Asian stocks rose for a second day as oil climbed after the U.S., U.K. and France launched airstrikes in Libya, Japan made progress in tackling a nuclear crisis, and amid signs a U.S. economic recovery is strengthening. Woodside Petroleum Ltd. (WPL) climbed 1.8 percent in Sydney as U.S. officials said allied forces grounded Libyan leader Muammar Qaddafi’s air force and drove back his offensive against a rebel stronghold. LG Electronics Inc., the world’s third-largest mobile-phone maker, gained 1.5 percent in Seoul as the Federal Reserve cleared the way for lenders to boost dividends. Extract Resources Ltd. led gains among uranium companies in Sydney. The MSCI Asia Pacific excluding Japan Index climbed 1.5 percent to 459.32 as of 6:46 p.m. in Hong Kong. More than three stocks rose for each that fell on the gauge, which lost 5.5 percent this year through March 18. Japanese markets are closed for a public holiday today. “Investors are gaining confidence that despite all the event risk that markets have been exposed to in the last eight weeks or so, recovery in global growth will remain fairly solid,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd. in Sydney. “As an investor, you can deal with the downside from natural disasters and wars a lot better if there is some comfort that the economic fundamentals will remain protected.” The MSCI Asia Pacific Index, which includes Japanese companies, last week recorded its biggest weekly drop since the height of the European debt crisis last May as Japan fought to prevent a nuclear disaster precipitated by the nation’s worst earthquake on March 11. Fed Allows Dividends Australia’s S&P/ASX 200 Index gained 0.4 percent in Sydney. New Zealand’s NZX 50 Index (NZSE50FG) rose 0.3 percent in Wellington. South Korea’s Kospi Index climbed 1.1 percent, and Hong Kong’s Hang Seng Index also added 1.7 percent. Futures on the Nikkei 225 Stock Average expiring in June rose 3.5 percent and 3.1 percent in Singapore and Chicago respectively. U.S. Standard & Poor’s 500 Index futures rose 1.2 percent. The gauge advanced 0.4 percent to 1,279.21 on March 18, paring a weekly decline, after the Fed move, and as central banks worked to support Japan’s economy following the earthquake. The S&P 500 Financials Index gained 1.1 percent, the biggest rally among 10 industries, as the Fed said some of the 19 largest U.S. banks will be able to restart dividend payments, buy back shares or repay government capital after “significant improvement” in their capital positions and the economy. ‘Enemy Christian States’ Woodside, Australia’s second-biggest oil and gas producer, rose 1.8 percent to A$45.20 in Sydney. Rival Santos Ltd. (STO) advanced 1.1 percent to A$15.22. China Shenhua Energy Co., the country’s largest coal supplier, gained 3.2 percent to HK$35 in Hong Kong, while PetroChina Co., the nation’s biggest energy producer, added 2.3 percent to HK$10.56. In Libya, allied attacks have effectively groundedQaddafi’s air force and driven back his offensive against the rebel stronghold at Benghazi, U.S. officials said yesterday, as the leader vowed to repel “enemy Christian states.” The Libyan military has not flown an aircraft in two days and the coalition was in full control of the airspace, Vice Admiral Bill Gortney told reporters at the Pentagon. It was possible a Libyan jet or helicopter would still take off, but it would be targeted by coalition patrols over the country, he said. Qaddafi denounced the coalition, including the U.S., the U.K. and France allied against him, as “the party of Satan.” “We will not leave our oil to America or France or Britain or the enemy Christian states that are now aligned against us,” the Libyan leader, who has ruled since 1969, said yesterday on state television. “We will not leave our land. We will fight for every inch of our land and liberate every inch of it.” New York Crude Oil futures advanced as much as 2.3 percent as tensions in Libya mounted, and as continuing unrest in the region renewed concerns the turmoil may spread and disrupt supplies. Ninety percent of Bahrain Petroleum Co.’s employees went on strike last week in response to a police crackdown on anti-government demonstrations, while Yemen declared a state of emergency on March 18. Crude oil for April delivery climbed as much as $2.28 to $103.35 a barrel in electronic trading on the New York Mercantile Exchange. It was at $102.93 at 2 p.m. Singapore time. LG Electronics gained 1.5 percent to 102,000 won in Seoul, while in Sydney, James Hardie Industries SE, the biggest seller of home siding in the U.S., rose 0.5 percent to A$6.22. Among uranium producers, Extract rose 14 percent to A$8.01, Energy Resources of Australia Ltd. increased 1.5 percent to A$8.12, and Paladin Energy Ltd. (PDN) gained 2.5 percent to A$3.69. Power Reconnected Japanese Prime Minister Naoto Kan said he can see “light at the end of the tunnel” as workers at Tokyo Electric Power Co.’s troubled Fukushima Dai-Ichi nuclear plant reconnected power to two of the failed reactors. In a flurry of announcements today, Kan said progress was being made in restoring power to reactors No. 1 and No. 2, while Tokyo Electric said it had connected No. 3 and No 4. Minutes later, state broadcaster NHK said engineers were evacuated as gray smoke was seen billowing from reactor 3. Water in cooling ponds holding spent-fuel rods atop the plant’s six reactors was below boiling point, Japan Defense Minister Toshimi Kitazawa said last night in a news conference. U.S. Energy Secretary Steven Chu said the Obama administration believes the worst of the crisis is over. Unit 2, where Tepco connected a 1.5-kilometer (1 mile) power cable March 18 as it tried to revive cooling systems knocked out by the magnitude-9 temblor and tsunami, is the main source of concern, Chu said on CNN’s “State of the Union” program. ‘We Export Uranium’ Australia says Japan’s atomic crisis won’t affect the sale of uranium, Sky News reported, citing an interview with Prime Minister Julia Gillard yesterday. “We do export uranium and we will continue to export uranium,” Gillard said. Doosan Heavy Industries & Construction Co. climbed 5.7 percent to 65,000 won in Seoul as concern eased that demand for nuclear power plants will abate. Also in Seoul, Hyundai Heavy Industries Co., the world’s largest shipbuilder, rose 1.3 percent to 479,000 won after saying it received a contract to build six container ships. Korean Air Lines Co., South Korea’s largest carrier, added 4.5 percent to 60,400 won as Japan’s progress improved the outlook for global travel. The company was also raised to “buy” from “underperform” at Bank of America Merrill Lynch, which cited recent declines in the share price, in a report today. The stock has declined in six of the past eight days. ‘Short-Term Rebound’ “We are seeing a rebound following last week’s decline,” said Castor Pang, Hong Kong-based research director at Cinda International Holdings Ltd. “This short-term rebound may be short-lived if oil prices continue to increase as tensions in Libya intensify and as uncertainties prevail in the nuclear situation in Japan.” China Overseas Land & Investment Ltd., a Hong Kong-based builder, jumped 3.8 percent to HK$14.64 after Kim Eng Holdings Ltd. recommended the stock as a “buy.” PCCW Ltd., Hong Kong’s No. 1 phone company, climbed 4.6 percent to HK$3.43 after saying it may spin off its telecommunications assets. 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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