Asian Stocks Pare Weekly Loss on Yen Drop, China Stimulus

Asian stocks rose, paring the benchmark index’s steepest weekly loss in two months, as the weaker yen boosted Japan’s electronics and auto makers and speculation grew China will pass another stimulus package., Bloomberg 1/16/2009 6:03:44 AM

Seiko Epson Corp., the world’s No. 3 maker of inkjet printers, soared 9.9 percent in Tokyo. China’s Shenyang Machine Tool Co. rose 3.8 percent after Shanghai Securities News said the government may extend aid to machinery companies. Chipmaker Hynix Semiconductor Inc. jumped 5.8 percent after market leader Intel Corp. said profitability may improve as customers rebuild inventories. Equities extended gains after the U.S. government increased its rescue package for Bank of America Corp.

The MSCI Asia Pacific Index gained 2.1 percent to 84.84 as of 5:23 p.m. in Tokyo, the sharpest gain since Dec. 17. The gauge, which fell by a record last year as the U.S. housing crisis sparked a global recession, is set for a 5.6 percent drop this week, the most since the period ended Nov. 21.

Japan’s Nikkei 225 Stock Average added 2.6 percent to 8,230.15, leading gains among the region’s markets. All other equity benchmarks rose, except in Pakistan and the Philippines.