Asian Stocks Pare U.S. Data-Driven Advance as Moody¡¯s Plans Europe Reviews

Asian stocks (MXAP) pared gains as Italyand France prepared to sell debt and Moody��s Investors Servicereiterated it plans to review the credit ratings of Europeannations even after an agreement to tighten fiscal controls inthe region and boost a bailout fund.

The Hang Seng Index fell 0.1 percent, reversing an advanceof as much as 1.8 percent. Esprit Holdings Ltd. (330), the Hong Kong-based clothier that counts Europe as its biggest market, slipped1.7 percent, reversing an advance of as much as 2.2 percent.James Hardie Industries SE (JHX), the building materials suppliersthat counts the U.S. as its biggest market, gained 2.2 percent.

��The European situation will continue to bother us intonext year as policy initiatives seem insufficient,�� said Mark Matthews, Singapore-based head of research for Asia at BankJulius Baer & Co., which has about $180 billion globally. ��U.S.economic data is improving quite nicely and that��s one of thefew bright spots in the world.��

The MSCI Asia Pacific Index gained 0.5 percent to 115.66 asof 7:28 p.m. in Tokyo, paring a gain of as much as 1.4 percent.About two shares rose for each that fell in the measure. Thegauge dropped 2.2 percent last week after Standard & Poor��s saidit may cut credit ratings for Germany, France and 13 other euro-area countries amid a deepening debt crisis.

Japan��s Nikkei 225 Stock Average (NKY) increased 1.4 percent ledby Olympus Corp., the endoscope maker at the center of anaccounting scandal. The company��s shares jumped 7.8 percentafter saying it will meet a Dec. 14 deadline to submit itsaccounts to avoid delisting.

South Korea��s Kospi Index gained 1.3 percent. Australia��sS&P/ASX 200 index added 1.2 percent. China��s Shanghai CompositeIndex declined 1 percent.

��Very Cautious��

Futures on the Standard & Poor��s 500 Index (SPXL1) fell 1 percenttoday. The index rose 1.7 percent in New York on Dec. 9 afterEuropean leaders in Brussels tightened anti-deficit rules andagreed to ! boost th eir rescue fund by as much as 200 billioneuros ($267 billion) by funneling money to the InternationalMonetary Fund.

Europe��s leaders outlined a ��fiscal compact�� to preventfuture debt run-ups and accelerated the start of a planned 500billion-euro rescue fund.

��Of course people are getting relief from the Europetalks, but people probably don��t think they still have any long-term solution,�� said Alex Wong, an asset-management director atAmple Capital Ltd. in Hong Kong. ��People are very cautious.��

Esprit fell 1.7 percent to HK$10.58 in Hong Kong, aftergaining as much as 2.2 percent. Hutchison Whampoa Ltd. (13), aretailer and port operator that gets more than half of revenuefrom Europe, dropped 0.5 percent to HK$65.70, erasing an earlieradvance of up to 2 percent.

U.S. Confidence

Shares of exporters gained as confidence improved amongconsumers in the U.S., the world��s biggest economy. The ThomsonReuters/University of Michigan preliminary index of consumersentiment rose to a six-month high of 67.7 in December from 64.1in November, beating estimates.

James Hardie advanced 2.2 percent to A$6.89 in Sydney.Canon Inc., the world��s biggest camera maker, rose 1.6 percentto 3,500 yen in Tokyo. Sony Corp. (6758), Japan��s largest exporter ofconsumer electronics, added 1.3 percent to 1,423 yen.

Samsung Electronics climbed 2.9 percent to 1.084 millionwon in Seoul. The company said yesterday its mobile-phonehandset sales this year reached a record of 300 million units.Technology companies had the biggest advance among the 10industries on the MSCI gauge.

Biggest Advance

Olympus Corp. (7733), the scandal-hit maker of cameras andendoscopes, jumped 7.8 percent to 1,300 yen in Tokyo, the mostin the MSCI Asia Pacific Index. The company said it plans torelease earnings by the Dec. 14 deadline, allowing it to avoidautomatic delisting.

The MSCI Asia Pacific Index declined 16 percent this yearthrough last week, compared with a 0.2 percent drop by the ! S&P5 00 and a 13 percent loss by the Stoxx Europe 600 Index. Stocksin the Asian benchmark are valued at 12.7 times estimatedearnings on average, compared with 12.7 times for the S&P 500and 10.6 times for the Stoxx 600.