Stocks gained for a third day and commodities rallied, with copper snapping a seven-day slump, as European governments increased efforts to contain the region’s sovereign-debt crisis. The dollar and yen weakened. The MSCI All Country World Index added 1.5 percent at 4:04 p.m. in Tokyo and the Stoxx Europe 600 Index jumped 2.1 percent. Standard & Poor’s 500 Index futures climbed 0.5 percent. Copper rose 1.6 percent in London, oil rallied 2.4 percent in New York, and gold advanced 1.4 percent. The Dollar Index slipped 0.5 percent, while the yen weakened against 15 of its 16 major peers. South Korea’s won strengthened from near a one-year low. U.S. Treasury Secretary Timothy F. Geithner predicted that European governments will use more force to resolve the region’s crisis after they heard the concerns of global finance officials during meetings in Washington last weekend. Italy and Spain will auction debt, a day after a euro-region central bank official said the European Central Bank is likely to debate restarting covered-bond purchases and may discuss interest-rate cuts to ease funding strains. “There’s no doubt the markets are very oversold,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages almost $100 billion. “There’s a good potential for a bounce and it then becomes about what follow-through reaction we see from Europe. Investors are pinning a lot of hope on next week’s ECB meeting. They’re hoping to see action out of that meeting.” Stocks Gain Just six shares retreated on the Stoxx 600. Germany’s DAX Index gained 3 percent, France’s CAC 40 Index added 2.4 percent and the U.K.’s FTSE 100 Index rose 2 percent. The MSCI Asia Pacific Index jumped 3.7 percent, snapping a three-day, 7.5 percent drop. The Asian index closed at the lowest level since May 2010 yesterday, when valuations fell to 11.1 times estimated earnings, the cheapest level since October 2008, according to data tracked by Bloomberg. Japan’s Nikkei 225 Stock Average added 2.8 percent and Australia’s S&P/ASX 200 Index rose 3.6 percent. South Korea’s Kospi Index rallied 5 percent, the most since January 2009. Philippine financial markets were shut as Typhoon Nesat made landfall. An index of financial shares on the MSCI regional index rose 4.1 percent, the first gain in seven days. Industrial & Commercial Bank of China (1398) Ltd., the world’s largest lender by market value, rose 6.5 percent in Hong Kong, rebounding from the lowest level since March 2009. BHP Billiton Ltd. (BHP) and Rio Tinto Group rose at least 4.1 percent each, tracking gains in raw material prices. The S&P 500 rose 2.3 percent yesterday, the most since Sept. 7. Berkshire Hathaway Inc. rallied yesterday after billionaire Warren Buffett’s company said it plans a stock buyback. Home Prices Data today may show the S&P/Case-Shiller index of property values in 20 cities fell 4.4 percent from July 2010, the 10th- straight year-on-year drop, according to the median forecast of economists surveyed by Bloomberg News. Separate data may show consumer confidence climbed this month from the lowest in more than two years. Treasury 10-year yields climbed three basis points to 1.93 percent today, adding to a two-day increase. The Dollar Index, which tracks the U.S. currency against those of six trading partners, is extending yesterday’s 0.2 percent retreat. The dollar was little changed at 76.35 yen and fell 0.3 percent to 98.65 cents versus its Australian counterpart. It weakened 0.7 percent to 78.58 cents against the New Zealand dollar. The euro was little changed at $1.3533 and traded at 103.37 yen from 103.34 yen yesterday, when it touched 101.94 yen, the weakest level since June 2001. Spain will sell 175- and 77-day bills, while Italy is preparing to auction 3.5 billion euros ($4.7 billion) of bonds maturing in 2013, as well as 8 billion euros of 182-day bills and 3 billion euros of 76-day bills. ECB Policies The ECB is likely to debate restarting covered-bond purchases and more measures to ease monetary conditions next week, a central bank official said. Reintroduction of 12-month loans to banks will also be discussed at the ECB’s Oct. 6 policy meeting, said the person, who spoke on condition of anonymity because the information is confidential. ECB Executive Board member Lorenzo Bini Smaghi said the ECB will do whatever is necessary to supply sufficient funds to European banks. The won climbed 1.6 percent to 1,173.55 per dollar, the biggest increase since June 2010, after yesterday dropping to 1,192.85. The Taiwan dollar strengthened for the first time in seven days, gaining 0.4 percent to NT$30.462 versus its U.S. counterpart. Copper for three-month delivery rose 1.6 percent to $7,380 a metric ton on the London Metal Exchange. The metal dropped 17 percent in the previous seven days. Zinc climbed 1.8 percent, also advancing for the first time in eight days, while nickel increased 3.1 percent. Oil, Gold Oil for November delivery rallied 2.4 percent to $82.18 a barrel on the New York Mercantile Exchange, extending yesterday’s 0.5 percent gain. Cash gold advanced 1.4 percent to $1,649.80 an ounce, halting a four-day losing streak. The cost of insuring Asia-Pacific corporate and sovereign bonds against non-payment decreased, with the Markit iTraxx Australia index dropping 10 basis points to 207 basis points, Westpac Banking Corp. prices show. That gauge is set for the lowest level since Sept. 21, according to data provider CMA. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan fell eight basis points to 230, Royal Bank of Scotland Group Plc prices show. That will be the lowest level since Sept. 21, according to CMA. 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: Richard Dobson at rdobson4@bloomberg.net

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