European stocks climb on positive earnings

European stocks climbed for a second day yesterday as companies including BASF SE and Unilever NV posted results that exceeded analysts’ estimates. US index futures and Asian shares also advanced.

Unilever gained 3.5%, its biggest advance in three months, after reporting quarterly sales that grew faster than analysts had projected. BASF rose 1.9% as profit rose because of increased oil production in Libya. Daimler AG slid 2.9% after the world’s third-largest luxury carmaker abandoned its profit-margin target for 2013.

The Stoxx Europe 600 Index increased 0.6% to 271.12 at 10.54am in London, extending its advance after a report showed the UK moved out of recession in the third quarter. The gauge has still declined 1.1% so far this week as company earnings missed estimates.

The UK’s economy expanded in the third quarter more than predicted, rebounding from a recession. Gross domestic product climbed 1% from the second quarter, when it dropped 0.4%, the Office for National Statistics said.

Japanese stocks gained, with the Nikkei 225 Stock Average rising to a month high, as the yen touched its lowest since June on expectations the Bank of Japan will add stimulus next week.

The Nikkei 225 and the Topix rose 1.1% respectively.

China’s stocks fell, dragging the benchmark index to its lowest level in a week, after a leading gauge for the nation’s economy rose at a slower pace. The Shanghai Composite Index slid 0.7%. About three stocks retreated for each that rose on the measure.

Aluminium stockpiles in the main trading regions in China have climbed to the highest level in two years as growth in supply outpaces demand in the world’s largest user, according to two industry surveys.