By Shani Raja Dec. 26 (Bloomberg) -- Asian stocks advanced this week for the first time in three weeks, led by technology companies and commodity producers on optimism the global economic recovery is strengthening. Inotera Memories Inc. surged 23 percent in Taipei as prices for dynamic-random-access-memory chips climbed to a one-month high. Canon Inc., the world’s biggest camera maker, gained 5.6 percent in Tokyo after keeping its dividend unchanged and winning approval for a takeover. BHP Billiton Ltd., the world’s largest mining company and Australia’s top oil producer, gained 4.6 percent in Sydney as prices for crude and metals increased after reports showed U.S. consumer spending and incomes climbed. “The recent data indicate the global economy is recovering faster than originally expected,” said Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management in Sydney. “It’s too early to say whether the recovery is self- sustaining, but we should know toward the end of first quarter 2010.” The MSCI Asia Pacific Index rose 1.7 percent to 119.56 this holiday-shortened week. Technology and materials stocks had the steepest gains among the index’s 10 industry groups. Japan’s Nikkei 225 Stock Average added 3.5 percent this week, Hong Kong’s Hang Seng Index climbed 1.6 percent and the Shanghai Composite Index in China gained 0.9 percent. Japan’s markets were closed on Dec. 23 for a holiday, and most other bourses were shut Dec. 25 for Christmas. Most Since 2003 The MSCI gauge has climbed 34 percent this year, set for its biggest annual gain since 2003, on signs government spending and lower interest rates are bolstering economies. Stocks in the benchmark trade at 23 times estimated earnings, compared with 18 times for the Standard and Poor’s 500 Index in the U.S. and 16 times for the Dow Jones Stoxx 600 Index in Europe. Inotera Memories surged 23 percent to NT$25.30 in Taipei, the highest since May 2008. Elpida Memory Inc., Japan’s biggest maker of memory chips, climbed 12 percent. Tokyo Electron Ltd., the world’s second-biggest maker of equipment to manufacture semiconductors, advanced 9.3 percent to 5,880 yen. Prices for dynamic-random-access-memory chips jumped 8.2 percent in Taiwan this week to the highest level since Nov. 18, according to Dramexchange Technology Inc., the operator of Asia’s biggest spot market for semiconductors. “People are starting to change their outlook on the semiconductor industry,” said Takeshi Osawa, a senior fund manager in Tokyo at Norinchukin Zenkyoren Asset Management Co. “Concerns that production will slow down are easing off.” Canon, Commodities Gain Canon gained 5.6 percent to 3,950 yen this week after leaving its annual dividend at 110 yen a share and obtaining European Union regulatory clearance for its acquisition of the Dutch office equipment maker OCE NV. BHP Billiton added 4.6 percent to A$42.47 in Sydney, its steepest weekly gain since July. Mitsubishi Corp., Japan’s biggest trading company and which generates more than half its profit from raw materials, rose 6.1 percent. Inpex Corp., the country’s biggest oil explorer, advanced every day that markets were open this week, gaining 5.5 percent. Primary metals traded on the London Metal Exchange rose 3.1 percent this week, and crude oil for February delivery gained 6.4 percent in New York. American consumers’ spending and incomes climbed in November, figures from the Commerce Department showed on Dec. 23, indicating the biggest part of the economy is poised to strengthen as the labor market recovers. Japan’s exports fell at the slowest pace since September 2008 in November as demand from Asia supported the nation’s recovery from its worst postwar recession, the Finance Ministry said on Dec. 21. “Investors are cautiously optimistic heading into 2010,” said Cameron Peacock, a market analyst at IG Markets in Melbourne. “There seems to be a general view that the economic recovery is still on track. To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net.

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