Singapore (Bloomberg) Asian stocks fluctuated last week as Japanese and Australian benchmark indexes rose after reports showed better-than-estimated economic growth or employment, while China-related companies fell on concern policy makers will raise interest rates to slow inflation.

Mitsubishi UFJ Financial Group Inc., Japan's biggest publicly traded bank, climbed 4.2 per cent. Westpac Banking Corp., Australia's second-largest bank by market value, gained 2.9 per cent. Industrial and Commercial Bank of China Ltd. (ICBC), the world's biggest bank by market value, declined 2.5 per cent in Hong Kong and Agricultural Bank of China Ltd., the nation's third-largest lender, tumbled 5.1 per cent.

"Markets tend to go hot and cold on expectations that Chinese authorities will take more steps in their tightening campaign," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors Ltd., which manages about $93 billion and is a unit of AMP Ltd., Australia's second-largest asset manager. "There is pressure on interest rates in China, but I don't think there's any reason they'd would want to crush growth."

The MSCI Asia Pacific Index fell 0.3 per cent to 133.09 last week, holding near a one-month high. It jumped 3.5 per cent last week after three straight weekly drops in which it lost 4.4 per cent. The index has rallied about 22 per cent from this year's low on May 25.

Median forecast

Japan's Nikkei 225 Stock Average rose 0.3 per cent last week. Gross domestic product grew at an annualised 4.5 per cent rate in the three months ended September 30, faster than the 3.9 per cent reported last month, the Cabinet Office said December 9. The median forecast of 19 economists surveyed by Bloomberg News was for a 4.1 per cent expansion.

"Investors already knew that higher capital spending in the July-September period would boost Japan's GDP, but they took it as a good direction once the result was disclosed," said Masaru Hamasaki, who helps oversee about $17 billion (Dh62.4 billion) as chief strategist at Toyota Asset Management Co. in Tokyo.

Australia's S&P/ASX 200 Index climbed 0.9 per cent. The number of people employed gained 54,600 from October, the statistics bureau said December 9. That compares with the median forecast for a 20,000 increase in a Bloomberg News survey of 26 economists. The jobless rate fell to 5.2 per cent from 5.4 per cent a month earlier.

Hong Kong's Hang Seng Index retreated 0.7 per cent. China's Shanghai Composite Index fell less than 0.1 per cent. Taiwan's Taiex index rose 1.1 per cent and South Korea's Kospi index rose 1.5 per cent.

Mitsubishi UFJ Financial climbed 4.2 per cent to 419 yen in Tokyo last week. Nippon Steel Corp., Japan's biggest steelmaker, advanced 3.9 per cent to 293 yen. Westpac increased 2.9 per cent to A$22.57 in Sydney, and Commonwealth Bank of Australia gained 2.4 per cent to A$50.59.

Also in Tokyo, Sumco Corp. tumbled 18 per cent to 1,103 yen, last week's biggest percentage drop on the MSCI Asia Pacific Index. The company widened its full-year net-loss forecast and Credit Suisse Group AG cut its rating on the shares to "underperform" from "neutral".

The MSCI Asia Pacific Index has gained about 11 per cent this year as economic data and corporate earnings helped overcome concern that China's steps to curb property prices and Europe's government-debt crisis will hamper a global economic recovery. Stocks on the gauge are valued at about 14.7 times estimated earnings on average, compared with 23 times at the start of the year.

Chinese banks

Chinese developers and banks declined last week after the statistics bureau brought forward the release of economic data, including inflation, by two days to yesterday.

The move signals an interest-rate increase may be imminent, said Glenn Maguire, chief economist for Asia at Paris-based Societe Generale SA.

After yesterday's close of Asian stock trading, China's central bank said it will raise the amount the nation's lenders must hold as reserves by 50 basis points.

Industrial and Commercial Bank of China sank 2.5 per cent to HK$5.83 in Hong Kong. China Resources Land Ltd., a state-controlled developer, dropped 2.6 per cent to HK$13.76, while Agricultural Bank of China tumbled 5.1 per cent to HK$4.06. China Vanke Co., the country's largest publicly traded property developer, slid 4.6 per cent to 8.10 yuan in Shenzhen, China.

China yesterday started the Central Economic Work Conference, a three-day conclave in Beijing.

0.3% drop in MSCI  AsiaPacific Index last week

4.5% Japan's GDP growth in 3 months to September

0.9% rise in Australia'sS&P/ASX 200 Index