Asian stocks headed for 3rd monthly advance as US sales buoy sentiment

The MSCI Asia Pacific Index climbed 0.3 percent to 129.93 as of 11:19 a.m. in Tokyo.

Asian stocks climbed, with the regional benchmark set for a third monthly increase, as energy companies and exporters rose after a report showed US consumers increased holiday spending, countering lingering concerns Europe’s debt crisis may spread.

Woodside Petroleum Ltd., Australia’s second-biggest oil and gas producer, rose 0.7% in Sydney and rival Santos Ltd gained 1.5% as oil traded near its highest in more than two weeks in New York Li & Fung Ltd, the biggest supplier to retailers such as Wal-Mart Stores Inc, climbed 3.5% in Hong Kong. Hynix Semiconductor Inc., the world’s second- largest computer-memory chipmaker, slumped 4.4% in Seoul after KTB Securities Co. cut its share-price estimate.

“There remain uncertainties about Europe’s debt issues,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “People are worried about other countries, such as Portugal and Spain.”

The MSCI Asia Pacific Index climbed 0.3% to 129.93 as of 11:19 a.m. in Tokyo. About the same number of stocks rose as fell. The gauge has gained 0.4% this month, the third month in a row it has advanced. North Korea’s artillery bombardment of South Korea caused the measure to lose 2.1% last week.

Japan’s Nikkei 225 Stock Average lost 0.4% as a report showed the nation’s unemployment rate climbed. The measure rose 10 percent this month to yesterday, the fastest pace among gauges for the world’s 40 largest equity markets.

Australia’s S&P/ASX 200 Index fell 0.2%, while the Shanghai Composite Index climbed 0.3%. South Korea’s Kospi Index gained 1.1%, rebounding from two straight days of declines in the wake of an artillery attack by North Korea last week.

‘Jitters May Linger’

“Some investors feel relieved that there’re no further provocations by North Korea,” said Seo Jung Ho, a fund manager at UBS Hana Asset Management Co. in Seoul. “Jitters may linger for a while, but there seems to be an increasing perception that this geopolitical issue won’t spread further.”

Futures on the Standard & Poor’s 500 Index were little changed today. The index slid 0.1% yesterday in New York as Ireland’s bailout failed to ease investor concern that Europe’s debt crisis may spread.

Ireland, swamped by the bursting of a decade-long real- estate bubble and unemployment approaching 14%, became the second country to tap European assistance this year, following Greece. Officials meeting last weekend in Brussels agreed to an 85 billion-euro bailout package ($111 billion).

The euro yesterday weakened against 15 of its 16 major counterparts, while the cost of insuring the debt of Spain and Portugal against default soared to records.

Holiday Shoppers

Woodside rose 0.7% to A$42.01. Santos gained 1.5% to A$12.55. Oil traded near its highest in more than two weeks after US consumers spent more over the Thanksgiving weekend than last year, signaling fuel demand may increase in the biggest crude-consuming nation.

Li & Fung climbed 3.5% to HK$49.40 in Hong Kong. Nintendo Co., maker of Wii video game consoles, rose 3.9% to 22,840 yen in Tokyo. Techtronic Industries Co., maker of Ryobi power tools and Hoover vacuum cleaners, added 2.6% to HK$8.44 in Hong Kong.

The average shopper in the US spent 6.4% more over Thanksgiving weekend than last year as more people picked up jewelry and toys, heartened by the economic rebound.

The MSCI Asia Pacific Index has increased 7.6% this year through yesterday, compared with gains of 6.5% for the S&P 500 and 3.3% for the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.3 times estimated earnings on average, compared with 14 times for the S&P 500 and 11.6 times for the Stoxx 600.

Hynix Shares Slide

Hynix slumped 4.2% to 23,750 won in Seoul. KTB Securities Co. cut its share-price estimate to 23,000 won, saying the company will probably post operating losses through the end of next year’s third quarter.

Japanese steelmakers dropped in Tokyo after Mizuho Securities Co. cut investment ratings. Separately, Japan’s unemployment rate in October rose to 5.1% from the previous month’s 5.0%, the statistics bureau said today in Tokyo. The median forecast of 25 economists surveyed by