Asian Stocks Gain on Esprit, Cnooc Earnings; BHP, Sony Rise

Aug. 30 (Bloomberg) -- Asian stocks rebounded as better-than- estimated earnings at Esprit Holdings Ltd. and Cnooc Ltd. boosted expectations for profit growth in the region.

Esprit, which sells clothes in more than 40 countries, surged to a record. Samsung Electronics Co. paced gains among semiconductor stocks after Seagate Technology, the world's biggest maker of hard-disk drives, boosted revenue forecasts.

``Earnings we've seen so far are upbeat, fueling positive sentiment in the market,'' said Mona Chung, who helps manage $2.5 billion at Daiwa Asset Management Ltd. in Hong Kong. ``There's a strong growth story in Esprit and we believe it's sustainable.''

The Morgan Stanley Capital International Asia-Pacific Index climbed 0.8 percent to 149.09 at 1:47 p.m. in Tokyo, following a 1.6 drop yesterday. Technology and materials stocks accounted for a third of today's gain.

The Nikkei 225 Stock Average added 1.1 percent, while Hong Kong's Hang Seng Index rose 2.1 percent. The Philippine Stock Exchange Index surged 3.5 percent, the region's biggest gain, after President Gloria Arroyo said the nation's economy grew faster than expected. All other benchmarks advanced.

BHP Billiton Ltd., Australia's biggest oil producer, climbed after the price of crude gained the most in a month. A decline in the yen helped lift Japanese exporters Sony Corp. and Nintendo Co. Industrial and Commercial Bank of China Ltd. rose on an acquisition.

Higher profits have helped ease concerns that a credit crisis stemming from U.S. subprime, or higher risk, mortgages would stunt growth in the world's largest economy. A sell-off last month erased at least $5.5 trillion from global equities.

`Good Shape'

Esprit jumped 7.5 percent to HK$112.50. Full-year profit rose 39 percent to HK$5.2 billion ($666 million) on higher sales in Europe, beating the HK$4.8 billion analysts in a Bloomberg News survey expected. Credit Suisse Group raised its share-price target on Esprit by 18 percent, a report today said.

``Strong corporate earnings provided a safety net for investors in the face of turmoil in the U.S. financial market,'' said Phil Chen, who manages $154 million at Grand Cathay Securities Investment Trust Co. in Taipei.

Cnooc Ltd., China's largest offshore oil producer, climbed 4 percent to HK$9.22 in Hong Kong. The company said first-half profit declined 11 percent, less than analysts estimated, as it reined in operating costs.

Net income slid to 14.6 billion yuan ($1.9 billion) from 16.3 billion yuan a year earlier, Cnooc said yesterday, reflecting lower average oil prices. Analysts in a Bloomberg survey had estimated a median 15 percent decline.

Uni-President Enterprises Corp., Taiwan's biggest processed food maker, was headed for a record close, jumping 6.9 percent to NT$36.25. Second-quarter profit more than doubled from a year earlier to NT$2.3 billion ($70 million).

Samsung, Miners

Samsung Electronics, the world's second-largest semiconductor maker, added 2.1 percent to 574,000 won, the most since Aug. 20. Hynix Semiconductor Inc., the second-largest memory-chip maker, climbed 3.4 percent to 33,800 won.

Intel Corp. and Dell Inc. rallied following Seagate's announcement, contributing to a 2.2 percent jump in the U.S. Standard & Poor's 500 Index yesterday. Profit in the three months ending Sept. 28 will be as much as 61 cents a share, compared with a previous projection of as much as 39 cents, Seagate said.

The company also said its first-quarter revenue will be as much as $3.25 billion, up from a previous forecast of up to $3 billion. Earnings growth at technology companies in the S&P 500 next year is expected to be the highest among 10 industry groups, according to a Bloomberg analyst survey compiled on Aug. 24.

BHP, Sony

BHP added 1.6 percent to A$37.65. Rio Tinto Group, the world's third-biggest mining company, gained 1.3 percent to A$91.29. PetroChina Co., China's largest oil producer, climbed 2.2 percent to HK$11.38 in Hong Kong.

A measure of six metals traded on the London Metal Exchange, including copper and nickel, yesterday climbed 0.6 percent. Crude oil in New York climbed 2.5 percent to $73.51, the biggest gain since July 27.

In Japan, Sony, the world's second-largest consumer electronics maker, added 1.3 percent to 5,300 yen, snapping a four-day, 3.5 percent slide. Nintendo, the largest maker of handheld game players, climbed 3.3 percent to 53,200 yen.

The yen weakened 1.7 percent against the dollar to 116.18 in New York yesterday, the biggest fall since January 2005. Versus the euro, the yen slumped 2.3 percent to 158.93, its steepest decline since January 2001. Japan's currency recently changed hands at 115.77 to the dollar and 158.14 versus the euro.

A weaker yen increases the value of Japanese exporters' dollar-denominated sales when converted into local currency.

Equine Influenza

``Seagate's profit announcement was positive,'' said Mitsushige Akino, who oversees $468 million at Ichiyoshi Investment Management Co. in Tokyo. ``That, combined with the weaker yen, makes today a good day to be buying stocks.''

Industrial and Commercial Bank, the world's largest lender by market value, rose 2.9 percent to HK$5 in Hong Kong. The company agreed to buy a controlling stake in Macau's Seng Heng Bank for $582 million, ICBC's second overseas acquisition.

Among decliners today, Australian bookmakers Tabcorp Holdings Ltd. and Tattersall's Ltd. fell on concern Australia's A$15 billion ($12.3 billion) horse-race betting industry is under threat after a thoroughbred contracted equine influenza.

The outbreak was previously only reported in recreational horses. Tabcorp, Australia's biggest betting shop owner, fell 2 percent to A$15.10. Tattersall's, the country's second-largest wagering company, slid 7.1 percent to A$4.55.

Guangdong Midea Electric Appliances Co., China's largest publicly traded appliance maker by market value, slid 4.1 percent to 34.33 yuan. Regulators blocked Goldman Sachs Group Inc.'s plan to buy 10.7 percent of the company, Midea said.