June 20 (Bloomberg) -- Asian stocks climbed for a fifth day, led by companies that export to the U.S., after a drop in bond yields eased concern higher interest rates will damp spending in the world's largest economy.
Hon Hai Precision Industry Co. and Nintendo Co. paced gains, helping the Morgan Stanley Capital International Asia-Pacific Index to a new high. Hong Kong's Hang Seng Index and three other benchmarks in the region rose to records, while China and South Korea slid.
``There's some relief from where bond yields were heading a week or more ago,'' said Tom Murphy, who manages about $1 billion in Asian assets at Deutsche Bank AG in Sydney. ``The global economy is still going to remain strong, so you want to be exposed to stocks geared to higher growth, such as exporters.''
PetroChina Co. jumped to a record after the company said it plans to sell stock in Shanghai and as crude-oil prices held near a nine-month high. BHP Billiton Ltd. and Rio Tinto Group shares were dragged lower by a drop in metals prices and speculation they may bid for Canada's Alcan Inc.
The MSCI index gained 0.3 percent to 153.89 as of 7:44 p.m. in Tokyo, set to close at its third straight record. The measure advanced 2.7 percent in the previous four days.
The Nikkei 225 Stock Average rose 0.3 percent to 18,211.68 in Japan, where Deputy Governor Toshiro Muto said the central bank should raise interest rates gradually. Australia's S&P/ASX 200 Index reversed earlier losses after a measure of leading economic indicators rose, suggesting growth will accelerate.
The Taiex index jumped to a seven-year high in Taiwan, where the market was closed for the past two days. Cathay Financial Holding Co. led gains on speculation their insurance operations will benefit from an expected rise in interest rates.
Improved Outlook
U.S. stocks rose yesterday after home construction fell for the first time in four months in May. The 10-year Treasury note's yield, which influences mortgage rates, lost almost 0.15 percentage point over three days on speculation a housing slump will prevent the Federal Reserve from raising borrowing costs. Yields touched their highest in five years last week.
Hon Hai, Taiwan's No. 1 maker of customized electronics, jumped 2.5 percent to NT$288 in Taiwan. Its customers include Cuptertino, California-based Apple Inc. Nintendo, whose Wii video- game console outsells rival products by Sony Corp. and Microsoft Corp. in the U.S., rose 1.4 percent to 44,500 yen. Wipro Ltd., India's third-largest exporter of software services, rose 0.4 percent to 523.45 rupees.
``The outlook for the U.S. economy has improved and I favor blue-chip exporters for the time being,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo.
PetroChina Surges
PetroChina, the country's largest oil producer, surged 5.2 percent to a record HK$11.74 after the company said it's seeking approval to sell as many as 4 billion shares in Shanghai. The sale would raise 43 billion yuan ($5.6 billion), based on its June 18 share price in Hong Kong, whose market was closed yesterday.
Crude oil for July delivery rose 1 cent yesterday to $69.10 a barrel in New York, after earlier reaching $69.56, the highest intraday price since Sept. 1. Futures were recently at $68.90.
Cnooc Ltd., China's largest offshore oil company, added 2.7 percent to HK$9.13 in Hong Kong. The stock was raised to ``outperform'' from ``neutral'' at Credit Suisse Group.
New Shares
Concern that new share sales by PetroChina and other companies will sap funds from existing stocks contributed to a 2.2 percent slump in China's CSI 300 Index.
China Cosco Holdings Co., operator of Asia's largest container line, said today it raised 15 billion yuan ($1.97 billion) selling 1.78 billion domestic shares. China Construction Bank Corp., the nation's No. 3 lender, said last week it may sell 9 billion shares domestically.
``The fast pace of new share sales has dampened sentiment,'' said Wei Wei, an analyst at West China Securities Co. in Shanghai.
China Merchants Bank Co., which has the biggest weighting in the CSI 300, slid 4.5 percent to 23.02 yuan. China Vanke Co., the nation's biggest listed property developer, retreated 3.6 percent to 20.06 yuan.
BHP, the world's largest mining company, fell 1.1 percent to A$34.55, retreating from a record. Rio Tinto, the third largest, slid 0.7 percent to A$100.49. Zinifex Ltd., the world's No. 3 zinc producer, dropped 1.6 percent to A$19.10.
A measure of six metals traded on the London Metal Exchange fell 2 percent yesterday, after sliding 1 percent on June 18. Copper dropped 1.5 percent, nickel tumbled 7.2 percent, while zinc slid 2 percent.
Alcan Bid?
Shares of BHP and Rio Tinto also slid on speculation they may bid for Canada's Alcan.
Alcan, seeking to fend off a $27.7 billion hostile bid from U.S.-based Alcoa Inc., opened a data room to BHP and Rio Tinto, the Sydney Morning Herald reported, without saying where it got the information. A data room allows potential acquirers to gather information that may not be in the public domain.
On June 18, the Times of London said BHP is reviving plans for a $40 billion takeover of U.S.-based Alcoa Inc. Merrill Lynch & Co. has been hired to advise BHP on a possible bid for Montreal- based Alcan, Reuters said the same day.
``Some kind of transaction is very likely in the mining industry,'' said Murphy of Deutsche Bank. ``It's possible that BHP could use its cash position to make a bid, either by itself or through some kind of hybrid with a partner.''
Lifting Profits
Taiwan's Taiex jumped 2.1 percent today, the region's best performance. Nine out of 10 economists surveyed by Bloomberg News expect the island's central bank to raise rates for a 12th quarter tomorrow by 12.50 basis points to 3 percent.
``Higher rates would increase the return on insurers' interest-bearing assets, lifting profits,'' said Vickie Hsieh, who helps oversees $1.4 billion at President Investment Trust Corp.
Cathay Financial, the island's largest life insurer, jumped 6.6 percent to NT$79. Fubon Financial Holding Co., the biggest property insurer, added 4.6 percent to NT$30.80.
Meanwhile, Kookmin Bank surged 3.9 percent to 89,000 won in South Korea. The nation's largest lender has nearly completed negotiations to buy Seoul-based Hannuri Investment & Securities Co. from its U.S. owner, the Maeil Business Newspaper said today, citing securities industry officials it didn't identify.
The bank said it's still looking at options, which include such a buyout.
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