By Yoshiaki Nohara - Oct 28, 2011 7:18 AM GMT+0700
Asian stocks rose, sending a benchmark index toward its biggest weekly gain since May 2009, as the fastest U.S. economic growth in a year boosted the earnings outlook for Asian exporters after Europe announced measures to contain the region’s debt crisis.
Honda Motor Co., Japan’s second-largest carmaker by market value that gets 83 percent of its revenue abroad, rose 3.1 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, advanced 2.6 percent. BHP Billiton Ltd. (BHP), Australia’s No. 1 mining company, jumped 2.1 percent after metal and crude prices increased.
Fears of a U.S. recession are fading, according toTim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “It’s not an economic scenario at this stage that the U.S. will go into a recession,” he said. “The market has been pricing in less macro-economic risks as a result of what happened over the last 24 hours.”
The MSCI Asia Pacific Index rose 1.3 percent to 124.49 as of 9:13 a.m. in Tokyo. The measure has gained 7.3 percent this week, the most since the week ended May 8, 2009.
Japan’s Nikkei 225 Stock Average added 1.6 percent and South Korea’s Kospi Index advanced 1.8 percent. Australia’s S&P/ASX 200 gained 1.3 percent. Futures on the Standard & Poor’s 500 Index were little changed.
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
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