Asian shares make merry

GLOBAL MARKETS/ STOCK REPORT

Asian stocks climbed for the fourth day to a two-week high, led by Toyota Motor after the company raised its sales forecast for next year.

Toyota advanced to the highest in almost two weeks and was the single biggest contributor to the gain in a regional benchmark index. STX Shipbuilding jumped the most this month after an energy unit bought oil fields in Europe.

"Toyota is very profitable in China and Russia, and is expanding in those markets faster than expected. The prospects for growth are looking good," said Masanori Ikunaga, who helps manage $4.1 billion at Sumitomo Mitsui Asset Management in Tokyo.

Mediatek fell the most in two years in Taipei after cutting its fourth-quarter sales forecast for the second time since November. Sanyo Electric slid the most in 10 months after the Tokyo Stock Exchange said the shares may be delisted.

The MSCI Asia Pacific Index rose 0.5 per cent to 157 as of 7:21 pm in Tokyo, with nine of its 10 industry groups climbing. The index, which has added 12 per cent this year, is on course for its fifth annual increase and its highest close since December 13. More than two stocks gained for each one that fell on Wednesday.

The US market will open on Wednesday after being closed yesterday for the Christmas holiday. Europe will remain closed for a second day. US stocks rose on December 24, sending benchmark indices to the highest levels in two weeks, as falling interest rates and a $33.3 billion agreement to restructure Canadian commercial debt improved the outlook for credit markets.

Japan's Nikkei 225 Stock Average climbed 0.7 per cent to 15,653, with the value of shares traded in Tokyo at 1.59 trillion yen ($14 billion), the lowest this year for a full day.

Benchmarks climbed, except in South Korea, Malaysia and Taiwan, and exchanges in Australia, New Zealand and Hong Kong were closed for a second day.

The Standard & Poor's 500 Index has climbed 3 per cent in the last three trading days, trimming its fourth-quarter drop to 2 per cent, after a concerted effort by central banks in North America and Europe helped push down borrowing costs.

The benchmark for American equities has advanced 5.5 per cent this year and is headed for its fifth straight annual gain.

Concerns that tighter credit markets may slow US economic growth has pushed stocks lower this quarter. The S&P 500 and Europe's Dow Jones Stoxx 600 Index may post their first fourth-quarter decline since 2000. The Dow Jones Stocks 600 Index has dropped 3.5 per cent since the end of September.

Toyota, Japan's biggest carmaker, rose 1.3 per cent to 6,180 yen, the highest close since December 13. The company said yesterday it will sell 9.85 million cars next year, more than a previous estimate of 9.8 million, as sales in Asia outside Japan increase.

West Asia
Saudi Arabia's Tadawul All Share Index climbed 0.3 per cent to 11,426, while Egypt's CASE 30 Index fell 0.5 per cent. In Turkey, the ISE National 100 Index gained 0.8 per cent and Israel's TA-25 Index was little changed.

The Tadawul has surged 42 per cent in dollar terms this quarter, the best performance among the 90 benchmark indices tracked by Bloomberg. In the UAE, the Dubai Financial Market General Index has gained 41 per cent in the fourth quarter as West Asian markets avoided the declines sparked by the worst US housing slump in 16 years and losses from sub-prime mortgage investments.

Middle East economies may expand at twice the global pace next year, according to Morgan Stanley. Profit growth may exceed the biggest emerging markets as revenue from oil sales spurs construction and increases consumer demand.

Turkey's ISE National 100 has climbed 70 per cent in dollar terms in 2007 for the seventh-best performance among the global benchmarks.