(Bloomberg, Nov 29, 2006) Asian stocks climbed to a six-month high, led by Toyota Motor Corp. and Hynix Semiconductor Inc., after Japan's industrial production rose to a record and Federal Reserve Chairman Ben S. Bernanke said U.S. growth will pick up next year.

``The biggest economies in the world are still growing, and that's got to be good for everybody,'' said Hans Kunnen, who helps oversee $70 billion at Colonial First State in Sydney. ``There had been so much concern about the U.S. economy dragging down stocks.''

The Morgan Stanley Capital International Asia-Pacific Index rose 1.6 percent to 134.33 as of 4:20 p.m. in Tokyo, set to close at its highest since May 17. All 10 industry groups gained. Japan's Nikkei 225 Stock Average added 1.4 percent to 16,076.20.

Komatsu Ltd., the world's second-biggest maker of earthmoving equipment, climbed after Japan's factory output gained 1.6 percent in October from a month earlier. PetroChina Co. and Woodside Petroleum Ltd. advanced after oil rose to an almost three-week high.

Hong Kong's Hang Seng Index added 0.7 percent after yesterday's biggest point decline since the Sept. 11 terror attacks. Esprit Holdings Ltd. advanced on speculation gains in the euro will boost European revenue. Markets rose around the region, except in the Philippines and Pakistan.

U.S. stocks advanced yesterday in New York after Bernanke said the world's biggest economy will grow at its full capacity in 2007 and a report showed sales of previously owned homes rose in October for the first time in eight months. The U.S. is Asia's biggest export market.

`Wealth Effect'

Toyota, the world's second-largest automobile maker, climbed 1.5 percent to 6,930 yen. Hynix Semiconductor Inc., Asia's second-biggest maker of computer-memory chips, rose 0.7 percent to 35,050 won.

Chartered Semiconductor Manufacturing Ltd., which makes chips that power the Xbox 360 game console, added 1.5 percent to S$1.36. High Tech Computer Corp., the world's largest maker of mobile phones based on Microsoft Corp.'s Windows operating system, gained 2.1 percent to NT$748.

``Bernanke's remarks helped ease concern that U.S. consumers may lose the wealth effect coming from their homes and cut back on spending,'' said Kim Hyung Chan, who manages about $600 million at KTB Asset Management Co. in Seoul.

Honda Motor Co., Japan's No. 3 automaker, added 1 percent to 4,010 yen. The company had 55 percent of its sales in North America last business year. Canon Inc., the world's biggest digital camera maker, gained 1.7 percent to 6,080 yen.

`Good Things'

Komatsu advanced 1 percent to 2,050 yen. Ibiden Co., a maker of printed circuit boards and integrated circuit packages, jumped 1.2 percent to 5,710 yen.

Japan's 1.6 percent factory output gain was led by autos, semiconductors and electronic products. The median forecast of 40 economists surveyed by Bloomberg was for production to drop 0.4 percent. Production climbed 7.4 percent from a year earlier.

``The latest number is a reflection of improving corporate fundamentals in Japan,'' said Robert Rountree, Singapore-based head of investment marketing at Prudential Asset Management, which oversees $55 billion in assets in Asia. ``We can see the underlying trend and all of the good things that should be happening are happening.''

PetroChina, the nation's largest oil company, rose 2.6 percent to HK$9.51. Woodside, Australia's second-largest oil and gas producer, gained 1.2 percent to A$36.52. Inpex Holdings Inc., Japan's biggest oil explorer, climbed 3.8 percent to 981,000 yen.

Crude oil rose 1.1 percent to $61.18 a barrel yesterday in New York, its highest since Nov. 9. Oil was at $61.10 in after- hours electronic trading.

Hong Kong Climbs

Esprit, which sells its own brand of apparel and accessories, jumped 2.5 percent to HK$79.60. The euro rose to $1.3195, from $1.3142 in late Tokyo trading yesterday. It touched $1.3217, the highest intraday level since March 2005. in earlier trading.

The company does about 85 percent of its business in Europe. Every 1 percent increase in the euro boosts earnings by 0.85 percent, Paul McKenzie, an analyst at CLSA Ltd., wrote in a report yesterday.

The Hang Seng dropped 565 points yesterday, the most since Sept. 12, 2001, after Bernanke said U.S. inflation may persist.

Source:Bloomberg