Asian stocks rose, with the region’s benchmark index set for its best month since 1998, as better- than-expected U.S. economic reports fueled optimism global growth is responding to government stimulus measures. The MSCI Asia Pacific Index rose 1.1 percent to 85.21 as of 1:26 p.m. in Tokyo. The index has rallied 21 percent from a five-year low on March 9 on speculation the worst of the financial crisis is over. A gain of 20 percent is the technical definition of a bull market. Sony Corp., which earns a quarter of its sales from the U.S., surged 6.9 percent in Tokyo after U.S. durable-goods orders rose the most in more than a year. Industrial & Commercial Bank of China Ltd. soared 11 percent as Goldman Sachs Group Inc. agreed to extend a lockup on its shareholding. Elpida Memory Inc., Japan’s biggest maker of computer-memory chips, surged 18 percent on optimism share sales by two units will help the company avoid early repayment of loans. “The stock market has entered a path to recovery,” said Yoshihiro Ito, senior strategist at Tokyo-based Okasan Asset Management Co., which oversees about $9.3 billion. “The better- than-expected U.S. indicators signal the bottoming out of the global economy. Excessive fear of the financial crisis is easing thanks to governments’ policy implementations.” Japan’s Nikkei 225 Stock Average gained 0.8 percent, while Hong Kong’s Hang Seng Index rose 2.3 percent. Australia’s S&P/ASX 200 Index advanced 1.4 percent as the central bank said the country wasn’t at risk of a U.S.-style subprime crisis. All markets advanced except New Zealand. Beating Expectations BHP Billiton Ltd., the world’s largest mining company, added 1.9 percent after UBS AG lifted its profit estimate. Li & Fung Ltd., which supplies clothes and toys to Wal-Mart Stores Inc., fell 4.3 percent in Hong Kong after reporting its first profit decline in seven years. Takeda Pharmaceutical Co. fell 1.4 percent in Tokyo, pacing declines by Japanese companies trading without rights to their latest dividends. Futures on the Standard & Poor’s 500 Index climbed 0.8 percent today. The gauge gained 1 percent yesterday as government reports showed February orders for U.S. durable goods gained the most since December 2007, while sales of new homes increased last month from a record-low pace in January. Economists had expected both figures to decline. The MSCI Asia Pacific Index has jumped 13 percent this month. That’s the biggest monthly advance since October 1998, when governments were cutting interest rates to alleviate the Asian financial crisis. The gains pared the index’s drop this year to 4.9 percent, while the MSCI World Index lost 9.7 percent. Both were set for their sixth-straight quarterly declines. Sony, the world’s second-biggest maker of consumer electronics, climbed 6.9 percent to 2,205 yen. Merrill Lynch & Co. upgraded the stock to “buy” from “neutral,” saying the company’s reorganization would boost earnings. Rising Valuations Canon Inc., the world’s largest camera maker, climbed 3.5 percent to 2,965 yen. Samsung Electronics Co., the world’s biggest maker of computer memory, rose 1.6 percent to 565,000 won in Seoul. “The landslide-like deterioration of the global economy has halted,” Juichi Wako, a strategist at Tokyo-based Nomura Securities Co., said in an interview with Bloomberg Television. “We’ve seen continued resilience in the market.” The rally in stocks has raised the average valuation of companies on the MSCI Asia Pacific Index to 16.4 times profit, the highest level since December 2007, data compiled by Bloomberg show. ICBC, the world’s largest lender by market value, surged 11 percent to HK$3.98. Goldman Sachs committed to hold 80 percent of its almost 16.5 billion shares in ICBC until April 2010 under a new agreement, ICBC said yesterday. Goldman Sachs subsequently added the stock to its Asia Pacific “conviction buy” list. Higher Estimates Credit Suisse Group also upgraded the stock to “outperform” from “neutral,” while UBS AG and Morgan Stanley lifted their share-price estimates. Elpida soared 18 percent to 657 yen. The company said two subsidiaries plan to raise 45.8 billion yen ($469 million) by selling new stock. The share sale will help Elpida bolster its net assets above the level at which banks have the right to demand early repayment of loans. BHP rose 1.9 percent to A$33.90. UBS analysts increased their full-year profit estimate for next year by 15 percent because of a predicted rise in coal prices, according to a report yesterday. Li & Fung Ltd. sank 4.3 percent to HK$18.66. The company posted a 21 percent decline in 2008 net income to HK$2.42 billion ($312 million) yesterday, missing the HK$3.1 billion average estimate of analysts. Takeda, Asia’s biggest drugmaker, dropped 1.4 percent to 3,630 yen. Tokyo Electric Power Co., Japan’s largest power company, lost 1.7 percent to 2,545 yen. More than 2,800 Japanese companies trade without rights to a dividend today.

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