Singapore: Asian stocks rose, with the regional benchmark index recording its biggest weekly gain in almost five months, on optimism that central banks from China to the US will take new steps to fuel growth tempered concerns Europe's debt crisis will worsen.

Li & Fung Ltd, a supplier of toys and clothes to Wal-Mart Stores Inc, jumped 5.9 per cent last week in Hong Kong. Komatsu Ltd, a Japanese construction machinery maker that gets 14 per cent of its revenue from China, gained 2.3 per cent in Tokyo. DeNA Co., Japan's biggest social-gaming operator, surged 23 per cent on a plan to buy back as much as 10 per cent of its stock.

The MSCI Asia Pacific Index rose 2.4 per cent to 114.16 last week, the most in almost five months, before elections last weekend that may determine Greece's future in the euro. The gauge has dropped more than 11 per cent from its peak this year on Feb. 29 amid concern growth is slowing in China and the US and as European policy makers failed to stem concern about the debt crisis.

"There's quite a high chance that the US may do more easing," Terrace Chum, a Hong-Kong based fund manager at Manulife Asset Management, which oversees $220 billion. "People are expecting an interest-rate cut in China. There is expectation that Greece may not part from the European Union. But all these could turn around very quickly."

Gains in stocks were limited on concern about Europe's debt crisis. Spanish bond yields surged the most in four months as the government sought a bailout of 100 billion euros ($125 billion) for its banks. The nation's credit rating was cut three steps to Baa3 by Moody's Investors Service, which cited Spain's increased debt burden, weakening economy and limited access to capital markets.

Stimulus hopes

Companies linked to the US advanced after data on June 14 showed more Americans applied for jobless benefits and consumer prices dropped by the most in three years, giving the Federal Reserve room to spur growth. A policy-setting meeting is scheduled June 19-20.

Li & Fung rallied 5.9 per cent to HK$15.20 last week. Honda Motor Co, a Japanese carmaker that gets more than 40 per cent of its sales in North America, gained 1.7 per cent to 2,533 yen in Tokyo.

The Shanghai Composite Index increased 1.1 per cent last week, after data showed China's consumer prices increased the least in two years in May and industrial output and retail sales trailed estimates, adding pressure for more stimulus after the first interest-rate cut in three years.

Komatsu climbed 2.3 per cent to 1,885 yen last week. Sino-Ocean Land Holdings Ltd, a real estate developer in China, surged 16 per cent to HK$3.75.

DeNA soared 23 per cent to 1,993 yen last week after saying it will spend as much as 20 billion yen ($254 million) buying back up to 10 per cent of its stock.

Gree Inc., DeNA's closest domestic rival, also gained on hopes it may follow DeNA in buying back shares, said Mitsuo Shimizu, an analyst at Iwai Cosmo Securities Co. in Tokyo. Gree jumped 25 per cent to 1,710 yen last week. The two stocks were the biggest gainers on the MSCI Asia Pacific Index's 1,005 companies last week.

Japan's Nikkei 225 Stock Average climbed 1.3 per cent last week, while South Korea's Kospi Index rose 1.2 per cent. Australia's S&P/ASX 200 slid 0.2 per cent.

Energy companies gained the most among the regional equity gauge's 10 industry groups as crude oil for July delivery rose on OPEC's call for members to cut production in excess of quotas. The Organization of Petroleum Exporting Countries needs to reduce output by 1.6 million barrels a day to comply with its targeted ceiling, Secretary General Abdullah Al Badri said.

PetroChina Co, the nation's largest oil company, advanced 4 per cent to HK$10.52 last week in Hong Kong. SK Innovation Co, South Korea's largest refiner, soared 11 per cent to 149,000 won in Seoul.