Advantest, Samsung SDI Earnings May Rekindle Asian Stock Rally
Nov. 2 (Bloomberg) -- Asian stocks may resume their six-month rally as technology companies, including Advantest Corp. and Samsung SDI Co., report higher earnings.
``The industry is showing hard evidence of a recovery,'' said Kenichi Koyama, who helps manage the equivalent of $5.1 billion of assets at Fukoku Capital Management Inc. in Tokyo. ``Earnings are looking good, which will continue to support market sentiment.''
The Morgan Stanley Capital International Asia-Pacific Index, a regional benchmark, has slipped 2.9 percent from its peak on Oct. 21. The retreat followed a 50 percent surge from this year's low, reached on April 28.
Computer-related companies such as LG Electronics Inc., South Korea's second-largest electronics group, led the way as the index recorded its biggest one-day decline in more than two years on Oct. 23. LG reported that third-quarter earnings from mobile phones and home electronics fell.
Last week, a rally by technology stocks helped the MSCI Asia- Pacific recover much of the day's 4.4 percent loss. Reports from companies such as Advantest, the world's biggest producer of memory-chip testing equipment, and Samsung SDI, the No. 2 maker of cathode-ray tube displays for computer monitors and television sets, showed surging profit, rising orders and increasing investment.
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