By Patrick Rial and Ian Sayson Dec. 15 (Bloomberg) -- Asian stocks rose as optimism the U.S. will rescue American automakers countered a slump in Japanese business confidence and slowing Chinese industrial output. Toyota Motor Corp. advanced 8.2 percent in Tokyo and Hyundai Motor Co. jumped 5.7 percent in Seoul after the Bush administration said it might finance an industry bailout with funds set aside for banks. BHP Billiton Ltd., the world’s largest mining company, surged 7.2 percent on speculation a rescue will sustain demand for metals. Hanjin Shipping Co. added 12 percent as rates for transporting commodities increased by a record. The MSCI Asia Pacific Index climbed 4.5 percent to 88.16 as of 2:18 p.m. in Tokyo. About 11 stocks gained for each that declined, with all industry groups advancing. The MSCI index has rebounded 17 percent since falling to a five-year low on Oct. 27 as governments took steps to revive their economies. Futures on the Standard & Poor’s 500 Index added 0.4 percent. “A lot of jobs and businesses are riding on the industry’s bailout,” said Jonathan Ravelas, a Manila-based strategist at Banco de Oro Unibank Inc., which has more than $6 billion in trust assets under management. “We have seen confidence slowly creep back.” Daelim Industrial Co. paced gains in South Korea on expectations rate reductions by the central bank will boost construction companies’ access to funds. Japan’s Nikkei 225 Stock Average added 5.3 percent to 8,668, paring its annual loss to 44 percent. Today’s gains were led by Denso Corp. and Aisin Seiki Co., the Japanese auto parts suppliers that sell the most to Detroit carmakers, according to UBS AG. GM, Chrysler President George W. Bush said his administration may tap funding approved to rescue Wall Street firms as part of a plan to help General Motors Corp. and Chrysler LLC. The failure of the Senate to pass a $14 billion aid package sparked a 4.2 percent plunge on MSCI’s Asian index on Dec. 12 and sent the yen to a 13- year high against the dollar. A surging yen and collapsing exports sent the Tankan measure of sentiment among the nation’s largest manufacturers down the most in 34 years, a Bank of Japan quarterly survey showed today. China’s stocks declined after industrial production grew at the weakest pace since Bloomberg began tracking the data in 1999 and money supply expanded at the slowest rate in more than three years. MSCI’s Asian index has tumbled 44 percent this year as the U.S. mortgage crisis toppled banks and sent economies globally into recession. Companies on the measure trade at an average 13 times estimated earnings, almost a third cheaper than at the start of 2008. Toyota, Denso Toyota rose 8.2 percent to 2,985 yen, paring its slump this year to 51 percent. The automaker is likely to report a second- half operating loss of more than $1 billion, the Asahi newspaper reported on Dec. 13. Hyundai, whose biggest overseas market is the U.S., added 5.8 percent to 44,450 won. Denso surged 10 percent to 1,577 yen and Aisin Seiki soared 10 percent to 1,230 yen. BHP gained 7.2 percent to A$30.90. Rio Tinto, the world’s third-biggest mining company, rose 10 percent to A$39.84. Hanjin Shipping surged 12 percent to 20,750 won. Mitsui O.S.K. Lines Ltd., Japan’s second-biggest bulk shipper, jumped 10 percent to 604 yen. China Cosco Holdings Co., the world’s largest operator of iron-ore and coal ships, rose 8.1 percent to HK$5.73. The Baltic Dry Index, a measure of shipping costs for commodities, surged 7.5 percent on Dec. 12, a record advance, amid speculation Chinese steelmakers have been importing more iron ore to take advantage of a collapse in shipping costs. The Baltic has slumped more than 90 percent from a record reached this year. Madoff Involvement Nomura Holdings Inc., Japan’s largest brokerage, added 1.5 percent to 676 yen, less than half the MSCI Asia Pacific Index’s advance, after saying it has 27.5 billion yen ($302 million) linked to investments with Bernard Madoff, the fund manager who was arrested Dec. 11 and charged with defrauding investors of as much as $50 billion. HSBC Holdings Plc, Europe’s largest bank, rose 3.4 percent to HK$85.15 in Hong Kong even after the Financial Times reported the lender had about a $1 billion stake in Madoff’s funds. BOC Hong Kong (Holdings) Ltd., the city’s biggest bank by assets, fell 5.4 percent to HK$8.61 after saying investment losses will lead to the first earnings drop since a 2002 initial share sale. BOC said after the market closed on Dec. 12 that it expects 2008 profit to “decrease considerably” as it writes down the value of its credit investment portfolio. Anhui Conch Cement Co., China’s biggest cement maker, lost 2 percent to 25.30 yuan as industrial production slowed. The State Council said yesterday it will attempt to boost the nation’s money supply by 17 percent in 2009, a move that could revive domestic consumption. Telstra Corp. plunged 8.5 percent to A$3.78 after the government blocked Australia’s largest phone company from plans to build a nationwide high-speed Internet network. Telstra had placed a A$5 billion ($3.3 billion) bid for the project. To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

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