Asian Stocks Advance as Money-Market Rates Fall; Toyota Rises

By Patrick Rial

Oct. 17 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index to its first weekly advance since August, on signs governments are succeeding in efforts to unlock credit markets.

Westfield Group, the world's largest shopping-center owner by market value, gained 3.3 percent in Sydney and Toyota Motor Corp. added 3.9 percent in Tokyo after money-market rates dropped and corporate bond risk fell. Singapore and Malaysian governments said yesterday they will guarantee bank deposits, following Hong Kong and three other Asian countries, to shore up confidence in the financial industry.

MSCI Asia added 1.1 percent to 87.85 as of 10:10 a.m. in Tokyo, rebounding from an 8.6 percent plunge yesterday that was the worst decline since the gauge was created in 1987. The index is set for a 2 percent gain this week, snapping a six-week, 31 percent plunge.


Shares on MSCI's Asian index traded at 9.76 times earnings yesterday, near a record low reached last week.

Japan's Nikkei 225 Stock Average climbed 1.3 percent to 8,565.40. All other benchmark indexes in the region advanced apart from South Korea and Taiwan. Standard & Poor's 500 Index futures gained 0.6 percent.

U.S. stocks rose yesterday, with the S&P 500 advancing 4.3 percent after swinging between gains and losses throughout the day. Speculation bond insurers will receive a bailout and a retreat in oil prices fueled gains.

``So are we near the bottom?'' Garry Evans, chief Asian equity strategist at HSBC Holdings Plc wrote in a note to clients. ``Certainly, some of the conditions are in place'' such as low earnings multiples and high dividend yields.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.