Asian Stocks Rise as U.S. Retail Sales, Metals Prices Climb

June 16 (Bloomberg) -- Asian stocks advanced this week after U.S. retail sales rose more than expected and the Federal Reserve said the world's biggest economy is growing without stoking inflation. Toyota Motor Corp. and Hon Hai Precision Industry Co led gains by exporters.

``A resilient U.S. economy gives consumers a reason to shop and investors an incentive to buy stocks,'' said Barro Liao, who helps manage $2.7 billion at PCA Securities Investment Trust Co. in Taipei.

BHP Billiton Ltd. and Aluminum Corp of China Ltd. led mining shares higher after metals prices climbed. Inpex Holdings Inc., Japan's largest energy explorer, rose as crude oil prices reached a nine-month high.

The Morgan Stanley Capital International Asia-Pacific Index this week added 0.7 percent to 151.58, with energy stocks posting the biggest increase among 10 industry groups included in the benchmark. In Japan, home to Asia's biggest stock market, the Nikkei 225 Stock Average rose 1.1 percent.

China's CSI 300 Index posted its biggest weekly gain in two months as savings rates that trail inflation prompted investors to put more of their savings into equities.

U.S. retail sales rose 1.4 percent in May, more than the 0.6 percent economists expected in a Bloomberg News survey. The Fed, in its so-called Beige Book report, said economic expansion hasn't increased ``overall'' pressures on wages and prices, helping damp speculation that borrowing costs will be raised.

Retail Sales

Toyota, the world's largest automaker by market value, advanced 3 percent to 7,690 yen. The company made 63 percent of its sales outside Japan last business year. Taiwan-based Hon Hai, the biggest contract-electronics manufacturer, climbed 11 percent to NT$281. Its shares also gained after they were rated ``outperform'' in new coverage at Credit Suisse Group.

``Retail sales exceeded forecasts and the Beige Book confirmed the U.S. economy is expanding with little inflation risk,'' said Mitsushige Akino, who oversees $470 million at Ichiyoshi Investment Management Co. in Tokyo. ``These are positive developments for high tech and auto companies.''

BHP, the world's biggest mining company, advanced 3.4 percent to a record A$34. Aluminum Corp., China's largest maker of the metal, surged 28 percent to HK$13.20, after Goldman, Sachs & Co. raised its rating on the stock to ``buy,'' citing soaring demand and prices.

A measure of six metals traded on the London Metal Exchange, including copper and nickel, rose 3 percent. Crude oil prices also advanced 5 percent, posting their biggest weekly gain this quarter and closing at $68 a barrel in New York for the first time since September.

Metals, Oil

Inpex gained 1.8 percent to 1.16 million yen. PetroChina Co., the country's largest oil explorer, advanced 3.1 percent to HK$10.80. Woodside Petroleum Ltd., Australia's No. 2 oil producer, rose 3.8 percent to A$45.

``Globally, economic growth looks strong enough to sustain high levels of demand for commodities so you can expect strength to continue in related stocks for as long as that view holds,'' said Hans Kunnen, who helps manage $107 billion at Colonial First State Global Asset Management in Sydney.

The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, surged 6.8 percent to 4099.38 this week. The benchmark is about 70 points away from its record close on May 29, after tumbling as much as 22 percent from the high following a tripling of stamp duty.

Investors opened 328,624 accounts at brokerages on June 13, the highest daily tally since June 1, and more than 200,000 on each of the previous two days, according to China Securities Depository & Clearing Corp.

`Fresh Liquidity'

Household yuan deposits fell by 278.4 billion yuan ($36.4 billion) in May, after sliding in April for the first time since February 2003, according to the central bank. The CSI 300 has doubled this year, while savings rates offered by banks are capped at the central bank's one-year deposit rate of 3.06 percent -- less than the 3.4 percent inflation rate.

``Fresh liquidity keeps coming into the market and that will continue to push share prices higher,'' said Fan Dizhao, who helps manage about $1.8 billion at Guotai Asset Management Co. in Shanghai.

Daqin Railway, operator of China's biggest coal transport line, surged 20 percent to 17.39 yuan. China Vanke Co., the nations' largest publicly traded real-estate company, gained 6 percent to 15.33 yuan.