Asian stocks gain on Japanese bank ratings and metal prices

Tokyo: Asian stocks climbed for a second day as JPMorgan Chase & Co. boosted ratings on Japan's largest banks and as mining companies climbed on higher metal prices.

Mitsubishi UFJ Financial Group and Mizuho Financial Group advanced more than 1.5 per cent in Tokyo. Jiangxi Copper surged 5.8 per cent in Hong Kong as copper prices jumped after an earthquake in Chile cut supplies from the world's top producer of the metal. Taiwan Semiconductor Manufacturing rose 1.4 per cent in Taipei on speculation China will agree to tax breaks for Taiwanese companies.

Lagging

"Bank shares have lagged behind the market, so they should rise," said Yoshihiro Ito, a senior strategist at Tokyo-based Okasan Asset Management, which oversees about $8.2 billion. "Risk money is flowing into commodities such as crude oil and nonferrous metals after the earthquake."

The MSCI Asia Pacific Index gained 0.8 per cent to 119.02 as of 5.35pm in Tokyo, with more than three stocks advancing for each that declined.

The gauge has lost 1.2 per cent this year on speculation central banks will start withdrawing stimulus measures and that Greece will struggle to curb its deficit.

Japan's Nikkei 225 Stock Average gained 0.5 per cent to 10,172.06. The Taiex index advanced 1.9 per cent in Taipei. The Shanghai Composite Index rose 1.2 per cent.

Hong Kong's Hang Seng Index gained 2.2 per cent, the biggest advance among benchmark indexes in the Asia-Pacific region. Sinofert Holdings, China's largest fertiliser importer, surged 7.6 per cent to HK$4.68 in Hong Kong after Morgan Stanley raised its share-price forecast to HK$5.30 from HK$4.30.

Australia's S&P/ASX 200 Index climbed 1.1 per cent after a report by Australian Industry Group and PricewaterhouseCoopers showed manufacturing expanded at the fastest pace since 2007. Toll Holdings, Australia's largest trucking and freight company, climbed 6.6 per cent to A$7.25. Brambles, the world's biggest supplier of pallets, rose 2.5 per cent to A$7.11.

Futures on the Standard & Poor's 500 Index advanced 0.6 per cent. The gauge rose 0.1 per cent on February 26 in New York after reports showed the US economy expanded at a 5.9 per cent annual rate in the fourth quarter, more than the government had reported in January. The Institute for Supply Management-Chicago Inc. said its business barometer climbed to 62.6 from 61.5 in January, a bigger increase than economists forecast and the highest level since 2005.