By Chua Kong Ho and Ian C. Sayson Dec. 8 (Bloomberg) -- Asian stocks and U.S. futures rose after U.S. President-elect Barack Obama pledged the biggest public works program in about 50 years and India lowered interest rates. Komatsu Ltd., the world’s No. 2 maker of construction machinery, jumped 9.8 percent after Obama said he’s planning the largest spending package since President Dwight D. Eisenhower created the interstate highway system. India’s Sensitive Index gained 4.3 percent as the government unveiled a $4 billion stimulus plan. Hong Kong Exchanges & Clearing Ltd. surged 17 percent after the financial secretary said a plan permitting Chinese to buy the city’s shares is still on track. “Governments, not only the U.S., must spend to replace the growth that will be lost from weak consumer spending,” said Jonathan Ravelas, a strategist at Banco de Oro Unibank Inc. in Manila, which has more than $6 billion in trust assets under management. “Investors have been waiting for this kind of stimulus to cushion the effects of a global slowdown.” The MSCI Asia Pacific Index gained 4.2 percent to 82.85 as of 1:45 p.m. in Tokyo. About 14 stocks rose for each that declined. The MSCI measure fell 3.8 percent last week as commodity prices slumped amid signs the global recession is deepening. The gauge is valued at 12 times estimated profit, almost a third below its level at the start of 2008. Japan’s Nikkei 225 Stock Average advanced 2.6 percent to 8,120.71. Mizuho Financial Group Inc. rose after loan growth at the country’s banks accelerated in November as the global credit crisis shut companies out from the bond market. Government Support Measures Hong Kong’s Hang Seng Index surged 7.5 percent. Australia’s S&P/ASX 200 Index jumped 4.5 percent, led by Santos Ltd., the country’s third-biggest oil and gas producer, amid takeover speculation. South Korea’s Kospi Index climbed 7 percent. Most markets open for trading in the region advanced, with Singapore, Indonesia and Malaysia closed for public holidays. Governments worldwide have introduced measures this year to buttress their economies against the worst financial crisis since the Great Depression. The Reserve Bank of India on Dec. 6 reduced its repurchase rate to 6.5 percent from 7.5 percent on Dec. 6. Chinese leaders are holding their annual economic conference in Beijing from today. Futures on the Standard & Poor’s 500 Index climbed 1.9 percent today. The stock gauge climbed 3.7 percent on Dec. 5 as insurer Hartford Financial Services Group Inc. increased its profit forecast and said it’s weathering the credit turmoil. U.S. Stimulus Komatsu, which counts the Americas as its biggest overseas market, jumped 9.8 percent to 996 yen, snapping a five-day, 21 percent decline. James Hardie Industries NV, the biggest seller of home siding in the U.S., rallied 4.4 percent to A$4.31. Westfield Group, the shopping center owner that derived 39 percent of its 2007 sales from the U.S., climbed 5.1 percent to A$13.89. Obama said on Dec. 6 will boost investment in roads, bridges and public buildings to create and preserve 2.5 million jobs. U.S. companies cut payrolls at the fastest pace in 34 years, with the unemployment rate rising to the highest level since 1993, reports last week showed. “At the moment governments are the only ones feeding cash into the system,” said Masaru Hamasaki, who helps oversee about $3.3 billion at Toyota Asset Management Co. in Tokyo. “It’s a fair bet to say the policies of the U.S. will support demand.” In Japan, Mizuho Financial added 3.6 percent to 218,200 yen. Sumitomo Mitsui Financial Group Inc. gained 4.1 percent to 308,000 yen. Loans, excluding those by credit associations, rose 3.6 percent in November from a year earlier after growing 2.3 percent in October, the Bank of Japan said today. China Banks Lenders also advanced as the cost to protect Australian and Japanese bonds against default declined. Commonwealth Bank of Australia climbed 7.1 percent to A$33.08. National Australia Bank Ltd. added 6.3 percent to A$21.06. The Markit iTraxx Japan index fell 3 basis points to 370 in Tokyo, according to prices from Credit Suisse Group. The Markit iTraxx Australia index was quoted 10 basis points lower at 390 basis points, Citigroup Inc. data show. A hundred basis points make up one percentage point. Australia’s government will start making one-time payments to families and pensioners as part of its A$10.4 billion ($6.8 billion) stimulus package from today, ministers said. Chinese banks advanced after the China Securities Journal reported on Dec. 5 that the government is considering cutting the business tax imposed on banks’ revenue to 3 percent from the current 5 percent. Industrial & Commercial Bank of China Ltd., the nation’s largest bank, climbed 7.9 percent to HK$4.39 in Hong Kong. China Construction Bank Corp., the No. 2 lender, added 8.6 percent to HK$4.79, while Bank of China Ltd. rose 6.4 percent to HK$2.50. Santos, Woodside Santos gained 11 percent to A$13.49, snapping a five-day losing streak. China National Petroleum Corp., the parent of Hong Kong-listed PetroChina Co., is considering linking with a partner to bid for Santos, the South China Morning Post reported. Woodside Petroleum Ltd. advanced 10 percent to A$33.51 in Sydney. Oil climbed for the first time in seven days, adding 4 percent to $42.14 a barrel, after the president of the Organization of Petroleum Exporting Countries said there was consensus for a production cut. Aeon Co., Japan’s largest supermarket operator, jumped 6.2 percent to 879 yen, the most since Nov. 10. Mitsubishi Corp., Japan’s biggest trading house, will purchase a stake of about 5 percent in Aeon and form an alliance to buy and distribute goods and open stores, two people familiar with the matter said Dec. 6. To contact the reporter for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net; Ian C. Sayson in Manila at isayson@bloomberg.net.

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