Bloomberg Asian Stocks Climb for Fourth Week in Five on Economic Optimism

Baltic Dry Index [BDIY:IND]
May 29 (Bloomberg) -- Asian stocks rose, capping the longest streak of monthly gains since the credit crisis began in 2007, after India’s economy and Japanese industrial production grew more than estimated, sending commodities prices higher.

Monthly Gain

The Australian benchmark index saw a 1 percent gain this month, while New Zealand’s NZX 50 Index advanced 0.9 percent. Hong Kong and Japanese markets rose for the third-consecutive month.

Economic Recovery?

The rally since March has driven the average valuation of companies on MSCI’s Asian index to 1.4 times the book value of assets, 17 percent higher from at the end of 2008. MSCI’s Asian index climbed 12 percent in May, also its third monthly advance, and the longest winning streak since Bear Stearns Cos. filed for bankruptcy protection in July 2007 for two hedge funds. India’s Unitech Ltd. and Reliance Infrastructure Ltd. surged more than 80 percent this month, leading gains on the gauge amid speculation the prime minister’s election victory will accelerate policies to boost growth.

Copper Gains

Copper futures in New York gained as much as 1.6 percent today after Japan’s Trade Ministry said industrial production advanced 5.2 percent last month from March. Economists had estimated a 3.3 percent increase. Companies said they planned to increase output in May and June as well, the report showed.

U.S. reports this week added to confidence the worst global slowdown since World War II is easing. The Conference Board’s index of consumer confidence showed sentiment surged to the highest since September. Durable goods orders gained 1.9 percent in April, more than some economists expected. Economists also upgraded their forecasts for Chinese economic growth.

The Baltic Dry Index, which measures the cost of shipping commodities, climbed 25.4 percent to its highest level since Sept. 26, 2008. Demand in the second quarter “looks good”. The Baltic Exchange's main sea freight index .BADI., which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser, rose on Thursday to an eight-month high, helped by China's demand for goods.