Asian Stocks Extend Two-Month Rally on China Manufacturing

Asian stocks rose, extending the MSCI Asia Pacific Index’s two-month rally, as growth in Chinese manufacturing bolstered confidence in the global economy.

BHP Billiton Ltd., the world’s largest mining company, gained 1.2 percent in Sydney as oil and copper prices rose. Cnooc Ltd., China’s biggest offshore oil explorer, climbed 3.2 percent in Hong Kong. Taiwan’s HTC Corp., which makes mobile- phone handsets, rose 7 percent after saying sales may reach a record. Honda Motor Co. sank 4.5 percent in Tokyo after lowering its second-half profit estimate.

The MSCI Asia Pacific Index rose 0.8 percent to 130.44 as of 1:35 p.m. in Tokyo. The gauge reversed losses of as much as 0.2 percent after a report showed China’s manufacturing grew at the fastest pace in six months in October, adding to signs that economic growth is withstanding government efforts to curb property speculation and improve energy efficiency.

“The strong data coming out of China is suggesting the period of economic slowdown is coming to an end,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $135 billion. “That’s very good for Asia, Australia and other countries that rely on China for export growth.”

Copper, Zinc

BHP gained 1.2 percent to A$42.44 inSydney after the manufacturing report from China, the world’s largest user of industrial metals. Zinc, aluminum and lead climbed, while copper advanced from London to Shanghai as investors also sought alternatives to a declining U.S. dollar. In Seoul, Korea Zinc Co., the world’s second-biggest zinc smelter, surged 4.1 percent to 295,000 won.

Cnooc climbed 3.2 percent to HK$16.58 in Hong Kong, while PetroChina Co., Asia’s biggest company by market value, advanced 2 percent to HK$9.65. Crude-oil futures in New York gained as much as 0.7 percent in after-hours trading today.

China Construction Bank Corp. rose 2.7 percent to HK$7.59 after reporting a 31 percent jump in third-quarter net income that was more than analysts estimated.

straight monthly gain, are valued at 14.2 times estimated profit, compared with 14 times for the S&P 500 and 12.2 times for the Stoxx 600.

Honda sank 4.5 percent to 2,805 yen in Tokyo. Japan’s second-largest carmaker expects to earn 92 billion yen ($1.1 billion) in net income in the six months ending March 31, compared with an earlier forecast for 105 billion yen in profit, according to a Bloomberg calculation based on the company’s first-half earnings statement on Oct. 29.

Nomura Holdings Inc., Japan’s biggest brokerage, sank 3.4 percent to 404 yen after its quarterly profit plunged by 96 percent on losses at its overseas operations.