Asian Stocks Rise on ECB Interest-Rate Cut, U.S. Jobs

Asian stocks climbed as profit at Australian bank Macquarie (MQG) Group Ltd. rose, U.S. jobless claims fell to the lowest in five years and the European Central Bank cut interest rates to a record low.

Macquarie surged 11 percent, its biggest gain in four years, as profit at the Australia's largest investment bank topped estimates. New World Development Co. (17), the Hong Kong builder controlled by billionaire Cheng Yu-tung, gained 3.9 percent after receiving permission from the city's stock exchange to proceed with the listing of its local hotels. Fletcher Building Ltd., a manufacturer of construction products, sank 6.5 percent in Wellington as Goldman Sachs Group Inc. cut its outlook for building-material shares.

The MSCI Asia Pacific excluding Japan Index rose 0.1 percent to 480.88 as of 2:32 p.m. in Hong Kong, heading for the best two-week gain in four months, as three stocks advanced for every two that fell. Japan was closed today for a holiday.

"Unlike at this point in the last three years, you have central banks in Europe, the U.S. and Japan all easing," said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has $126 billion under management. "The market is a lot less worried about Europe. Profits are continuing to rise and we remain overweight stocks on a positive 12-month view. Housing indicators in the U.S. remain firm and the Fed is on standby. Valuations are still OK."

Relative Value

The MSCI Asia Pacific Index, the benchmark regional equities gauge that includes Japan, climbed 8.5 percent this year through yesterday amid optimism the Bank of Japan will deploy more measures to beat deflation and that policy makers in the U.S. and China remain on standby to buoy growth.

That left the gauge yesterday trading at 14 times average estimated earnings compared with 14.5 for the Standard & Poor's 500 Index (SPX) and 12.9 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Australia's S&P/ASX 200 Index was little changed, Hong Kong Hang Seng Index rose 0.2 percent and China's Shanghai Composite added 1.5 percent. South Korea's Kospi index advanced 0.4 percent and Taiwan's Taiex added 0.1 percent. New Zealand's NZX 50 Index and Singapore's Straits Times Index fell 0.7 percent.

Futures on the Standard & Poor's 500 Index were little changed. The measure advanced 0.9 percent yesterday after the European Central Bank lowered its main refinancing rate to 0.5 percent from 0.75 percent and Labor Department figures showed the number of Americans filing claims for jobless benefits unexpectedly dropped to the lowest level in more than five years.

Australian Banks

Macquarie jumped 11 percent to A$43.11 in Sydney, its biggest gain since June 2009, after posting a 17 percent increase in full-year profit.

Declines in other Australian financial shares limited gains on the MSCI Asia Pacific excluding Japan Index. Commonwealth Bank of Australia, the country's largest bank, declined 2 percent to A$71.06, a third day of losses. Westpac Banking Corp. (WBC), the second-biggest, slid 1 percent to A$33.55 even after saying it will pay a special dividend for the first time since 1988.

"The sector succumbed to a bout of profit taking after what has been a standout week," said Tim Waterer, a Sydney- based trader at CMC Markets Ltd. The S&P/ASX 200 Banks Index climbed to a record earlier this week, posting a 3.7 percent weekly advance.

New World gained 3.9 percent to HK$14 in Hong Kong. After the listing of the three hotels, New World will hold at least 35 percent of the securities and together with its parent, Chow Tai Fook Enterprises Ltd., will own more than 50 percent.

Housing Slowdown

Fletcher Building sank 6.5 percent to NZ$8.03 in Wellington, the biggest drop in 18 months, as Goldman Sachs analysts said the Australian housing-market recovery is slower than expected. The New Zealand-based company gets 47 percent of its sales in Australia.

Genting Singapore Plc, one of two companies licensed to run casinos in the city state, sank 7.5 percent to S$1.49 after reporting a 44 percent slump in first-quarter earnings.

A report today is projected to show the U.S. unemployment rate remained at 7.6 percent in April, while payrolls rose by 140,000 compared with an increase of 88,000 the prior month, according to the median estimate of economists in a Bloomberg survey.

European policy makers cut the main refinancing rate to a record-low 0.5 percent yesterday, from 0.75 percent, and reduced the marginal lending rate to 1 percent from 1.5 percent.