Japanese stocks gained, led by mobile phone-related companies such as Kyocera Corp., after Merrill Lynch & Co. raised this year's forecast for global shipments of handsets because customers are switching to newer models. ``The demand is looking solid for mobile handsets,'' said Hideo Ueki, who oversees $12 billion in Japanese equities as a chief investment officer at UBS Global Asset Management in Tokyo. ``The replacement cycle will create demand for these companies for a year or two.'' Ueki declined to say what he's buying or selling.
The Nikkei 225 Stock Average climbed 0.6 percent to 11,508.75, the highest since May 6, at the 3 p.m. close in Tokyo. Oil and energy companies also advanced after Nippon Oil Corp. said it will refine crude oil for PetroChina Co., raising optimism there may be more orders from Chinese producers. The Morgan Stanley Capital International Asia-Pacific Index, which tracks the performance of more than 900 stocks, rose 0.5 percent to 90.30, set for its highest since May 6.
The Taiex index gained after Taiwan's exports grew faster than expected in May, while Hong Kong's Hang Seng Index climbed after the city's April retail sales beat some economists' forecasts. All other benchmarks advanced, except those in China, Thailand and India. Key indexes in Australia and South Korea were little changed.
Mobile-Phone Shipments
Kyocera, Japan's largest maker of cellular handsets using a format developed by Qualcomm Inc., rose 1.9 percent to 9,230 yen. NEC Electronics Corp., the world's biggest maker of chips for cell-phone screens, jumped 4.7 percent to 7,150 yen. Merrill Lynch raised its 2004 forecast for global mobile- phone shipments by 5.2 percent to 602 million, saying that a shift to third-generation handsets will help boost demand. It also increased its forecast for 2005 shipments to 658 million from 615 million. Nippon Oil surged 4.6 percent to 664 yen. Japan's biggest refiner said it plans to sign a contract with PetroChina next month to refine 20,000 barrels of crude oil a day for the Chinese oil company. ``There's a shortage of refining capacity in China due to robust demand and that could mean we may see more refiners like Nippon Oil being approached by Chinese companies,'' said Makoto Sakuma, who helps manage the equivalent of $3.6 billion at Asahi Life Asset Management Co. in Tokyo and holds Nippon Oil shares. Nippon Mining Holdings Inc., Japan's No. 3 refiner, rose 2.6 percent to 508 yen, while Cosmo Oil Co., the nation's fifth largest, added 3.6 percent to 289 yen.
`Brighter Outlook'
The Taiex gained 0.9 percent to 5986.76. The island's exports climbed 40 percent to $15.7 billion in May from a year ago, the Ministry of Finance said yesterday. The media forecast in a Bloomberg survey was for 27 percent growth. Taiwan Semiconductor Manufacturing Co., the world's largest supplier of made-to-order chips, climbed 2.7 percent to NT$56.50. Quanta Computer Inc., the world's largest notebook computer maker, rose 1.4 percent to NT$73. ``Taiwan's exports hit a record in May despite the slow season, signaling an even brighter outlook when the electronics sector enters its peak season in the third quarter,'' said Kevin Yang, who manages the equivalent of $90 million as vice president of International Investment Trust Co. in Taipei.
``We especially favor notebook computer makers like Quanta Computer and related peripherals makers like AU Optronics,'' said Yang.
Recovery
The Hang Seng climbed 1.1 percent to 12,457.17. Giordano International Ltd., a casual-wear retailer, jumped 3.2 percent to HK$4.80. Sa Sa International Holdings Ltd., which sells cosmetics, advanced 2.6 percent to HK$2.90. Hong Kong's retail sales climbed 23 percent from a year ago after rising 9.4 percent in March, the government said. That was higher than the 19 percent jump forecast in a Bloomberg survey and was the biggest gain since January 1992. Among other gainers, NGK Insulators Ltd., Japan's biggest maker of electrical insulators, jumped 6.6 percent to 853 yen after Deutsche Securities Ltd. raised its rating on the stock to ``buy,'' citing increasing demand for insulators in China. Japan's shipping companies also advanced. Morgan Stanley raised its 12-month price estimates for their shares, saying increasing container revenue and bulk shipping will boost profits.
Nippon Yusen K.K., Japan's largest shipping line, added 1.3 percent to 474 yen, while Mitsui O.S.K. Lines Ltd., the second biggest, rose 3.1 percent to 541 yen. Kawasaki Kisen Kaisha Ltd., the No. 3 shipper, surged 3.6 percent to 514 yen. ``Profit growth continues to stand out for the shipping lines,'' said Tomokazu Soejima, an analyst who covers transport companies at Morgan Stanley's brokerage unit in Japan. Soejima expects Nippon Yusen shares to rise as high as 598 yen over the next year. He also boosted his estimates for Mitsui O.S.K. shares to 700 yen and for Kawasaki Kisen to 685 yen. //www.bloomberg.com