Asian stocks gained for a second day, led by financial companies and technology shares, as governments increase efforts to stimulate their economies. U.S. futures rose. Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, gained 1.2 percent in Tokyo after people familiar with the situation said the U.S. will form an institution to absorb toxic assets. Commonwealth Bank of Australia climbed 6.4 percent as a drop in inflation gave the central bank scope to cut interest rates further. Samsung Electronics Co. rose 11 percent, leading gains among technology shares, as a rival filed for insolvency. “We’re still seeing volatile trades,” said Christian Jin, head of overseas equities at HI Asset Management Co. in Seoul, which oversees $7.2 billion in assets. “On one day, investors look on the bright side, saying we’re going to see a lot more organized policy measures. The next day, they face the grim reality of disappointing corporate earnings.” The MSCI Asia Pacific Index added 0.8 percent to 83.75 as of 7:45 p.m. in Tokyo, with two stocks advancing for each one that declined. A measure of 10-day historical volatility on the gauge yesterday rose to a one-month high amid mounting signs the global recession is hurting company profits. The Nikkei 225 Stock Average gained 0.6 percent to close at 8,106.29. South Korea’s Kospi Index resumed trading after a two- day holiday, climbing 5.9 percent as a central bank gauge of consumer confidence rose from a 10-year low. All other markets open for trading advanced except Thailand, Indonesia and the Philippines. China, Hong Kong and Taiwan remain closed for the Lunar New Year. Falling Valuations Boral Ltd., Australia’s biggest seller of building materials, fell 15 percent after cutting its profit forecast. Glenmark Pharmaceuticals Ltd., an Indian drugmaker, plunged 25 percent after saying it’s unlikely to meet profit targets. Nomura Holdings Inc., Japan’s largest brokerage, lost 2.2 percent on a record quarterly loss. Futures on the Standard & Poor’s 500 Index added 2.2 percent as Yahoo! Inc. reported sales that met analyst targets. The benchmark index rose 1.1 percent yesterday as better-than- expected earnings from companies including Texas Instruments Inc. overshadowed declines in consumer confidence and home prices. Reports yesterday showed that the U.S. Conference Board’s confidence index slid to a record low in January, while the S&P/Case-Shiller index of home prices in 20 U.S. cities plunged 18.2 percent in November. “We probably won’t have clarity on the economic picture for another quarter,” said Robert Horrocks, San-Francisco-based director of research at Matthews International Capital, which manages about $4.7 billion. Bad Bank MSCI’s Asian index has lost 6.5 percent in 2009, extending last year’s record 43 percent tumble as the global credit crisis dragged the world’s biggest economies into recession. The slump has lowered the average valuation of companies on the MSCI gauge by 38 percent in the past year to 10 times reported profit. An index of financial shares on the index is the worst performing of 10 industry groups this year as losses from the crisis swelled to more than $1 trillion and governments including the U.S. and the U.K. bailed out struggling lenders. The U.S. Federal Deposit Insurance Corp. is seeking to manage a so-called bad bank that the government is considering setting up to help unlock credit markets, according to two people familiar with the matter. The institution would buy the toxic assets clogging banks’ balance sheets. Mitsubishi UFJ added 1.2 percent to 503 yen. Mizuho Financial Group Inc., Japan’s second-largest bank, gained 1.3 percent to 233 yen. KB Financial Group Inc., which controls South Korea’s biggest bank, climbed 11 percent to 35,400 won. Lower Interest Rates? Commonwealth Bank, Australia’s biggest mortgage lender, surged 6.4 percent to A$26.31 Australia & New Zealand Banking Group Ltd. rallied 6.5 percent to A$13.21. Speculation the central bank will cut rates increased after government figures showed consumer prices fell by the most in 11 years last quarter. The Reserve Bank of Australia has lowered borrowing costs by 3 percentage points since September and is due to announce its next rate decision on Feb. 3. Investors have a 64 percent expectation the central bank will cut the rate by one percentage point, a Credit Suisse Group index based on swaps trading showed. Samsung surged 11 percent to 488,500 won and Hynix Semiconductor Inc. climbed 15 percent to 8,060 won. The companies, the world’s largest makers of computer memory chips, jumped on analyst expectations an industry glut will ease after Qimonda AG sought protection from creditors after failing to secure financing. “With weak demand, a reduction in supply will be positive for the industry,” Park Young, an analyst at Woori Investment & Securities Co., wrote in a report. “We may begin to see the impact on the memory-chip industry from as early as February.” Nomura, Rio Tinto Boral tumbled 15 percent to A$3.45 after cutting its fiscal 2009 profit forecast by 40 percent. Glenmark slumped 25 percent to 141.35 rupees, the MSCI Asia Pacific’s worst performance today, after saying it’s unlikely to meet full-year sales and profit targets, citing a slowing economic environment. Nomura slipped 2.2 percent to 625 yen in Tokyo after saying it had a 342.9 billion yen ($3.8 billion) loss for the three months ended Dec. 31 and that it won’t pay a dividend for the fourth quarter. Rio Tinto Group, the world’s third-largest mining company, dropped 2.9 percent to A$40.95 after saying it hasn’t ruled out issuing equity as a way of cutting debt.

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