Energy scrips top chart

GLOBAL MARKETS

Asian stocks rose the most in a week after companies, including Honda Motor Co, reported earnings that beat analysts' estimates, and higher oil and metals prices lifted commodities producers.

Eight of the 10 industry groups included in the Morgan Stanley Capital International Asia-Pacific Index advanced, with measures of materials and energy stocks posting the strongest gains. Benchmarks in China, Indonesia and South Korea reached records.

Steelmakers led gains in Japan, where the Nikkei 225 Stock Average rose 1.1 per cent, after JFE Holdings forecast a record operating profit for the current financial year. Hon Hai Precision Industry Co and Taiwan Semiconductor Manufacturing Co drove Taiwan's key stock index higher after US-based clients Apple and Qualcomm reported increases in profit.

The MSCI climbed 0.5 per cent to 147.55 as of 6:23 pm in Tokyo, set for its biggest gain since April 18. Indexes rose across the region, with the exception of India. Malaysia's market was shut for the coronation of a new king.

Honda, Japan's second-largest carmaker, gained 1.8 per cent to 4,060 yen, its biggest gain since April 4. Net income in the past quarter fell 20 per cent from a year earlier to 176.2 billion yen ($1.48 billion), the company said yesterday after the close of trading.

That was higher than the 141.1 billion yen average forecast of analysts surveyed by Bloomberg.

Shenzhen Development Bank, controlled by buyout firm Newbridge Capital, jumped 5 per cent to 25.95 yuan. First-quarter profit more than doubled from a year earlier to 535 million yuan ($69 million) as lending became more profitable, it said yesterday.

US

US stock and index futures advanced as investors bet earnings will keep beating analysts' estimates after Apple said profit almost doubled.

The Dow Jones Industrial Average surpassed 13,000 for the first time yesterday, as profit reports from more than half of its 30 members bolstered speculation that the biggest US companies will weather slower economic growth.

Europe

European stocks advanced for a second day after ABB reported earnings that beat analysts' estimates and Bayer said profit rose almost fivefold.

Of the 16 Dow Jones Stoxx 50 companies that have reported results so far this quarter, 10 have topped estimates, according to data compiled by Bloomberg.

The Stoxx 600 gained 0.5 per cent to 389.78 as of 12:03 pm in London. The Stoxx 50 added 0.5 per cent as did the Euro Stoxx 50, a measure for the 13 nations sharing the euro.

National benchmarks rose in all 18 western European markets except Iceland. The UK's FTSE 100 added 0.5 per cent. Germany's DAX climbed 0.8 per cent and France's CAC 40 advanced 0.3 per cent.

ABB, the world's biggest builder of electricity networks, gained 4.5 per cent to 24.2 Swiss francs. The company's first-quarter profit more than doubled to $537 million as utilities in China and Europe expanded and upgraded power grids to keep pace with growing demand. Analysts surveyed by Bloomberg expected profit of $429 million.

Bayer advanced 2.6 per cent to 52.10 euros. Germany's largest drugmaker said first-quarter profit rose almost fivefold to 2.8 billion euros ($3.8 billion) as a result of its acquisition of Schering.

Cap Gemini rallied 1.4 per cent to 58.89 euros after lifting its 2007 revenue growth target by 1 percentage. First-quarter sales gained 16 per cent to 2.2 billion euros.

France Telecom added 3.2 per cent to 21.64 euros. Europe's third-largest phone company, said first-quarter sales unexpectedly rose 1.8 per cent, surpassing analysts' estimates, lifted by revenue from mobile services in emerging markets including Egypt and Senegal.