda Motor Co and Samsung Electronics Inc rose after reports showed that the biggest companies in Japan plan to boost spending and export demand in South Korea surged.
"The general picture is for a substantial performance in Asian shares as consumer spending in Japan and China, in particular, fuels profit growth," said Shane Oliver, who oversees about US$64 billion at AMP Capital Investors in Sydney.
Oliver said he increased his holding in Asian shares because "they're going higher."
The Morgan Stanley Capital International Asia-Pacific Index rose 1.2 percent to 132.47 at 5:15pm in Tokyo, the highest since January 1990. All 10 industry groups rose, with consumer-related and technology shares accounting for a third of the gain.
Japan's NIKKEI 225 Stock Average rose for the seventh straight day, adding 1.6 percent to 17,333.31. South Korea's KOSPI index gained 1.5 percent. The eight-day rally is the longest winning streak in more than four years.
Australia's S&P/ASX 200 Index and India's Sensitive index climbed to records, while Hong Kong's Hang Seng Index topped 16,000 for the first time since 2001. Markets rose around the region, except in Thailand and the Philippines.
Exporters in Japan and South Korea led the MSCI's gain.
Japan's third-largest automaker, Honda, rose 1.4 percent to ?7,390 (US$62.77).
Samsung Electronics, which accounts for one-tenth of South Korea's exports, gained 2.5 percent to 646,000 won (US$672.29), while Hynix Semiconductor Inc, the world's second-largest memory chipmaker, advanced 2.4 percent to 29,600 won.
In South Korea, exports rose 12.9 percent last month from a year earlier to a record US$27.04 billion, the Ministry of Commerce, Industry and Energy said on Saturday.
"Exports continue to remain strong, boosting expectations that the economy will maintain robust growth," said Kim Seong-ki, who oversees US$1.5 billion as chief investment officer at SH Asset Management Co in Seoul.
In Australia, Paladin Resources Ltd, the best performing stock on Australia's S&P/ASX 200 this year, paced yesterday's gains. Paladin, a uranium explorer, jumped 3.9 percent to A$5.38 (US$3.85), boosting its advance this year to 172 percent. Uranium prices have surged almost four-fold since 2003 as demand increases from countries such as China.
In Hong Kong, the Hang Seng jumped 1.6 percent to 16,063.75.
The last time it traded above 16,000 was on Feb. 14, 2001.
Thailand's SET Index fell 0.3 percent on concern a boycott by opposition parties in Sunday's elections will undermine Thai Prime Minister Thaksin Shinawatra's grip on power.
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