Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080612/article_362865.htm
Firm dollar lifts Asian markets
Created: 2008-6-12
Author:Chen Shiyin
ASIAN stocks advanced yesterday for the first time in three days on speculation that the stronger US dollar will boost profits for exporters of cars and consumer electronics.
Toyota Motor Corp, Japan's largest vehicle maker, gained. Fuji Heavy Industries Ltd surged after Morgan Stanley raised its rating, citing benefits from a weaker yen.
"A strong dollar is favorable for Asia because that makes the region's exports more competitive," said Dennis Lee, who helps manage the equivalent of US$6 billion at CIMB-Principal Asset Management Bhd in Kuala Lumpur.
The MSCI Asia Pacific Index added 0.3 percent to 143.89 at 5:29pm in Tokyo, after earlier falling as much as 0.6 percent. The benchmark lost 4.6 percent in the previous two days, Bloomberg News said.
Most Asian equity markets advanced, led by Japan's Nikkei 225 Stock Average, which climbed 1.2 percent to 14,183.48. Vietnam's VN Index fell for a record 25th day after policy makers raised interest rates to the highest in Asia to tame the quickest inflation since at least 1992.
Most United States stocks fell for a third day on Tuesday, led by raw- materials and energy producers. Energy and metal prices dropped after Federal Reserve Chairman Ben S. Bernanke said economic risks have faded, spurring bets that interest rates will rise and bolster the US dollar.
Toyota Motor Corp, which gets about half of its profit from North America, rose 2.4 percent to 5,550 yen (US$51.73). CLSA Ltd increased the car maker's operating profit forecast by 13 percent, saying that the falling yen will boost earnings.
Canon Inc, the world's biggest maker of digital cameras, gained 3.4 percent to 5,520 yen. Nintendo Co maker of the Wii game console, advanced 1.1 percent to 56,500 yen.
The yen dropped to 107.46 versus the US dollar yesterday, after slumping 2.3 percent in the previous two days to a level not seen since February 26. A weaker yen increases the value of Japanese exporters' US dollar-denominated sales when converted into local currency.
Fuji Heavy rallied 8.8 percent to 581 yen, its highest close since November 7 and the biggest percentage gain in MSCI's Asian index.
Morgan Stanley raised its rating on the shares to "equal weight" from "underweight," because of better-than-expected sales on new models.
Toyota Motor Corp, Japan's largest vehicle maker, gained. Fuji Heavy Industries Ltd surged after Morgan Stanley raised its rating, citing benefits from a weaker yen.
"A strong dollar is favorable for Asia because that makes the region's exports more competitive," said Dennis Lee, who helps manage the equivalent of US$6 billion at CIMB-Principal Asset Management Bhd in Kuala Lumpur.
The MSCI Asia Pacific Index added 0.3 percent to 143.89 at 5:29pm in Tokyo, after earlier falling as much as 0.6 percent. The benchmark lost 4.6 percent in the previous two days, Bloomberg News said.
Most Asian equity markets advanced, led by Japan's Nikkei 225 Stock Average, which climbed 1.2 percent to 14,183.48. Vietnam's VN Index fell for a record 25th day after policy makers raised interest rates to the highest in Asia to tame the quickest inflation since at least 1992.
Most United States stocks fell for a third day on Tuesday, led by raw- materials and energy producers. Energy and metal prices dropped after Federal Reserve Chairman Ben S. Bernanke said economic risks have faded, spurring bets that interest rates will rise and bolster the US dollar.
Toyota Motor Corp, which gets about half of its profit from North America, rose 2.4 percent to 5,550 yen (US$51.73). CLSA Ltd increased the car maker's operating profit forecast by 13 percent, saying that the falling yen will boost earnings.
Canon Inc, the world's biggest maker of digital cameras, gained 3.4 percent to 5,520 yen. Nintendo Co maker of the Wii game console, advanced 1.1 percent to 56,500 yen.
The yen dropped to 107.46 versus the US dollar yesterday, after slumping 2.3 percent in the previous two days to a level not seen since February 26. A weaker yen increases the value of Japanese exporters' US dollar-denominated sales when converted into local currency.
Fuji Heavy rallied 8.8 percent to 581 yen, its highest close since November 7 and the biggest percentage gain in MSCI's Asian index.
Morgan Stanley raised its rating on the shares to "equal weight" from "underweight," because of better-than-expected sales on new models.
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