Asia stocks rise as yen drops, Japan's Abe approved as Premier

Asian stocks rose, with the regional benchmark index trading less than one per cent from its highest close for the year, as the yen dropped and Shinzo Abe was approved as Japan’s prime minister after promising to promote more stimulus measures.

Nissan Motor Co, a carmaker that derives almost 80 per cent of sales overseas, gained 2.1 per cent in Tokyo. Hitachi Ltd rose 2.1 per cent after its president said the company plans to double its operating margin. Tradewinds (Malaysia) Bhd, a palm oil and rice producer, jumped 15 per cent in Kuala Lumpur after receiving a takeover offer from companies linked to billionaire Syed Mokhtar Al-Bukhary.

The MSCI Asia Pacific Index added 0.2 per cent to 128.65 at 3:18 pm in Tokyo with about two stocks rising for each that fell. The measure, which closed at a 16-month high of 129.39 on December 19, gained three per cent this month through yesterday. Equity markets in Hong Kong, Australia and New Zealand are closed on Wednesdsay for holidays.

“I think the market will keep a strong momentum,” said Masaru Hamasaki, chief strategist at Toyota Asset Management Co, which oversees the equivalent of about 1.79 trillion yen ($21 billion). “The market focus will switch to what measures they will actually introduce and how much impact they can make, after stocks rose on expectations. The market will edge up from the current level if they meet expectations.”

The MSCI Asia Pacific Index climbed 13 percent this year as of yesterday as US and Chinese economies showed signs of recovery and central banks around the world took action to shore up growth. The Asian benchmark trades at 14.6 times estimated earnings on average, compared with 13.8 times for the Standard & Poor’s 500 Index and 12.7 times for the Stoxx Europe 600 Index.