Tokyo : Asian stocks rose, driving the MSCI Asia Pacific Index to an eight-week high, as the US Federal Reserve pledged to keep borrowing costs near zero for an "extended period".
LG Electronics Inc., the world's third-largest mobile-phone maker, gained 2.9 per cent in Seoul. Mazda Motor Corp., which gets 21 per cent of its sales in Europe, climbed 2.9 per cent after Standard & Poor's affirmed Greece's credit ratings. Samsung Electronics Co., the largest memory-chip maker globally, advanced 4.3 per cent after Intel Corp's release of a new product stoked optimism demand for chips is improving. Mitsui Mining & Smelting Co. surged 5.8 per cent after boosting its profit forecast and as commodity prices rose.
"It's clear that the Fed is going to keep rates very accommodative to stimulate the growth recovery," said Chris Hall, who helps manage about $3.3 billion (Dh12.13 billion) at Argo Investments in Adelaide. "The million-dollar question is the consumer's ability to step up to the plate to support the economy."
Gains
The MSCI Asia Pacific Index rose 1.5 per cent to 124.76 in Tokyo. Japan's Nikkei 225 Stock Average advanced 1.2 per cent.
Dena Co., a Japanese operator of shopping Web sites, soared 11 per cent after raising its full-year earnings target.
The S&P/ASX 200 Index rose 1.2 per cent in Sydney. The Hang Seng Index jumped 1.7 per cent in Hong Kong, and the Shanghai Composite Index climbed 1.9 per cent. Taiwan's Taiex index rose 2 per cent to close at the highest level since January 25.
South Korea's Kospi index jumped 2.1 per cent, the most since September 10, after sales at the nation's major department stores gained for a 12th month in February. Korea Life Insurance Co., the country's No. 2 insurer, surged 7.9 per cent on its first day of trading in Seoul after completing the nation's biggest initial public offering in four years.
The yen briefly strengthened after the Bank of Japan doubled a three-month loan facility to stimulate credit growth and drag the economy out of deflation. The yen appreciated to as strong as 90.03 per dollar from 90.32 at the 9am open of Tokyo stock trading while gaining against the euro to as much as 124.09 from 124.35.
Futures on the Standard & Poor's 500 Index rose 0.2 per cent. The gauge gained 0.8 per cent on Tuesday to the highest close since October 2008 after the Fed's rate comments.
The Fed has kept the federal funds rate target for overnight loans between banks in a range of zero to 0.25 per cent since December 2008. Policy makers began using the "extended period" language in March 2009 and have repeated it at each meeting since.
The MSCI Asia Pacific Index has gained 9.3 per cent from a more-than-two-month low on February 8 as better-than-estimated US jobs data and a pledge of support from French President Nicolas Sarkozy for debt-stricken Greece bolstered confidence in the global recovery.
