Asian Stocks Advance After Japan Pension Fund Report

Asian stocks climbed, led by a rally in Japanese shares after a committee advising the ministry that oversees the world’s largest pension fund said it no longer needs to focus on domestic bonds.

Mitsubishi UFJ Financial Group Inc. gained 1.4 percent in Tokyo. Myer Holdings Ltd. (MYR), Australia’s largest department-store operator, advanced 1.3 percent in Sydney after retail sales in January climbed the most in a year. Naver Corp. headed for a record close in Seoul after Daewoo Securities lifted its price target on the Internet company.

The MSCI Asia Pacific Index rose 0.2 percent to 137.85 as of 10:07 a.m. in Tokyo. The 128.6 trillion yen ($1.26 trillion) Government Pension Investment Fund should seek yearly returns of 1.7 percent plus the rate of pay increases for workers, according to a draft report from the committee tasked with helping the health ministry decide on economic assumptions for investment targets.

Japan’s Topix index rose 0.3 percent. New Zealand’s NZX 50 Index advanced 0.5 percent, extending gains from a record high. Australia’s S&P/ASX 200 Index (AS51) declined 0.1 percent, retreating from a 5 1/2-year high. The gauge pared losses of as much as 0.4 percent after retail sales in January beat estimates.

The MSCI Asia Pacific Index climbed 5.7 percent from this year’s lowest level through yesterday, leaving the gauge trading at 12.9 times the estimated earnings of its constituent companies, compared with 15.9 for the Standard & Poor’s 500 Index and 14.6 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Futures on the S&P 500 were little changed after the U.S. equities benchmark fell less than one point to 1,873.81 in New York.

(Source: Bloomberg)