Nov. 18 (Bloomberg) -- Asian stocks rose, with the region’s main benchmark gauge rebounding from a four-day slide, on speculation that concern over China’s anti-inflation policies may have been overdone. Cnooc Ltd., China’s biggest offshore oil producer, surged 3.8 percent in Hong Kong after commodity prices climbed as concern over tougher so-called tightening measures eased. BHP Billiton Ltd., the world’s largest mining company, gained 0.8 percent in Sydney. David Jones Ltd., Australia’s No. 2 department store operator, rose 4 percent after reaffirming its profit guidance. Showa Denko K.K., which makes ceramics and electronic materials, climbed 6.3 percent in Tokyo after UBS AG raised its investment rating to “buy.” The MSCI Asia Pacific Index advanced 1.4 percent to 131.65 as of 3:46 p.m. in Tokyo, with more than three times as many stocks rising as falling. The gauge is rebounding after concern over how China will tackle the fastest inflation in two years triggered a global stock rout that has wiped about $1.8 trillion off equity markets since Nov. 11. “It seems China’s focus is more on specific administrative controls rather than on broad-based measures,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages about $85 billion. “If they’re specifically targeting sectors where there a problem, investors will be a little less worried that it’s going to crunch the whole economy. That’s what giving the market a bit of a bounce.” ‘Daily Necessities’ Japan’s Nikkei 225 Stock Average gained 2.1 percent, its steepest advance since Nov. 5, with exporters rising as Ireland also signaled talks with international institutions over its debt crisis. Australia’s S&P/ASX 200 Index rose 0.3 percent. Hong Kong’s Hang Seng Index climbed 1.6 percent after China said it may impose price controls if prices of “important daily necessities” surge too much. The Shanghai Composite Index rose 0.8 percent. Futures on the Standard & Poor’s 500 Index advanced 0.9 percent. The index was little changed yesterday in New York, while most stocks advanced as earnings at Target Corp., an operator of general merchandise discount stores and speculation Ireland will receive aid offset concern technology spending is slowing. The MSCI Asia Pacific Index increased 7.8 percent this year to yesterday, compared with gains of 5.7 percent by the S&P 500 and 5.3 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 14.4 times estimated earnings on average, compared with 13.9 times for the S&P 500 and 12 times for the Stoxx 600. Oil, Metals Cnooc rose 3.8 percent to HK$17.10 in Hong Kong. Jiangxi Copper Co., the country’s top producer of the metal, jumped 5 percent to HK$23. BHP Billiton climbed 0.8 percent to A$43.80 in Sydney, while Rio Tinto Group, the world’s third-biggest mining company, gained 0.9 percent to A$84.40. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum rose 0.9 percent yesterday, while copper futures for March delivery jumped as much as 1.2 percent today. Crude oil for December delivery rebounded from a four-week low to gain as much as 1.3 percent in trading today. China’s cabinet confirmed yesterday evening that the government may impose price controls on basic needs and production materials. Price caps will be used if necessary, the State Council said in a statement yesterday after a meeting chaired by Premier Wen Jiabao. ‘Relief Rally’ “The market is relieved that the government has taken a gradual and softer approach,” said Khiem Do, head of multi- asset strategy at Baring Asset Management (Asia) Ltd. “That’s why there’s a relief rally.” David Jones rose 4 percent to A$4.67 in Sydney. The company reported first-quarter sales of A$466.6 million ($458 million) and confirmed a fiscal-year 2011 profit target of between 5 percent and 10 percent growth. Sonic Healthcare Ltd., Australia’s biggest provider of medical tests, surged 5 percent to A$11.25. The Sydney-based company said that net income will climb by 5 percent to 15 percent in the year ending June 30. Global Recovery “The confirmation of guidance by companies is a reminder we are in a global economic recovery and companies are able to grow their earnings in spite of some of the fears that are out there at the moment,” said Will Seddon, who helps manage about $350 million at White Funds Management Pty. in Sydney. Mirvac Group gained 1.6 percent to A$1.265 in Sydney. The real-estate investment trust was raised to “outperform” from “neutral” at Credit Suisse Group AG. Virgin Blue Holdings Ltd., Australia’s second-biggest airline, surged 3.5 percent to 45 Australian cents after its stock rating was raised to “buy” from “hold” at Royal Bank of Scotland Group Plc. Showa Denko K.K. leapt 6.3 percent to 168 yen in Tokyo after its stock rating was raised to “buy” from “neutral” by Shohei Takahashi, a Tokyo-based analyst at UBS. Also in Tokyo, Canon Inc., a camera maker that gets 30 percent of its revenue from Europe climbed 1.3 percent to 4,015 yen as the euro advanced against the Japanese currency, potentially boosting the value of overseas sales for exporters. Citizen Holdings Co., a watchmaker that earns more than 12 percent of its sales in Europe, gained 1.2 percent to 520 yen. The euro advanced to 113.16 yen as of 12:33 p.m. in Tokyo from 112.66 at yesterday’s close of stock trading. The Irish government will hold talks with the European Union, International Monetary Fund and the European Central Bank “over a number of days,” a Finance Ministry spokesman said yesterday, easing concern Ireland’s debt crisis will spread. Esprit Holdings Ltd., a fashion retailer that gets most of its sales in Europe, advanced 0.9 percent to HK$40.65 in Hong Kong. --Editor: Nick Gentle, John McCluskey. To contact the reporter for this story: Shani Raja in Sydney at sraja4@bloomberg.net. To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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