By Kyung Bok Cho and Ian C. Sayson Nov. 21 (Bloomberg) -- Asian stocks rose for the first time in five days, led by finance companies, on speculation governments will step up efforts to revive economies and after the Wall Street Journal reported Citigroup Inc. may be sold. HSBC Holdings Plc gained 4.5 percent after Hong Kong's monetary authority said China branches of the city's banks can receive liquidity from the mainland's central bank. Mizuho Financial Group Inc., Japan's second-largest bank, climbed 10 percent on optimism a merger between Citigroup and a rival will help shore up the financial system. Fortescue Metals Group Ltd. jumped 40 percent after reporting a quarterly ``trading profit'' of A$360 million ($219 million). ``For the global economy, the best stimulus out there is for governments to spend to stimulate their respective economies,'' said Jonathan Ravelas, a strategist at Banco de Oro Unibank Inc. in Manila, which has more than $6 billion in trust assets under management. A Citigroup merger would ``avert a collapse, which the financial system and investors wouldn't want to hear at this stage.'' The MSCI Asia Pacific Index added 2.3 percent to 76.91 at 2:38 p.m. in Tokyo, erasing a 2.3 percent retreat. Finance companies were the biggest contributor to the gain. Today's advance pared the weekly retreat to 7.5 percent. The index has plunged 51 percent in 2008 as global financial companies' losses and writedowns from the collapse of the U.S. subprime-mortgage market neared $1 trillion, eventually toppling Lehman Brothers Holdings Inc. Rallies have fizzled -- most recently a 25 percent gain posted in the seven trading days following Oct. 27 -- as the economies of the U.S., Japan and the euro-zone entered recession. Stimulus Measures Japan's Nikkei 225 Stock Average added 1.6 percent to 7,826.39, with most markets in the region reversing earlier declines. South Korea's Kospi index advanced for the first time in nine days, rising 5.4 percent, while Hong Kong's Hang Seng Index gained 4.5 percent. Futures on the U.S. Standard & Poor's 500 Index advanced 2.1 percent. U.S. stocks tumbled yesterday, with the S&P 500 dropping 6.7 percent to its lowest in 11 years, as economic data pointed to a worsening recession and lawmakers postponed a vote on a plan to salvage the auto industry. HSBC added 4.5 percent to HK$79. China Construction Bank Corp., the nation's second-largest, surged 6.7 percent to HK$3.83 in Hong Kong. China branches of Hong Kong banks can pledge collateral to receive cash from the mainland's central bank if needed, Joseph Yam, Chief Executive of the city's monetary authority, said today. City Developments Ltd., Singapore's second-largest developer by assets, added 3 percent to S$5.48 after the nation said it will extend more loans to local companies. Citigroup Merger? Mizuho Financial Group Inc., which invested in Merrill Lynch & Co. in January, rallied 10 percent to 219,100 yen. Woori Finance Holdings Co., owner of South Korea's second-biggest bank, rose 6.9 percent to 5,400 won. Citigroup, who's shares fell a record 26 percent yesterday, is considering selling off assets or the whole company, the Journal reported. The board of directors will meet later today to discuss options, the newspaper said. Shares of the bank, which reported $20 billion in losses during the last four quarters, have fallen 50 percent this week. Executives at Citigroup aren't actively exploring a sale or breakup of the U.S. bank in response to pressure from shareholders and analysts to boost its share price, the New York Times reported, citing two people with direct knowledge of the discussions. Citigroup spokesman Richard Tesvich wasn't immediately available to comment. To contact the reporters for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net; Ian C. Sayson in Manila at isayson@bloomberg.net.

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