Asian stocks rose, lifting the MSCI Asia Pacific Index to the highest level in 27 months, copper climbed to a record and oil hit a two-year high after Moody’s Investors Service raised China’s debt rating and as Group of 20 leaders meet to keep the economic recovery on track. The MSCI Asian index added 1 percent as of 12:40 p.m. in Tokyo. Copper gained as much as 2.1 percent, platinum advanced for the first time in three days, and crude traded above $88 a barrel in New York. The Australian dollar erased earlier losses after the Moody’s upgrade. Futures on the Standard & Poor’s 500 Index slid 0.2 percent as shares of Cisco Systems Inc. tumbled. While G-20 leaders gather in Seoul amid growing concerns about trade imbalances and currency controls, investors are focusing on signs that China, the engine of world growth, is continuing to improve. Moody’s raised the nation’s foreign and local debt rating to Aa3 from A1, while the government raised bank reserve requirements yesterday and reported that inflation last month was the fastest in two years. “Confidence has swung back to the view that the global economic recovery will continue,” said Shane Oliver, Sydney- based head of investment strategy at AMP Capital Investors Ltd., which manages $85 billion. “Most investors will have a positive view about China’s sovereign risk. China’s still in good shape.” About five stocks gained for every three that retreated on the MSCI index. Japan’s Nikkei 225 Stock Average added 0.3 percent, led by increases of at least 1.8 percent in Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc., after Deutsche Bank AG raised its rating on the nation’s banks. ‘Resilient’ Economy The Shanghai Composite Index climbed 0.6 percent after Moody’s said the Chinese economy’s “resilient performance” and the prospects of “continued strong growth” means the nation will be able to manage and contain losses from record lending. The stock gauge earlier dropped as much as 0.4 percent as a report showed consumer prices rose 4.4 percent in October from a year earlier, more than the 4 percent median forecast in a Bloomberg News survey of 28 economists. Copper for three-month delivery in London touched $8,945 a metric ton, surpassing its previous peak of $8,940 reached in July 2008, as today’s Chinese inflation data prompted investors to seek commodities as a hedge against rising consumer prices. Platinum gained 1.3 percent to $1,761 an ounce, and silver increased 0.9 percent to $27.51 an ounce. Holdings of the two precious metals in exchange-traded products have increased to records. Palladium for immediate delivery added 1.4 percent to $709.75 an ounce, while gold increased to $1,407.40 an ounce. Oil Stockpiles Oil gained for a second day, rising as much as 0.6 percent to $88.35 a barrel in New York. The December contract jumped 1.3 percent to $87.81 yesterday, the highest settlement since Oct. 8, 2008, after the Energy Department said supplies dropped 3.27 million barrels to 364.9 million last week, the biggest decrease since July. Stockpiles were forecast to increase by 1.5 million barrels, according to a Bloomberg News survey of analysts. The Australian dollar was at $1.0064 from $1.0053 yesterday. The currency earlier fell as much as 0.6 percent after an increase in the nation’s unemployment rate overshadowed a gain in jobs. New Zealand’s currency rose against all 16 major counterparts and strengthened to 78.60 U.S. cents from 78.29 cents in New York yesterday. Ahead of the G-20 meeting starting today in Seoul, the yuan rose 0.1 percent to 6.6251 per dollar. The currency earlier reached 6.6173 in Shanghai, the highest since 1993, amid speculation policy makers will accept a stronger currency to curb inflation and meet the demands of trading partners. Defusing Tension G-20 leaders “will be trying to deliver something positive and defuse international tensions, which really came to a head because of the Fed’s asset-purchase programs,” James McCaughan, chief executive officer of Principal Global Investors LLC, said in a Bloomberg Television interview in Hong Kong. “We’re not yet in an era of competitive devaluation and trade protectionism. Markets will want them to keep us out of such an era.” The decline in U.S. stock futures indicates that the S&P 500 may erase yesterday’s gain. Cisco, the world’s largest producer of computer-networking equipment, slumped 13 percent to $21.40 in late trading after saying fiscal second-quarter profit excluding some items will range between 32 cents and 35 cents a share, less than the average analyst estimate of 42 cents, according to data compiled by Bloomberg. Sales will amount to about $10.1 billion to $10.3 billion, while analysts projected $11.1 billion. “Cisco’s forecast is clearly a negative for investors’ sentiment,” said Mark Bronzo, a money manager in Irvington, New York, at Security Global Investors, which oversees $21 billion. “People look at Cisco to get a sense of the overall spending levels in technology. Many technology companies have reported very good numbers. So the question is: Is it a Cisco problem or a problem for all of technology?” The Treasury market is closed today for the Veteran’s Day holiday. U.S. stock exchanges are open. To contact the reporters on this story: Shiyin Chen in Singapore at schen37@bloomberg.net; Anna Kitanaka in Tokyo at akitanaka@bloomberg.net. To contact the editor responsible for this story: Nicolas Johnson at nicojohnson@bloomberg.net

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