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TOKYO - Asian stocks rose for the fourth consecutive week, their longest winning streak in four months, as company earnings reports boosted confidence in the strength of the global economy.
Canon Inc, the world's largest camera maker, jumped 9.3 percent last week in Tokyo after reporting profit that beat analyst estimates. Sony Corp, the maker of Bravia televisions, gained 7.6 percent in Tokyo after raising its annual forecasts. HSBC Holdings Plc, Europe's largest bank, climbed 3.7 percent in Hong Kong after most European banks passed stress tests. Sanyo Electric Co soared 21 percent after receiving a takeover bid.
The MSCI Asia Pacific Index rose 1.4 percent last week to 119.11 and climbed 5.6 percent this month, its first monthly increase since April and the biggest gain since March. The index has slumped about 8 percent from its high this year on April 15 on concern China's measures to limit property-price inflation and Europe's government debt would stall global growth.
"People are buying on optimism the global economy is on an uptrend after seeing those positive earnings reports," said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co, which oversees about $104 billion.
Japan's Nikkei 225 Stock Average gained 1.1 percent last week, even as industrial production unexpectedly dropped and unemployment climbed. Hong Kong's Hang Seng Index rose 1 percent. China's Shanghai Composite Index advanced 2.6 percent after the central bank said it would keep a "moderately loose" monetary policy.
Cheapest since 2008
Speculation economic growth may falter dragged down the MSCI Asia Pacific Index by as much as 9.6 percent this year, and the average price of stocks in the gauge dropped this month to the lowest level since December 2008. The index's companies trade at about 14 times estimated profit.
Baoshan Steel & Steel Co, the listed unit of China's second-biggest steelmaker, advanced 4.1 percent to 6.55 yuan in Shanghai last week after the National Bureau of Statistics said on July 28 profits of Chinese industrial companies in 24 regions jumped 72 percent to 1.61 trillion yuan in the first half of 2010 from a year earlier.
Bloomberg News
