Asian stocks advance

STOCK REPORT

Asian stocks were led higher by energy companies as crude oil held near a record high. PetroChina surged as much as 10 per cent, surpassing General Electric to become the world's second-largest company by market value.

The Morgan Stanley Capital International Asia-Pacific Index added 0.4 per cent to 168.78 as of 5:02 pm in Tokyo. Benchmarks in China, Hong Kong and India climbed to records. Japan's Nikkei 225 Stock Average rose 0.2 per cent, while the broader Topix index lost 0.1 per cent.

The dollar traded near a nine-week high against the yen on speculation Federal Reserve Chairman Ben S Bernanke will say the US economy is strong enough to weather a housing slowdown.

The currency gained for a second day against the euro as a US retail sales report on October 12 beat economists' estimates, suggesting a housing slump isn't weighing on consumer spending. Futures traders have trimmed bets the Fed will cut its benchmark interest rate for a second time this year.

The dollar traded at 117.66 yen at 5:07 pm in Tokyo compared with 117.61 late in New York on October 12. It reached 117.78 on October 11, the highest since Aug. 14. Against the euro, it was at $1.4226 from $1.4178, strengthening from a record low of $1.4283 reached on October 1.

Europe
European stocks were little changed. Royal Philips Electronics NV dropped after third-quarter profit at the world's biggest maker of light bulbs and electric shavers fell short of analysts' estimates.

The Dow Jones Stoxx 600 Index lost 0.1 per cent to 390.35 as of 8:05 am in London. The Stoxx 50 sank 0.1 per cent, while the Euro Stoxx 50, a measure for the euro region, decreased 0.2 per cent.

"We're looking at a flat market,'' said Manus Cranny, an analyst at Cantor Index in London. US
US stocks advanced for the first time in three days after retail sales rose more than economists forecast, sending the Standard & Poor's 500 Index to its longest streak of weekly gains since May.

The S&P 500 increased 7.39, or 0.5 per cent, to 1,561.8, completing its fifth straight weekly advance. The Dow Jones Industrial Average rose 77.96, or 0.6 per cent, to 14,093.08 and the Nasdaq Composite Index added 33.48, or 1.2 percent, to 2,805.68.

US retail sales expanded by 0.6 per cent in September, more than the 0.2 per cent projected by economists polled by Bloomberg, providing more evidence the housing slump won't spur a recession. A separate government report showed producer prices excluding food and energy gained less than estimated.

"The overall impact on the entire economy and markets from housing has been exaggerated,'' said Robert Carey, who oversees about $34.5 billion as chief investment officer at First Trust Portfolios in Chicago. "Valuations on balance are still on the low side for equities.''

The S&P 500 is valued at 18.1 times total earnings, 32 per cent below its average this decade, according to data compiled by Bloomberg.