Asian Stocks Climb for First Time in Five Days on Europe Rate Cut, Greece

By Jonathan Burgos - Nov 4, 2011 7:33 AM GMT+0700

Asian stocks advanced for the first time in five days as Greece moved closer to accepting a bailout and the European Central Bank unexpectedly lowered interest rates.

Macquarie Group Ltd. (MQG), the Australian investment bank that gets about 16 percent of revenue from Europe, climbed 2.6 percent in Sydney after Greek Prime Minister George Papandreou scrapped a referendum on the latest bailout package. BHP Billion Ltd., the world’s biggest mining company, jumped 3.6 percent as copper futures rose. Sony Corp., Japan’s largest exporter of consumer electronics, slumped 7.7 percent in Tokyo after predicting a wider full-year loss.

“There’s less risk today because people are little less concerned that Greece will run on its own direction,” Michael Vogelzang, chief investment officer at Boston Advisors LLC, told Bloomberg Television. “It sounds like there is some progress and the markets moved up. We think the ECB moves were helpful. It’s better to aggressively attack these issues than sit idly by.”

The MSCI Asia Pacific Index rose 1.4 percent to 119 as of 9:32 a.m. in Tokyo, snapping four days of losses. The measure is heading for a 4.5 percent decline this week, the most since Sept. 23. Stocks tumbled in the last four days after Papandreou announced on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on Europe’s rescue pact.

Japan’s Nikkei 225 Stock Average gained 1.2 percent as it resumed trading following a holiday yesterday. South Korea’s Kospi Index climbed 2.4 percent. Australia’s S&P/ASX 200 jumped 2.3 percent.

To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.