Asian Stocks Rise, Led by Mitsubishi, BHP; ANZ Bank Tumbles
By Chua Kong Ho and Masaki Kondo
April 7 (Bloomberg) -- Asian stocks rose, led by commodity- related shares
after oil and metals prices advanced.
Mitsubishi Corp., Japan's largest trading company, and BHP Billiton Ltd., the
world's biggest miner, led gains. Mitsubishi UFJ Financial Group Inc. dropped
after the Nikkei English News said Japan's six major banks may report a 40
percent drop in combined profit. Australia & New Zealand Banking Group Ltd.
slumped after increasing provisions for bad debts.
``Investors are buying trading companies as they are likely to make very
strong earnings forecasts,'' said Yoji Takeda, who helps manage Asian funds
equivalent to $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong.
``Investors are expecting financial companies to disclose more writedowns.''
The MSCI Asia Pacific Index was little changed at 145.16 as of 11:11 a.m. in
Tokyo. About two stocks rose for each that declined. The index is down 8.1
percent this year on concern the U.S. will enter a recession amid mounting
losses at banks and brokerages.
Japan's Nikkei 225 Stock Average gained 0.4 percent to 13,350.39. Tokyo
Electric Power Co. slumped after Goldman, Sachs & Co. cut its rating on Japan's
electricity producers.
Stock benchmarks elsewhere in Asia rose. The Standard & Poor's 500 Index
added 0.1 percent on April 4, while the Dow Jones Industrial Average fell 0.1
percent.
Mitsubishi jumped 4 percent to 3,380 yen. BHP, Australia's biggest oil
producer, gained 3.8 percent to A$40.06. Rio Tinto Group, the world's No. 3
mining company, rose 3.7 percent to A$134.64.
Subprime Losses
A measure of six metals traded on the London Metal Exchange, including copper
and nickel, gained 1.2 percent on April 4. Crude oil rose 2.3 percent to
$106.23 a barrel in New York and was recently at $106.82.
Inpex Holdings Inc., Japan's largest oil explorer, advanced 1.8 percent to
1.15 million yen. Woodside Petroleum Ltd., Australia's second-biggest oil and
gas producer, rose 1.5 percent to A$56.90.
Mitsubishi UFJ, Japan's largest publicly traded bank, lost 1.4 percent to 973
yen. Mizuho Financial Group Inc., the No. 2 bank, fell 2.1 percent to 411,000
yen, snapping a four-day rally.
Losses related to U.S. subprime mortgages at Japan's six major banks have
expanded to as much as 800 billion yen ($7.9 billion), including about 400
billion yen at Mizuho Financial, the Nikkei English News reported April 5.
Australia & New Zealand Banking, the country's third- largest bank, fell 5.3
percent to A$23.32, after announcing it expects to set aside A$975 million
($898 million) to cover bad debts in the six months to March 31, up from A$567
million for fiscal 2007.
Commonwealth Bank of Australia, the nation's biggest by market value, lost
3.8 percent to A$43.76, the most since March 17. Westpac Banking Corp., the No.
3 bank, dropped 3.4 percent to A$24.27, the most since March 7.
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