By Kyung Bok Cho
Sept. 22 (Bloomberg) -- Asian stocks advanced for the second day after the U.S. government sought unchecked power to buy banks' bad debts, easing concern mortgage losses will drive more companies to failure.
Kookmin Bank gained 4.1 percent after U.S. Democratic lawmakers said they would act quickly on a $700 billion rescue plan for financial companies. Shinhan Financial Group Ltd. gained 3.9 percent after the U.S. Securities and Exchange Commission banned short sales of financial stocks to help stem declines of the kind that triggered the bankruptcy of Lehman Brothers Holdings Inc. and the emergency sale of Merrill Lynch & Co.
``The speed and degree to which the U.S. government has intervened with this buying of nonperforming assets is positive for the market,'' Tomochika Kitaoka, a Tokyo-based strategist at Mizuho Securities Co., said in an interview with Bloomberg Television. ``Value stocks that have been brought down to very cheap levels are going to get a second look today.''
The MSCI Asia Pacific Index added 0.6 percent to 114.85 as of 9:06 a.m. in Tokyo, extending the 5.5 percent gain of Sept. 19. Financial stocks were the biggest contributor to the gains.
The regional measure tumbled early last week to the lowest in three years after Lehman filed for bankruptcy, the U.S. government seized control of American International Group Inc. and Merrill was forced to sell itself to Bank of America Corp.
Japan's Nikkei 225 Stock Average rose 1.2 percent to 12,059.13. Stocks also rose in South Korea, while trading in Australia was delayed for 30 minutes pending a clarifying announcement on short-selling, which was banned following similar moves in the U.S. and U.K.
Since the start of 2007, global financial companies have reported more than $510 billion in credit losses and writedowns linked to the slump in the U.S. housing market and slowing economic growth.
Standard & Poor's 500 Index futures fell 0.8 percent in after-hours trading. U.S. stocks advanced on Sept. 19, with the S&P 500 jumping 4 percent to cap its biggest two-day gain since the aftermath of the 1987 crash.
To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.netMotoko Kakizaki in Tokyo at mkakizaki@bloomberg.net
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