Asian Stocks Surge Higher as Goldman Sachs Raises Toyota to Buy, Kirin Bids For Lion

Stock markets throughout the Asia Pacific region rose for the first time in three days as Goldman Sachs recommended buying shares of Toyota, while Kirin Holdings Co. made a bid for Lion Nathan, Australia’s second-largest brewer. Meanwhile, the Hang Seng Index pushed higher following the news that the Bank of China Hong Kong may get permission to settle trades in Yuan.

[B][U]Asia[/U][/B][B][U] Session Key Developments[/U][/B]

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· [B]Japan’s Kirin makes bid to buyout Australia’s Lion Nathan[/B]

· [B]Goldman Sachs recommends buying shares of Toyota[/B]

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[B]Asian Stocks Surge Higher as Goldman Sachs Raises Toyota to ‘Buy,’ Kirin Bids For Lion Nathan[/B]

Stock markets throughout the Asia Pacific region rose for the first time in three days as Goldman Sachs recommended buying shares of Toyota, while Kirin Holdings Co. made a bid for Lion Nathan, Australia’s second-largest brewer. Meanwhile, the Hang Seng Index pushed higher following the news that the Bank of China Hong Kong may get permission to settle trades in Yuan, which spurred demands for the Chinese banking industry. However, market sentiment weighed lower after Morgan Stanley reported a worse-than-expected first-quarter loss, while Nomura Holdings, Japan’s leading brokerage, reported that the firm has incurred a record net loss of 7000 billion Yen ($7 billion) in the previous fiscal year.

[B]NKY 225 8847.01[/B]

The Nikkei 225 Stock Average rose 119.71 points, or 1.4% to close at 8847.01 in Tokyo, erasing a 0.9% drop after Goldman Sachs Group raised its rating on the nation’s biggest automakers. Toyota Motor Corp. jumped 3.46% while Honda climbed 1.66%, after Goldman Sachs said Japanese carmakers will be able to expand its reach in the U.S. market, while Canon Inc, the world’s biggest maker of digital cameras, advanced 3.1% on speculation that it may post a profit in the first quarter amid the downturn in global trade.

[B]HSI 15214.46[/B]

The Hang Seng Index added 336.01 points, or 2.26% to close at 15214.46 after falling 5.5% over the past two days. Banking shares led the rally as BoC Hong Kong, a unit of Bank of China Ltd., advanced 3.8% while HSBC Holding Plc rose 2.5% following reports that regulators may allow banks in Hong Kong to settle trades in Yuan. Meanwhile, the Industrial and Commercial Bank of China Ltd, added 2.8% after a report said profits at the firm will accelerate this year.

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[B]ASX 200 3743.00[/B]

The Australian stock market snapped a three day losing streak, with the benchmark ASX 200 gaining 74.80 points, or 2.04% to close at 3743.00 on improved volume. A rise in the consumer staples sector contributed to the strength in the market after Japan’s Kirin, who already owns 46.13% of Lion Nathan, Australia’s second-largest brewer, offered to buy the remaining 53.87% in a bid to buy out the Australian unit, while shares of Foster’s, Coca Cola Amatil, and Woolworths advanced 7.2% 5.5% and 2.9%, respectively. Meanwhile, Rio Tinto advanced 6.1% and BHP Billiton gained 3.1%, as Rio’s new Chairman, Jan du Plessis, met with the head of BHP Billiton, which sparked speculation that BHP may make another bid to acquire the world’s third largest mining company.

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[B][U]Notable Asian Session Event Risk / Economic Releases
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