Asian stocks rose, led by exporters including Toyota Motor Corp. and Samsung Electronics Co., after a U.S. manufacturing report boosted optimism that growth in the world's largest economy may strengthen. Chip-related stocks such as United Microelectronics Corp. and Advantest Corp. advanced after JPMorgan Chase & Co. recommended buying shares of some U.S. chip-equipment makers. The Nasdaq Composite Index had its biggest gain in six months. ``The manufacturing report shows that the global economic outlook isn't as bad as many investors had thought,'' said Soichiro Monji, who helps oversee $11 billion as senior strategist at Daiwa SB Investments Ltd. in Tokyo. ``I expect stocks to continue to rebound for at least the next six months, with technology leading the way.''
Morgan Stanley Capital International Inc.'s Asia-Pacific index, which tracks 941 companies, gained 1.6 percent to 91.44 at 1:40 p.m. in Tokyo. The index climbed for a fourth day, its longest winning run since the period ended Aug. 27, when it rose for nine days. Computer-related stocks accounted for almost a third of the advance. Japan's Nikkei 225 Stock Average climbed 2.4 percent to 11,252.31. The broader Topix index added 1.7 percent to 1136.63. South Korea's Kospi index rose 3.5 percent. All other indexes in the region rose. China's stock markets are shut for a national holiday.
Exporters Rise
Manufacturing in the U.S. expanded for a 16th month in September as factories hired more workers, the Institute for Supply Management said on Oct. 1. The factory index had a reading of 58.5 last month. The index has showed expansion, marked by readings higher than 50, since June 2003. Toyota, the world's largest carmaker by value, advanced 1.4 percent to 4,270 yen. The automaker said on Oct. 1 its U.S. sales of cars and trucks rose 15 percent in September. The company is due to report earnings on Nov. 1. Hyundai Motor Co. and Kia Motors Corp. said separately on the same day they sold 20 percent more vehicles in September from a year ago. Hyundai Motor, the nation's largest automaker, gained 5 percent to 58,700 won. Kia, the nation's second-largest, climbed 4.1 percent to 11,350 won. Hyundai and Kia are due to report earnings on Nov. 12. ``Corporate earnings in the third and fourth quarters may be better than expected and we should increase holdings in exporters,'' said Kim Jun Ki, who manages the equivalent of $348 million at Hanwha Investment Trust Management Co. in Seoul. Samsung Electronics, South Korea's largest exporter, gained 5 percent to 484,000 won. Taiwan Semiconductor Manufacturing Co., the world's largest supplier of made-to-order chips, rose 1.8 percent to NT$45.30.
HSBC Advances
South Korea shipped 16.8 percent of its exports to the U.S. in the nine months through Sept. 30, government figures show. The U.S. is Taiwan's second-largest market after China. ``Their economic performance is quite related to the U.S.,'' said Stella Lau, who helps manage $1 billion at East Asia Asset Management Co. in Hong Kong. ``If the U.S. has a sustainable economic recovery, then the macroeconomic environment will be better.'' HSBC Holdings Plc, which relies on the U.S. for a third of its revenue, gained 1.2 percent to HK$125.50 in Hong Kong. The London-based bank controls the city's two largest lenders. Li & Fung Ltd., which orders Asian-made products such as clothing and furniture for U.S. importers, added 1.8 percent to HK$11.40. The U.S. factory report helped the Standard & Poor's 500 Index jump 1.5 percent, its biggest gain in four months. The Nasdaq, which gets two-fifths of its value from computer-related shares, rose 2.4 percent.
Computer-Related Shares
Advantest, the world's biggest maker of equipment used to test computer chips, jumped 5 percent to 6,960 yen. United Microelectronics, the world's No. 2 supplier of made-to-order chips, climbed 1.9 percent to NT$21.30. Hynix Semiconductor Inc., the world's second-biggest maker of computer memory chips, surged 4.1 percent to 11,550 won. Chartered Semiconductor Manufacturing Ltd., the world's No. 3 supplier of made-to-order chips, added 3.9 percent to S$1.08. Chip-equipment stocks may rally as investors anticipate an improvement in demand in the second quarter next year, Jay Deahna, an analyst at JPMorgan, wrote in a note on Oct. 1. He raised his ratings on Applied Materials Inc., the world's biggest maker of chip-production equipment, and Novellus Systems Inc., its smaller competitor, to ``overweight'' from ``neutral.'' Masatoshi Kikuchi, an equity strategist at Merrill Lynch & Co.'s unit in Tokyo, said investors should buy Japanese technology stocks as a buildup in inventories may improve by ``early next year.'' ///www.bloomberg.com