Asian stocks rise on retail

GLOBAL MARKETS/ STOCK REPORT

Asia's benchmark stock index rose the most in nine weeks after US retail sales climbed during the post-Thanksgiving weekend, boosting the prospects for exports to the region's biggest overseas market.

Nintendo, maker of the Wii game console, and LG Electronics, Asia's second-largest maker of mobile phones, advanced after ShopperTrak RCT reported that US retail sales on November 23 climbed 8.3 per cent from a year earlier. Westfield Group, the owner of 59 shopping malls in the US, rose to a three-week high.

"The holiday shopping spending in the US may be surprisingly healthy," said Hisakazu Amano, who helps oversee about $16 billion at T&D Asset Management in Tokyo.

The MSCI Asia Pacific Index added 2.7 per cent to 158.51 at 5:52 pm in Tokyo, set for its biggest advance since September 19. More than six stocks gained for each that slid.

South Korea's Kospi climbed 82.45, or 4.7 per cent, its second-biggest gain on record. Japan's Nikkei 225 Stock Average rose 1.7 per cent to 15,135.21 and the broader Topix index jumped 2.1 per cent, led by Mitsubishi UFJ Financial Group, after the Nikkei newspaper said China's new state investment fund will buy Japanese stocks.

The S&P/ASX 200 Index added 2.2 per cent in Australia, where voters ousted Prime Minister John Howard on November 24 and elected Kevin Rudd as their new leader. Rio Tinto Group surged after the China Business Journal said the Chinese state-backed fund plans to bid for the world's third-largest mining company.

EUROPE
European stock-index futures advanced, tracking US and Asian markets higher, after gains in retail sales in the US suggested consumer demand remains resilient in the world's largest economy.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the nations using the euro, added 30 points, or 0.7 per cent, to 4,317 at 7:40 am in London. The UK's FTSE 100 Index may increase 61 points, according to CMC Markets.

US
US stock-index futures gained on speculation retail sales after the Thanksgiving holiday showed the American consumer's appetite for shopping has not abated.

Amazon.com and EBay advanced in Europe on forecasts sales on so-called ``Cyber Monday'' might rise to a record. Citigroup Inc. paced bank shares higher as Bank of America Corp. leads efforts to find backers for an $80 billion fund to bail out short-term debt markets.

Standard & Poor's 500 Index futures expiring in December climbed 9.30 points to 1,451.20 as of 9:28 am in London. Dow Jones Industrial Average futures increased 74 points to 13,060. Nasdaq-100 Index futures added 13.50 points to 2,046.

"The US consumer has not surrendered," said Werner Wittenhagen, who helps oversee the equivalent of $21 billion at LBBW Asset Management in Stuttgart, Germany. "It's a psychological thing. If people aren't doing so well, they don't want to show that and might shop even more. And bank stocks show signs of recovery."

US stocks rose the most in seven days as shoppers packed stores on the first day of the holiday shopping season and investors speculated a weak dollar will make exports more competitive.