Asian Stocks Join Global Rally as Nations Work to Ease Crisis

By Kyung Bok Cho and Masaki Kondo

Oct. 29 (Bloomberg) -- Asian stocks gained, building on a global rally, amid speculation Japan will cut rates and China will take steps to boost its markets, joining governments around the world in efforts to revive confidence in financial markets.

Seven & I Holdings Co. and Sony Corp. climbed more than 4 percent after the Nikkei English News said the Bank of Japan may cut interest rates to 0.25 percent. BHP Billiton Ltd. advanced after prices for metals and oil gained on speculation an economic recovery will increase demand for resources. The Dow Jones Industrial Average jumped 11 percent yesterday, helped by speculation the Federal Reserve will cut rates later today.

The MSCI Asia Pacific Index added 2.2 percent to 79.48 as of 9:23 a.m. in Tokyo, extending yesterday's 3.4 percent rise. The Nikkei 225 Stock Average added 6.3 percent to 8,099.36, while the Korea Exchange halted program trading after index futures surged.

MSCI's Asian index has lost 50 percent this year and the Nikkei tumbled to a 26-year low earlier this week on concern the widening financial crisis and slowing economic growth will hurt company profits. MSCI's Asian measure now trades at 1.1 times book value, compared with the S&P 500's 1.8 times.

The BOJ is considering lowering its benchmark rate by a quarter percentage point, the Nikkei English News reported. In the U.S., the Federal Reserve will announce its decision as early as today on interest rates.

China's insurance commission asked the heads of the nation's largest government-controlled insurers to help stabilize the stock market, the Financial Times reported. Separately, the nation plans to delay the start of margin lending and short selling, originally scheduled to begin next month, on concern they will aggravate volatility, the South China Morning Post said.

BHP, the world's biggest mining company and Australia's largest oil producer, climbed 4 percent to A$26.38.

The London Metal Exchange LMEX Index, a gauge of six metals, climbed for a second day, adding 3.7 percent yesterday. Crude oil rose 4.6 percent to $65.63 a barrel in after-hours trading.

To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.netMasaki Kondo in Tokyo at mkondo3@bloomberg.net.