Asian Stocks Advance, Led by Electronics Companies, Automakers

By Chua Kong Ho and Shiyin Chen

Jan. 31 (Bloomberg) -- Asian stocks rose, led by electronics companies and carmakers, after Seiko Epson Corp. and Daihatsu Motor Co. posted higher profits.

Seiko Epson, the world's third-largest maker of inkjet printers, surged the most in three years. Daihatsu, Japan's biggest minicar maker, had its steepest advance in five months. Hyundai Heavy Industries Co. rebounded from its worst plunge since Sept. 12, 2001, on speculation the sell-off was excessive.

``Our strategy is to stay defensive and pick up selective shares that look cheap and whose earnings look resilient,'' said Teo Chon Kiat, who helps manage the equivalent of $16 billion at DBS Asset Management in Singapore. ``Investors are still concerned about a slowdown in the U.S. and the impact on export growth in the region.''

The MSCI Asia Pacific Index gained 0.7 percent to 142.16 at 11:49 a.m. in Tokyo, reversing an earlier loss of 0.6 percent. The measure is headed for its worst month since September 2001. Eight of the benchmark's 10 industry groups rose today.

Japan's Nikkei 225 Stock Average added 0.6 percent to 13,417.98. South Korea's Kospi Index climbed 0.8 percent.

The Standard & Poor's 500 Index retreated 0.5 percent yesterday in the U.S., after the Federal Reserve reduced its benchmark rate to 3 percent from 3.5 percent to help the economy avert a recession.

Terumo Corp., a Japanese medical-equipment maker, surged the most in six months after the company posted a profit gain and Merrill Lynch & Co. recommended investors buy the stock. Yahoo Japan Corp., which operates the country's most visited Web site, jumped 11 percent after saying third-quarter earnings increased on online advertisement sales.

Canon Inc., the world's largest camera maker, tumbled the most in more than five months after its profit forecast missed analyst estimates. The stock was the single biggest contributor to declines in the Nikkei 225 index.