Dec. 2 (Bloomberg) — Asian stocks rose for a third day, lifting the MSCI Asia Pacific Index to a six-week high, after commodity prices increased and UBS AG recommended investors buy Panasonic Corp.
Rio Tinto Ltd., the world’s third-biggest mining company, advanced 2.9 percent as gold climbed to a record. BlueScope Steel Ltd., Australia’s largest steelmaker, climbed 4.3 percent after boosting production capacity in Indonesia and saying demand is improving. Panasonic, the world’s biggest maker of home electronics, added 1.4 percent.
The MSCI Asia Pacific Index rose 0.6 percent to 120.15 as of 10:22 a.m. in Tokyo, set for its highest close since Oct. 21. The gauge has gained 5.6 percent in the past three days amid optimism the region’s companies will be sheltered from losses related to Dubai World, which is seeking to restructure its debt payments.
“We’re still quite positive on the Asian markets,” Arnout van Rijn, chief investment officer of Robeco Hong Kong Ltd., told Bloomberg Television. “Dubai to me is a blip. It looks like there is an over exaggeration.”
Japan’s Nikkei 225 Stock Average gained 0.5 percent. South Korea’s Kospi Index climbed 1.7 percent. Australia’s S&P/ASX 200 Index gained 1.3 percent and New Zealand’s NZX 50 Index increased 0.4 percent.
Futures on the S&P 500 Index were little changed. The gauge rose 1.2 percent yesterday as Chinese manufacturing grew at the fastest pace in five years and Dubai concerns eased. In addition, a report showed pending sales of U.S. existing homes unexpectedly rose in October.
Dubai World is seeking to delay payments on less than half its $59 billion of liabilities, easing the potential damage to banks recovering from $1.7 trillion of losses and writedowns from the global crisis.
Rio Tinto advanced 2.9 percent to A$73.45. BHP Billiton Ltd., the world’s biggest mining company, gained 1.5 percent to A$41.96.
The London Metal Exchange Index, a measure of six metals including copper and zinc, climbed 1.9 percent yesterday, its steepest increase in two weeks. In New York, gold futures rose 1.5 percent $1,200.20 an ounce, the first time the precious metal topped $1,200. Crude oil gained 1.4 percent to $78.37 a barrel, the highest settlement since Nov. 18.
BlueScope Steel climbed 4.3 percent to A$2.94. The company said it will invest an additional $40 million to boost its capacity in Indonesia. OneSteel Ltd., Australia’s No. 2 steel producer, added 2.3 percent to A$3.13.
The MSCI Asia Pacific Index has climbed 70 percent from a more than five-year low on March 9 amid signs stimulus measures were reviving economies around the world. Stocks in the benchmark index are valued at 22 times estimated earnings, compared with 18 times for the S&P and 16 times for Europe’s Dow Jones Stoxx 600 Index.
Panasonic added 1.4 percent to 1,151 yen. UBS recommended investors “buy” the stock and set a 12-month share-price estimate of 1,500 yen.
