Asia stocks rose to a two-week high, led by emerging markets, copper gained and the yen weakened as concern about the global recovery receded. The won strengthened after South Korea unexpectedly raised interest rates. The MSCI Asia Pacific Index climbed 0.9 percent to 116.20 at 4:06 p.m. in Tokyo and MSCI’s emerging markets gauge rose 1 percent. The Stoxx Europe 600 increased 0.6 percent. Standard & Poor’s 500 futures were little changed after the benchmark gained for three straight days. Copper rose as much as 1.7 percent. The won climbed against all 16 of the most-traded currencies, including a 1.3 percent gain against the yen. Central banks in South Korea, Malaysia, Taiwan and India raised rates in the past 15 days, signaling Europe’s debt crisis won’t derail economic growth. European Central Bank President Jean-Claude Trichet said yesterday that the recovery is gaining momentum and the International Monetary Fund raised its estimate for global growth this year. Reports today are forecast to show Italian and French manufacturing expanded. “Interest rate increases by some countries in Asia reflect their confidence in the economic outlook,” said Kim Yong Tae, who helps manage the equivalent of $2.9 billion at Yurie Asset Management Co. in Seoul. “If there are signs that the European sovereign debt crisis will be resolved there will be a domino effect for emerging economies to normalize interest rates.” About two stocks rose for every one that fell in the MSCI Asia Pacific Index, which headed for its biggest weekly advance since Dec. 4. Hong Kong’s Hang Seng Index surged 1.5 percent. The Shanghai Composite surged 2.7 percent, the most in nearly three weeks. Equity Movers Samsung Electronics Co., which makes smartphones based on Google Inc.’s Android software, gained 2.7 percent. Google increased its smartphone market share in the U.S. by 4 percentage points to 13 percent in the three months ended in May, Comscore Inc. said. Santos Ltd. jumped 9.7 percent after Australian newspapers reported Royal Dutch Shell Plc may buy a stake in one of its gas projects. The MSCI Emerging Markets Index rose 1.1 percent to 951.78, poised for a 4 percent gain this week, its first advance in three weeks. Global and Asian emerging-market stock funds took net inflows as investors bought more shares in Taiwan and India in the week ended July 7 even as they pulled $11.25 billion from equity funds worldwide, EPFR Global said in a report today. Global funds attracted $518 million and those investing in Asia excluding Japan drew $124 million as Taiwan funds had their second-best week this year, according to EPFR. Won Strengthens The won rose 1.1 percent to 1,195.85 per dollar after Bank of Korea Governor Kim Choong Soo boosted the seven-day repurchase rate to 2.25 percent from a record low 2 percent. Problems in some advanced economies don’t pose a big threat, Kim said at a press briefing after the increase, which was forecast by four of 14 economists surveyed by Bloomberg News. The yen fell against all 16 of its most-traded counterparts and weakened 0.3 percent against the dollar as investors bought higher-yielding assets. The yen fell 0.2 percent against euro. Italian industrial output rose 0.8 percent in May, a third- straight monthly gain, and French manufacturing grew 0.5 percent in the same month, as a weaker euro boosted exports, according to Bloomberg News surveys of economists before reports today. Copper in London climbed for the fifth time in six sessions and is set for a weekly gain as dwindling inventories signaled steady demand. Copper for three-month delivery gained 1.4 percent to $6,710 a metric ton on the London Metal Exchange. Oil rose for a third day, gaining 0.6 percent to $75.88 a barrel in New York. Crude headed for its biggest weekly gain in six, after U.S. inventories fell the most since September amid disruption to Gulf of Mexico output caused by Hurricane Alex. To contact the reporters on this story: Will McSheehy in Singapore at wmcsheehy@bloomberg.net Saeromi Shin in Seoul at sshin15@bloomberg.net

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