Asian
stocks rose, with the regional benchmark index extending its longest rally in nine months, after
Tokyo won the rights to host the 2020 Olympics,
China?s exports beat estimates and
Australia elected a new government.
Agricultural Bank of China Ltd. advanced 4.6 percent, pacing gains among Chinese lenders. Mitsubishi Estate Co. jumped 4.7 percent as
Japan?s biggest developer by market value may benefit from projects such as the Olympic Village complex that will house athletes.
BHP Billiton Ltd., the world?s largest mining company, added 1.4 percent in Sydney on optimism the new Australian government will abolish a mining tax.
Enlarge image 
Komazawa Olympic Park
People celebrate after Tokyo is selected as the host city for the 2020 Olympic and Paralympic Games during a public viewing at the Komazawa Olympic Park in Tokyo on Sept. 8, 2013.
People celebrate after Tokyo is selected as the host city for the 2020 Olympic and Paralympic Games during a public viewing at the Komazawa Olympic Park in Tokyo on Sept. 8, 2013. Photographer: Akio Kon/Bloomberg
Sept. 6 (Bloomberg) -- Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., talks about Australia's federal election and its implications for the nation's financial markets. Oliver also talks about emerging markets, the U.S. economy and budget. He speaks with Rishaad Salamat and Susan Li on Bloomberg Television's " Asia Edge." (Source: Bloomberg)
Sept. 6 (Bloomberg) -- Grant Forster, chief executive officer for Australia at Principal Global Investors, talks about the outlook for global stock markets and his investment strategy. He also discusses Federal Reserve monetary policy and tomorrow's national election in Australia with Susan Li on Bloomberg Television's " First Up." (Source: Bloomberg)
The MSCI Asia Pacific Index increased 1.4 percent to 135.56 as of 4:22 p.m. in
Hong Kong, with almost six shares rising for each that fell. The gauge is heading for its eighth day of advance, its longest such rally since December. The measure last week posted the biggest weekly increase since April as data from China, the U.S. and Europe added to signs the global economy is recovering.
?Data from China has been pointing to a bit of stability,? Mark Lister, Wellington-based head of private wealth research at Craigs Investment Partners Ltd., said by telephone. ?Tokyo winning the right to host the Olympics is a positive for Japan as that will do a lot for tourism and growth.?
Japan?s Topix index jumped 2.2 percent to the highest closing level in a month. Tokyo?s winning bid to host the 2020 Olympics may drive construction and tourism stocks higher and boost
consumer confidence, playing into Prime Minister Shinzo Abe?s plan to revive the world?s third-biggest economy.
Japanese Economy
The Topix extended this year?s surge to 36 percent, as Japanese equities perform the best among developed markets tracked by Bloomberg. Shares have jumped amid optimism Abe and the
Bank of Japan can lead the country out of deflation with stimulus and reforms.
A report today showed Japan?s economy expanded a revised 3.8 percent in the second quarter on an annualized basis, up from an original estimate of 2.6 percent.
South Korea?s Kospi index gained 1 percent.
Singapore?s Straits Times Index climbed 1.1 percent. Taiwan?s Taiex index added 0.3 percent. New Zealand?s NZX 50 Index increased 0.4 percent.
Hong Kong?s Hang Seng Index rose 0.6 percent and the Shanghai Composite Index climbed 3.4 percent as reports today showed China?s consumer inflation stayed below target for an eighth month while factory-gate prices fell by the least in six months in August, reflecting an economic pickup that leaves room for officials to add stimulus if needed.
China?s
exports rose 7.2 percent in August from a year earlier, the General Administration of Customs said in Beijing yesterday. That compares with the 5.5 percent median estimate of 46 economists surveyed by
Bloomberg News and July?s 5.1 percent gain.
Australian Election
Australia?s S& P/ASX 200 Index rose 0.7 percent.
Tony Abbott?s Liberal-National coalition won Australia?s weekend election and is heading for the biggest parliamentary majority since at least 2004, ushering in a government pledging to abolish a carbon price and mining tax.
Chinese lenders advanced.
Agricultural Bank of China increased 4.6 percent to HK$3.65 in Hong Kong.
Industrial & Commercial Bank of China Ltd., the nation?s biggest lender, gained 2.1 percent to HK$5.39. Bank of China Ltd. rose 1.5 percent to HK$3.50.
Ping An Bank Co., the least capitalized of China?s 17 publicly traded lenders, jumped 10 percent to 12.13
yuan in Shenzhen after saying it plans to sell 14.8 billion yuan ($2.4 billion) of stock to its controlling shareholder Ping An Insurance Group Co. to bolster its financial strength.
Vinda International Holdings Ltd. surged 37 percent to HK$10.88, the most since July 2007. Sweden?s Svenska Cellulosa AB,
Europe?s biggest private forest owner, offered to buy all outstanding Vinda stock in cash for HK$11 a share, about 38 percent more than the Chinese tissue maker?s last traded price before the announcement.
Relative Value
Shares on the MSCI Asia Pacific Index traded at 13.1 times estimated earnings on Sept. 6, compared with 15 times for the Standard & Poor?s 500 Index and 13.9 for Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Japanese developers and construction companies led gains on the Topix. With the economy already rebounding from the impact of Abe?s reflationary policies, winning the rights to host the Olympics bolsters optimism that Japan will succeed in quelling deflation and stoking domestic demand.
Mitsubishi Estate climbed 4.7 percent to 2,825 yen in Tokyo. Mitsui Fudosan Co., the nation?s biggest developer by sales, jumped 6.4 percent to 3,430 yen. Taisei Corp., a building contractor, surged 14 percent to 463 yen.
Miners Rise
Australian miners rose. Abbott will have to negotiate with minor parties in the Senate to scrap carbon pricing and a mining tax after his coalition won the biggest lower house majority since at least 2004 in Australia?s election.
BHP Billiton gained 1.4 percent to A$35.64.
Rio Tinto Group (RIO), the world?s second-largest mining company, added 1.4 percent to A$61.95.
Futures on the Standard & Poor?s 500 Index rose 0.3 percent today. The gauge closed little changed on Sept. 6 amid escalating tensions over
Syria. American employers added 169,000 workers last month, missing the median forecast of 180,000 in a Bloomberg survey of 96 economists. The
unemployment rate unexpectedly fell to 7.3 percent as more people left the
labor force.
The
Federal Reserve has said any reduction in stimulus will be tied to a sustained recovery in U.S. employment. The central bank will decide to cut its $85 billion in monthly bond purchases this month, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13. The
Federal Open Market Committee holds a two-day meeting on Sept. 17-18.
?Markets have been strong so far this month, but we shouldn?t forget there are still quite a few risks out there,? Lister said. ?The Fed could do some tapering, perhaps in a smaller scale, and that could give headwinds to the market.?
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