Asian Stocks Snap Six-Day Loss


Asian stocks climbed, snapping a six- day losing streak, on speculation the U.S. Senate will approve a $700 billion bank-rescue plan to revive credit markets and support the global economy.

Westpac Banking Corp., Australia's third-largest bank, rallied 8.2 percent as lawmakers reconsidered opposition to the package that prompted the largest drop in U.S. shares for 21 years. Rio Tinto Group surged 12 percent after Australian regulators said they won't oppose BHP Billiton Ltd.'s takeover. Daikin Industries Ltd. dropped as Japan's manufacturers turned pessimistic on the economy for the first time in five years.

The MSCI Asia Pacific Index
climbed 1.8 percent to 108.91 as of 8:33 p.m. in Tokyo, with financial shares accounting for 38 percent of the advance. The gauge lost 8.6 percent in the previous six days as the failures of Washington Mutual Inc. and Bradford & Bingley Plc, record-high bank borrowing costs, and the rejection of the rescue plan rattled investor confidence.

Japan's Nikkei 225 Stock Average gained 1 percent to 11,368.26. Most markets in Asia rose. China, Hong Kong, Indonesia, the Philippines, Malaysia and Singapore were shut for holidays. Russia's Micex Index added as much as 2.4 percent in Moscow trading.

Indian stocks
advanced for a second day on speculation U.S. lawmakers will approve a $700 billion plan to rescue financial companies and revive credit markets. The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 195.24, or 1.5 percent, to 13,055.67.

Australia's stocks
surged, led by financial companies, on expectations U.S. lawmakers will salvage a $700 billion rescue package for banks. The S&P/ASX 200 Index rose 4.2 percent to 4,794.60 at the close in Sydney, the most in more than a week.

Stocks in Europe Gain. The MSCI World Index added 0.7 percent to 1,191 at 12:53 p.m. in London. Europe's Dow Jones Stoxx 600 Index rose 0.6 percent. The U.K.'s benchmark stock index, the FTSE 100, rose 1.45 percent.

U.S. stock-index futures
fell, signaling the Standard & Poor's 500 Index may pare the biggest rally since 2002, as investors speculated a $700 billion bank- rescue plan from Congress will fail to avert a recession. S&P 500 futures expiring in December lost 9.9, or 0.9 percent, to 1,159.1 at 7:41 a.m. in New York. Dow Jones Industrial Average futures slipped 0.7 percent to 10,787. Nasdaq- 100 Index futures fell 0.7 percent to 1,593.


TradingEconomics.com, Bloomberg.com
10/1/2008 5:20:16 AM