By Patrick Chu and Shani Raja Dec. 24 (Bloomberg) -- Asian stocks surged, lifted by gains in oil, metals and computer memory chips, on speculation that demand for the commodities will strengthen in China and the U.S. The MSCI Asia Pacific Index climbed 1.2 percent to 119.98 as of 1:20 p.m. in Tokyo, the third increase in as many days. The Standard & Poor’s 500 Index rose 0.2 percent to close at 1,120.59 in New York. Crude oil for February delivery climbed as much as 54 cents, or 0.7 percent, to $77.21 a barrel in electronic trading in New York. Copper futures in Shanghai gained as much as 1.5 percent to $8,264 a metric ton, the highest price since September 2008. Oil gained 3.1 percent yesterday after the U.S. Energy Department said supplies had their biggest drop since September. Copper and aluminum advanced after China said yesterday economic growth in the fourth quarter will exceed the 8.9 percent in the past three months. The Dramexchange Index, which tracks prices of the most widely used computer-memory chips, jumped 2.3 percent in Taiwan yesterday, to the highest level in six weeks. “We’re encouraged by the fact that the global economy is continuing to improve,” said Angus Gluskie, who oversees $300 million at White Funds Management Pty in Sydney. “The economic fundamentals moving into 2010 are likely to be better than they have been in the last six months.” Oil rose for a third day in New York after a government report showed a larger-than-expected decline in U.S. stockpiles. Oil may reach $90 a barrel in 2010, driven by Chinese demand, Nick Raffan, an analyst at Fat Prophets, said in an interview today in Sydney. “China’s growth rates are startling,” he said. Oil Stockpiles Drop U.S. crude oil inventories fell 4.84 million barrels to 327.5 million last week. Stockpiles were forecast to decline 1.6 million barrels, according to a Bloomberg News survey. “These numbers took analysts by surprise,” said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida. “We are now set to march up to the $80 level. It looks like the consumer is coming back even if the economic growth isn’t as strong as people wanted.” Copper for three-month delivery on the London Metal Exchange gained 0.4 percent to $7,026.75 a ton, extending yesterday’s 1.7 percent advance. Aluminum added 0.4 percent to $2,264 a ton. The London Metals Index, a measure of six metals, gained 1.8 percent yesterday, the most in a week. Growth Forecasts China’s economic growth in the fourth quarter will exceed the 8.9 percent of the preceding three months, Xu Xianchun, deputy head of the National Bureau of Statistics, said yesterday. The world’s third-biggest economy is targeting 8 percent growth in 2010 amid a “fragile” global recovery, industry minister Li Yizhong said this week. India’s economy is “well positioned” to accelerate to 9 percent growth rate a year, Planning Commission Deputy Chairman Montek Singh Ahluwalia said in New Delhi yesterday. “Economic data seems to be improving and this is driving the positive sentiment in the market,” Song Libo, research manager at Capital Futures Co., said from Beijing. “The market still faces downside risk as stockpiles build, however the anticipation is that these will be absorbed by a recovery in demand next year.” The MSCI Asia Pacific Index’s 33 percent surge this year has outpaced gains of 24 percent by the U.S. S&P 500 and 27 percent for Europe’s Dow Jones Stoxx 600 Index. Stocks in the MSCI gauge are valued at an average of 22.5 times estimated earnings, compared with 18.1 times for the S&P 500. Metals Companies Mitsubishi Corp., Japan’s biggest commodities trading house which generates more than half its profit from raw materials, climbed 3.9 percent in Tokyo. BHP Billiton Ltd., the world’s largest mining company, rose 1.5 percent in Sydney. Jianxi Copper Co. and Zijin Mining Group Co., China’s biggest producers of copper and gold, climbed at least 1.5 percent. In South Korea, Posco, the nation’s biggest steelmaker, added 1.8 percent to a two-year high, while Korea Zinc Co., which gets a quarter of its sales from gold and silver, rose 3.4 percent, the most in two weeks. “Profit at metals companies are expected to be strong next year as rising demand will boost prices,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai. Japan’s Nikkei 225 Stock Average added 1.2 percent. Japanese markets were closed yesterday for a holiday. South Korea’s Kospi Index rose 1 percent. Advantest Corp., the world’s No. 1 maker of memory-chip testers, climbed 3.4 percent to 2,415 yen. Tokyo Electron Ltd., the world’s second-biggest maker of equipment to manufacture semiconductors, advanced 3.5 percent to 5,930 yen. Elpida Memory Inc. climbed 3 percent to 1,429 yen. Yen at 8-Week Low Canon gained 6.1 percent to 4,020 yen. The world’s largest camera maker said it plans to leave its annual dividend at 110 yen a share, and obtained European Union regulatory clearance for its acquisition of the Dutch office equipment maker OCE NV. The yen traded near the weakest level in eight weeks on prospects the Bank of Japan may prolong credit easing to fend off deflation. Japan’s currency fell against 11 of its 16 most-traded counterparts, trading as weak as 91.75 to the dollar. It was at 91.87 yen in the past two days, the lowest level since Oct. 27. The yen traded as low as 131.49 to the euro from 131.38 in New York yesterday. The dollar fell to as weak as $1.4345 to the euro from $1.4337, retreating from the more than three-month high of $1.4218 reached on Dec. 22. Emerging Markets South Korea’s won led the region’s emerging-market currencies higher after an unexpected drop in U.S. new home sales cooled demand for the dollar. ICE’s Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, yesterday fell for the first time in seven days. “It’s really a good opportunity, almost an excuse, to take profits on the long dollar positions built up in the last six sessions or so,” said Vishnu Varathan, a regional economist at Forecast Singapore Pte. “It does not really mark a distinct end to the dollar-bounce trend, more like a reaction to data and an exaggerated move.” The won climbed 0.8 percent to 1,174.65 in Seoul, wiping out losses earlier in the week, according to data compiled by Bloomberg. The Dollar Index slid 0.1 percent, after yesterday dropping 0.4 percent. Taiwan’s dollar rose 0.2 percent to NT$32.301, its biggest gain this month, after the government yesterday reported a 37 percent jump in November’s export orders from a year earlier. The island’s central bank will today keep its benchmark interest rate at a record-low 1.25 percent for a third straight quarter, according to all economists surveyed by Bloomberg. Treasuries were little changed, heading for a weekly drop, as traders prepared for sales of $118 billion in notes next week and before reports forecast to show improvement in U.S. purchases and employment. Orders for goods meant to last several years increased 0.5 percent in November, after falling 0.6 percent in the previous month, according to the median estimate of 72 economists in a Bloomberg survey. The Commerce Department report is due today. Another report is forecast by economists to show initial jobless claims fell to 470,000 last week from 480,000 in the previous seven days. Applications have held below 500,000 since the third week of November, the best performance in a year.

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