Asian Stocks Advance: Japan's Toyota, Samsung Elec

Tokyo, Jan. 6 (Bloomberg) -- Asian stocks rose, led by Toyota Motor Corp., Samsung Electronics Co. and other companies that rely on U.S. sales, on optimism President George W. Bush's stimulus plan will boost growth and spur demand in the world's largest economy.

Canon Inc. had its biggest gain in almost two weeks as a senior U.S. administration official said Bush's proposal, to be announced tomorrow, may be twice as large as initially discussed, costing as much as $600 billion over the next decade.

``Bush may reveal further economic stimulus measures that could improve overall market sentiment,'' said Takehiko Takachio, a senior fund manager at Kokusai Asset Management Co., which handles about $3.9 billion in Japanese securities. He's buying shares of companies that depend on U.S. demand such as Funai Electric Co., Shin-Etsu Chemical Co. and Nissan Motor Co.

Japan's Nikkei 225 Stock Average climbed 1.6 percent in its first day of trading this year to 8713.33, at the 11 a.m. close in Tokyo. The Topix index climbed 2 percent to 860.07, its biggest gain since Nov. 28. All of the Topix's 33 industry sub-groups advanced. The market was opened for a half-day.

Elsewhere in Asia, Taiwan's TWSE Index advanced to almost a one-month high. Formosa Plastics Corp. gained after surging oil costs prompted plastics makers to increase chemical prices.

In South Korea, the Kospi index climbed 0.9 percent, while exporters in Hong Kong including Johnson Electric Holdings Ltd. helped pace the Hang Seng Index's 0.7 percent advance. Benchmarks around the region gained, except for indexes in Indonesia, Malaysia and Singapore, which dropped.

Bush's Plan

Toyota, which gets as much as 70 percent of its operating profit from North America, added 1.9 percent to 3,250 yen. It was the most active stock by value. Canon rallied 2.9 percent to 4,600 yen. The maker of Ixy cameras gets 70 percent of its revenue from overseas.

Bush's plan, which lawmakers said likely will include income tax cuts and business incentives, is intended to boost the U.S. economy, which probably slowed to a 1.4 percent annualized growth rate in the fourth quarter of 2002 from 4 percent in the third quarter.

``The prospect of additional U.S. tax cuts makes investors more optimistic about buying exporters,'' said Kiyohide Nagata, a senior fund manager at Prudential Asset Management Co., which handles $1.2 billion in Japanese equities.

Sony Corp. rose 1.4 percent to 5,030 yen. The maker of Cyber- shot digital cameras relies on the U.S. for a third of its sales. Nissan, Japan's third-largest automaker and affiliate of French carmaker Renault SA, added 2.1 percent to 945 yen.

Rising Crude Oil

The TWSE advanced 1.4 percent to 4689.86, its highest since Dec. 11. Formosa Plastics, the island's largest producer of chemicals such as ethylene used to make plastic, rose 1.5 percent to NT$47.90. Nan Ya Plastics Corp., the island's largest plastics maker, rallied 3.2 percent to NT$32.

``Chemical prices are up because of the strong oil price,'' said Chu Yen-min, a chemicals analyst at Yuanta Core Pacific Securities Co. ``While oil prices remain high, it'll be difficult for chemical prices to fall back dramatically.''

The Northeast Asia price of ethylene rose 4.6 percent to $460 a ton in the week ending Jan. 3, according to ICIS-LOR, a chemicals-market information provider.

On Jan. 3, crude oil for February delivery rose 3.9 percent to $33.08 on the New York Mercantile Exchange, its highest closing price since Nov. 30, 2000.

`Big Help'

The Kospi added 5.61 to 666.71, advancing for the third day. Samsung Electronics, the nation's top exporter, climbed 1.6 percent to 349,500 won. Trigem Computer Inc., the world's third- largest maker of personal computers by volume, rallied 3.5 percent to 8,180 won.

Bush's plan ``will be a big help for exporters,'' said Kim Joo Hyoung, who manages $250 million at Macquarie-IMM Investment Management Co. including shares of Samsung Electronics and Hyundai Motor Co.

The Hang Seng rose 71.01 to 9654.86. Johnson Electric, which derives a third of its sales from North America, advanced 1.1 percent to HK$9. Li & Fung Ltd., which buys garments in Asia for customers in the U.S., added 0.6 percent to HK$7.85.

Bush's plan ``can help to counter deflationary pressure by giving more money for consumers to spend,'' said Nelson Lee, who helps manage $2.3 billion at BNP Asset Management Asia in Hong Kong. ``That will benefit the Hong Kong exporters.''