ASIAN stocks rose for a third day yesterday, led by mining companies and steel makers, on speculation that demand for raw materials on emerging markets will support price rises.
Posco climbed in Seoul after Lehman Brothers Holdings Inc raised its share-price forecast. BHP Billiton Ltd gained in Sydney after copper and zinc rose in London on May 30 for the first time in three days. Mizuho Financial Group Inc led gains in Tokyo on speculation banks will be able to boost profits by raising interest rates, said Bloomberg News.
"Commodities prices will remain rising as long as emerging economies grow," said Hisakazu Amano, head of fund management at T&D Asset Management Co, which oversees the equivalent of US$39 billion in Tokyo. "Expectations banks' profitability will improve is prompting investors to buy financial companies."
The MSCI Asia Pacific Index added 1.1 percent to 151.77 by 5:38pm in Tokyo, extending a two-day, 2.1-percent rally. A measure of raw-material suppliers increased 1.7 percent, the biggest gain among 10 industry groups.
Japan's Nikkei 225 Stock Average climbed 0.7 percent to 14,440.14, erasing earlier losses of 1 percent. Sony Corp advanced after Goldman Sachs Group Inc upgraded the stock.
Thai loss
About half of the benchmark indexes open for trading gained. Thailand's SET Index posted the region's largest loss after anti-government protesters staged a street rally for the eighth day.
United States stocks climbed last Friday, sending the Standard & Poor's 500 Index to its second straight monthly gain. S&P 500 futures expiring in June fell 0.2 percent recently.
BHP Billiton, the world's largest mining company, gained 4.6 percent to A$45.49 (US$44.1), its largest advance since May 14. Rio Tinto Group, the third biggest, climbed 2.7 percent to A$141.70.
A measure of six metals traded on the London Metal Exchange, including copper and nickel, snapped a three-day loss, gaining 0.6 percent on May 30. Zinc rose 1 percent and copper 0.6 percent.
Crude oil for July delivery advanced 0.6 percent on May 30 to US$127.35 a barrel in New York after Mexico shut two export terminals.