March 27 (Bloomberg) -- Australian shares and Japanese stock futures rose as higher commodity prices and better-than-expected earnings at U.S. companies boosted speculation the global recession is abating.
BHP Billiton Ltd., the world’s No. 1 mining company, climbed 1.6 percent in Sydney after prices for oil and metals advanced. U.S.-traded receipts of Canon Inc., the world’s biggest camera maker, gained 2.1 percent from the closing price in Tokyo after U.S. electronics retailer Best Buy Co. reported earnings that topped analysts’ estimates. Mizuho Financial Group Inc., Japan’s No. 2 listed bank, jumped 2.3 percent on its plan to reduce shareholdings.
Australia’s S&P/ASX 200 Index rose 0.5 percent to 3,665.10 as of 10:02 a.m. in Sydney. New Zealand’s NZX 50 Index was little changed at 2,615.66 in Wellington.
“U.S. consumer spending appears to be picking up,” Mitsushige Akino, who oversees the equivalent of $615 million at Tokyo-based Ichiyoshi Investment Management Co., said in an interview with Bloomberg Television. “The market will remain resilient, though technical indicators indicate it is overheating.”
Futures on Japan’s Nikkei 225 Stock Average expiring in June closed at 8,820 in Chicago, 1.3 percent higher than 8,710 in Osaka. The broader Topix index gained for a ninth day yesterday for the longest winning streak since August 2004.
Through yesterday, the MSCI Asia Pacific Index rose 7.5 percent this week, poised for its best weekly performance since the period ended Aug. 24, 2007. The gauge advanced 21 percent from a five-year low on March 9, technically entering a bull market, amid optimism central banks and governments are succeeding in their efforts to restart economic growth.
Earnings Surprise
In New York, the Standard & Poor’s 500 Index climbed 2.3 percent, after Best Buy, the largest U.S. electronics retailer, yesterday reported fourth-quarter earnings that were 15 percent higher that what analysts had anticipated. ConAgra Foods Inc., the maker of Banquet frozen dinners, also beat analyst estimates as material costs fell.
Crude oil for May delivery added 3 percent to $54.34 a barrel in New York yesterday, the highest settlement since Nov. 28. A measure of six primary metals traded in London rose 2.6 percent, the first gain in three days.
Mizuho is aiming to reduce its 2.9 trillion-yen ($29 billion) stockholdings to 2 trillion yen, Takashi Tsukamoto, who will become Mizuho’s chief executive officer on April 1, said in an interview. Losses on equity investments brought about two straight quarterly deficits at Mizuho, forcing the bank to raise $4.4 billion to shore up capital.
Japan’s ruling coalition is studying the creation of 1 trillion yen fund to buy property from real estate investment trusts, the Nikkei newspaper reported today, without saying where it got the information. The Tokyo Stock Exchange REIT Index, which tracks 40 such funds, has fallen 43 percent in the past year as tighter bank lending sparked a series of bankruptcies in the real estate sector.
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