Asian Stocks Rebound in U.S.; Banks, Commodity Shares Advance

By Lu Wang

Sept. 30 (Bloomberg) -- Asian stocks trading in the U.S. rebounded from their biggest loss in almost seven years on speculation U.S. lawmakers will pass a $700 billion financial bailout plan to alleviate the global credit crisis.

Mitsubishi UFJ Financial Group Inc. and BHP Billiton led a recovery in financial and commodity shares, lifting the Bank of New York Mellon Asia ADR Price Index 4.7 percent to 122.16. Nikkei 225 Stock Average futures expiring in December were at 11,655 in Chicago, compared with 11,340 in Singapore and 11,320 in Osaka.

The stock benchmark, which tracks the region's American depositary receipts, yesterday slumped 9.4 percent after the House of Representatives voted down the proposal aimed at rescuing the U.S. banking system. The index fell 11 percent this month, the worst since at least December 2001.

President George W. Bush and Senate leaders vowed today to revive the bailout plan. Optimism that the bill will be passed helped send the Standard & Poor's 500 Index to its biggest rally in six years.

Mitsubishi UFJ, Japan's largest lender, climbed 41 cents, or 4.9 percent, to $8.74. Mizuho Financial Group Inc., the second biggest, rallied 62 cents, or 7.7 percent, to $8.72. China Life Insurance Co., the country's largest insurer, surged $4.05, or 7.9 percent, to $55.62.

Energy shares gained as oil rebounded from its biggest drop in seven years. Melbourne-based BHP Billiton, the world's biggest mining company that also produces oil, added $1.49, or 3 percent, to $51.99. PetroChina Co., the country's top energy company, climbed $6.04, or 6.3 percent, to $102.73.

To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net.