Asian Stocks Rise After Yen Declines, Gold Price Extends Record

Asian stocks rose as the yen weakened against all of its most-traded currencies and after gold prices rose to a record for a second day in New York on demand for the precious metal as a hedge against inflation.

Canon Inc., a manufacturer of cameras that counts Europe and the Americas as its biggest markets, increased 1.5 percent in Tokyo, while Elpida Memory Inc., the world’s No. 3 maker of computer-memory chips, surged 5.8 percent. Toyota Motor Corp., the largest carmaker, gained 1.2 percent. Newcrest Mining Ltd., Australia’s biggest gold producer, added 1 percent in Sydney, while Dart Energy Ltd., a gas explorer, surged 3.9 percent after announcing a “significant resource” at its projects.

The MSCI Asia Pacific Index gained 0.2 percent to 135.35 as of 9:47 a.m. in Tokyo. About two stocks advanced for each that fell in the index. The Asia-Pacific gauge rose for the past two weeks as Japanese companies began resuming production after the nation’s worst earthquake on record last month and as Chinese firms posted profits that beat analyst estimates.

“The yen is likely to continue to weaken,” said Mitsushige Akino, who oversees about $450 million in Tokyo at Ichiyoshi Investment Management Co. “Within the exporters, the electronic companies and precision-equipment makers are likely to be bought following high-tech stocks that were bought in the U.S.”

Japan’s Nikkei 225 Stock Average rallied 0.4 percent. South Korea’s Kopsi Index advanced 0.1 percent. Australia’s S&P/ASX 200 Index was little changed.

U.S. Futures

Futures on the Standard & Poor’s 500 Index fell 0.1 percent today. The index rose 0.2 percent yesterday as Cisco Systems Inc. spurred a technology rally and plans by European lenders to raise capital boosted financial shares.

The yen tumbled against all of its most-traded counterparts tracked by Bloomberg on bets the Bank of Japan will expand economic stimulus as the nation recovers from its worst earthquake on record, and on speculation the European Central Bank will increase borrowing costs.

The yen weakened to as low as 85.50 per dollar today, compared with 85.27 at the close of stock trading in Tokyo yesterday. Against the euro, the yen traded at 122.22 today, from 121.66 yesterday. A weaker yen versus the dollar and euro boosts the value of U.S. and European income at Japanese companies when repatriated.

The London Metal Exchange Index of prices for six industrial metals including copper and aluminum gained 2.1 percent yesterday. Copper futures for May delivery rose the most in two weeks.

Gold rose to as high as $1,463.70 an ounce yesterday on speculation the U.S. will struggle to contain consumer prices. Federal Reserve Chairman Ben S. Bernanke this week said inflation must be watched “extremely closely.”

The MSCI Asia Pacific Index lost 1.9 percent this year through yesterday, compared with gains of 6.2 percent by the S&P 500 and 2.1 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.1 times estimated earnings on average, compared with 13.7 times for the S&P 500 and 11.3 times for the Stoxx 600.