Asian Stocks Advance, Led by Honda and Sony on Tankan Survey - Bloomberg

Asian stocks climbed, led by Honda Motor Co. and Sony Corp., after a survey showing Japan's largest companies may increase capital spending this year stoked optimism about corporate profits.

The Bank of Japan's quarterly Tankan survey of business confidence showed large manufacturers in Asia's biggest economy plan to raise spending on factories and equipment by a bigger- than-forecast 2.9 percent this fiscal year.

``Planned capital spending that exceeded forecasts and business sentiment which was roughly in line with the market consensus eased investors' concern they need to change their strategy,'' said Koji Uchida, who helps manage $61 billion at Mitsubishi UFJ Asset Management Co. in Tokyo.

The Morgan Stanley Capital International Asia-Pacific Index climbed 0.5 percent to 145.36 as of 12:15 p.m. in Tokyo. Japan's Nikkei 225 Stock Average advanced 0.5 percent to 17,377.17, while the broader Topix index added 0.2 percent.

Benchmarks elsewhere in the region rose, except in Australia. Woolworths Ltd. and Westpac Banking Corp. fell as a surge in retail sales and home-building approvals fueled expectations the central bank may raise interest rates this week.

China's CSI 300 Index gained, set for a record close. Steelmakers rose after Baoshan Iron & Steel Co. reported a 77 percent increase in fourth-quarter profit. Automakers such as Hyundai Motor Co. led South Korea's Kospi index higher on speculation a free-trade accord with the U.S., which may be reached today, will boost car exports.