Asian stocks rose, driving a regional benchmark index to a 2 1/2-year high, as U.S. earnings beat analyst estimates and amid speculation that China’s steps to slow inflation won’t curb its economic expansion. Samsung Electronics Co., the world’s biggest maker of televisions, climbed 2.9 percent in Seoul. Canon Inc., a Japanese camera maker that gets about 80 percent of its revenue abroad, gained 0.4 percent. Komatsu Ltd., a Japanese maker of earthmoving machines that earns about 19 percent of its revenue from China, rose 2.1 percent, while BHP Billiton Ltd., the world’s largest mining company, advanced 0.9 percent in Sydney after metal prices rallied. The MSCI Asia Pacific Index climbed 1.1 percent to 140.49 as of 4:11 p.m. in Tokyo after Apple Inc. and International Business Machines Corp. reported earnings that exceeded analysts’ estimates, and as speculation mounted that China will tomorrow report gross domestic product growth of more than 9 percent. The gauge is set to close at its highest level since June 19, 2008. “The earnings recovery in the U.S. has been exceptional post-crisis,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management in Sydney. “It seems the recovery in the U.S. economy is starting to broaden, which will support revenue and earnings growth. China’s economy is robust, but it’ll take at least six months of strong data to silence those calling a policy-induced hard landing.” Quarterly Earnings Two stocks rose for each that fell on the Asia-Pacific index, with material, energy and technology companies advancing the most among the 10 industry groups that it tracks. Of the 22 companies represented on the gauge that have reported net income for the latest quarter, 11 have exceeded analyst estimates while eight have missed them, according to data compiled by Bloomberg. Japan’s Nikkei 225 Stock Average gained 0.4 percent. South Korea’s Kospi Index climbed 0.9 percent, Australia’s S&P/ASX 200 Index increased 0.7 percent, and Hong Kong’s Hang Seng Index added 0.8 percent. Futures on the Standard & Poor’s 500 Index were little changed today. The U.S. stock index rose 0.1 percent yesterday in New York, extending a seven-week rally, as gains in commodity producers and a pledge by European finance chiefs to support the region overshadowed lower-than-estimated profit at Citigroup Inc. IBM, the world’s largest computer-services provider, posted fourth-quarter profit and sales that topped analysts’ estimates as companies spent more on computer systems and software. The shares climbed in late trading. Apple Exceeds Estimates After the close of regular New York trading, Apple, whose Chief Executive Officer Steve Jobs is taking medical leave, reported quarterly net income of $6.43 a share, compared with $5.41 a share estimated on average by analysts surveyed by Bloomberg. Samsung and Hynix Semiconductor Inc., the world’s two largest makers of the chips, climbed in Seoul trading. Samsung gained 2.9 percent to 997,000 won and Hynix rose 0.7 percent to 27,850 won. Canon gained 0.4 percent to 4,195 yen in Tokyo. Honda Motor Co., which gets about 43 percent of its revenue from North America, climbed 0.2 percent to 3,325 yen. “The U.S. market is still the bellwether in the world,” said Jason Teh, who helps manage about $3.1 billion at Investors Mutual Ltd. in Sydney. “A recovering U.S. economy is good for the world given that the nation is the world’s largest consumer.” Komatsu, the world’s second-largest maker of construction and mining equipment, rose 2.1 percent to 2,562 yen in Tokyo. Hitachi Construction Machinery Co., the world’s biggest maker of giant excavators, advanced 0.9 percent to 2,038 yen. China Growth Government reports tomorrow will probably show inflation in China cooled to 4.6 percent in December while the economy likely expanded 9.4 percent in the fourth quarter, according to the median estimates of economists surveyed by Bloomberg News. BHP Billiton, which counts China as its largest market, rose 0.9 percent to A$46.05 in Sydney after a measure of metals traded in London rose 0.5 percent yesterday and copper futures for March delivery climbed 0.4 percent in New York. Rio Tinto Group, the world’s third-biggest mining company, gained 0.9 percent to A$87.62. Korea Zinc Co., the world’s biggest producer of refined zinc, surged 5.1 percent to 319,500 won in Seoul. In Hong Kong, China Construction Bank Corp., the nation’s second-largest lender advanced 0.7 percent to HK$7.17 and smaller rival Bank of China Ltd. gained 1.7 percent to HK$4.31. China Shipping Container Lines Co., the nation’s No. 2 carrier of sea-cargo boxes, climbed 3.1 percent to HK$3.94 before trading in its shares was suspended pending an earnings statement. The company late yesterday said 2010 profit was “better than expected” following a recovery in the global industry. ‘Outlook Clearing’ The MSCI Asia Pacific Index rose 14.3 percent last year, compared with gains of 12.8 percent by the S&P 500 and 8.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 14.3 times estimated earnings on average at the last close, compared with 13.6 times for the S&P 500 and 11.3 times for the Stoxx 600. “Following macro improvements in the U.S. economy, micro factors such as an earnings recovery are beginning to show,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. “The opaque outlook for the economy is starting to clear.” To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net. To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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