Mining Companies Exploration and Investment News

Asian stocks rose, driving the MSCI Asia Pacific Index to a six-week high, as better-than-estimated U.S. jobs data and a pledge by French President Nicolas Sarkozy to support Greece boosted confidence in the global recovery.

Sony Corp., which gets almost a quarter of its sales in the U.S., climbed 3.9 percent. BHP Billiton Ltd., the world’s largest mining company, rose 2.4 percent after winning a 55 percent price increase from JFE Holdings Inc.’s steel unit. Arrow Energy Ltd. surged 46 percent after receiving a takeover offer. KT Corp. rose 5.5 percent in Seoul after South Korea’s communications regulator imposed a cap on marketing costs.

“Improving economic figures from the U.S. bodes well for equities as it will help boost Asian exports,” said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co., which holds $65 billion in assets. “Concerns about Greece have also been waning as investors are hoping the situation will be resolved soon.”

The MSCI Asia Pacific Index rose 1.6 percent to 122.21 as of 11:57 a.m. in Tokyo, set to close at the highest level since Jan. 22. The gauge has fallen 3.6 percent from a 17-month high on Jan. 15 on concern over budget deficits in Europe and speculation governments around the world will withdraw stimulus. France’s Sarkozy said at the weekend the euro region is ready to rescue Greece should it struggle to fund its deficit.

Hong Kong’s Hang Seng Index jumped 1.9 percent, the biggest advance among Asia Pacific benchmark indexes. Japan’s Nikkei 225 Stock Average rose 1.8 percent, while South Korea’s Kospi Index climbed 1.1 percent.

Jobless Rate

Futures on the Standard & Poor’s 500 Index advanced 0.1 percent. The gauge jumped 1.4 percent after government figures showed the U.S. jobless rate was at 9.7 percent in February. The rate was projected to increase to 9.8 percent, according to the median estimate of 80 economists surveyed by Bloomberg News.

Christina Romer, President Barack Obama’s chief economist, told Bloomberg Television that it’s “very realistic” to expect employment growth in the U.S. in the next few months.

“U.S. employment is recovering steadily and consumption is starting to grow,” said Akio Yoshino, chief economist at Societe Generale Asset Management (Japan) Inc., which manages the equivalent of $17 billion. “This steady pace of recovery is positive for the market.”

Sony climbed 3.9 percent to 3,330 yen. Nissan Motor Co., which gets more than a third of its revenue in North America, advanced 3.7 percent to 726 yen.

Consumer Stocks

Japanese exporters also rose as the yen depreciated to 90.43, compared with 89.29 against the dollar at the close of stock trading in Tokyo on March 5. Against the euro, Japan’s currency weakened to 123.77 from 121.36. A weaker yen boosts the value of sales generated overseas in local terms for Japanese companies.

In Sydney, BHP Billiton rose 2.4 percent to A$43.52. Rio Tinto Group, the world’s third-largest mining company, increased 2.3 percent to A$76.72. The London Metals Index, a measure of six metals including copper and zinc, climbed 1.7 percent on March 5.

A measure of material producers is the best performing of the MSCI Asia Pacific Index’s 10 industry gauges in the past year on optimism the global recovery will boost metals demand.

The MSCI Asia Pacific Index has surged 73 percent in that time as more than $2 trillion of government spending helped drag the world economy out of its worst slowdown since World War II. Japan posted a current-account surplus in January as exports climbed for a second month, a government report showed today.

Global Valuations

Stocks in the Asian gauge are valued at an average 18.6 times estimated earnings, compared with 14.6 times for the S&P 500 and 12.9 times for the Stoxx Europe 600 Index.

“Valuations globally aren’t stretched if the recovery becomes self-sustaining,” said Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management in Sydney. “We won’t know until the second half of the year how the recovery will look in the absence of stimulus.”

Woodside Petroleum Ltd., Australia’s second-biggest oil and gas producer, rose 2.1 percent to A$45.44. PetroChina Co., China’s largest oil producer, advanced 3 percent to HK$9.20 in Hong Kong. Crude oil for April delivery gained 1.6 percent to settle at $81.50 a barrel in New York, the highest closing price since Jan. 11. Futures gained 0.6 percent today.

Arrow Energy soared 46 percent to A$5.07. The Australian coal-seam gas producer said it received a takeover offer worth more than A$3.3 billion ($3 billion) from Royal Dutch Shell Plc and PetroChina.

Spending Curbs

KT Corp., South Korea’s largest phone and Internet company, gained 5.5 percent to 45,900 won. Telecommunications companies in the country will be restricted to spending no more than 22 percent of total sales for marketing their fixed-line and wireless services this year, the communications regulator said. SK Telecom Co. climbed 3.8 percent to 177,000 won.

Dentsu Inc., Japan’s largest advertising company, climbed 4.2 percent to 2,313 yen. The company said revenue in February increased 8.8 percent on a parent company basis. Qisda Corp. jumped 6.8 percent to NT$17.40 in Taipei after it said sales gained 29 percent from a year ago.