Asian stocks rose for the first time in five days and European equity futures advanced amid speculation China will add to economic stimulus. Natural gas climbed to a five-month high, while corn snapped a three-day gain that drove prices up 13 percent. The MSCI Asia Pacific Index (MXAP) added 0.8 percent as of 7:13 a.m. in London. Hong Kong’s Hang Seng Index (HSI) climbed 1.1 percent. Euro Stoxx 50 futures gained 0.6 percent, while those on the Standard and Poor’s 500 Index rose less than 0.1 percent. Natural gas gained 1.2 percent, rising for a fifth day in New York. Corn slid 0.6 percent after surging the previous three days amid dry weather that curbed U.S. production. The China Securities Journal said the country may introduce “more proactive� policies to ensure stable growth in the world’s second-largest economy, while the Xinhua News Agency said China plans to boost Hong Kong’s integration with mainland financial markets. Italy today is scheduled to auction 9 billion euros ($11 billion) of 185-day bills on the eve of Europe’s 19th summit to tackle the debt crisis. “Most people think nothing has happened over the last 18 summits, so what can you expect from the 19th,� said Khiem Do, the Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management (Asia) Ltd., which oversees about $8 billion. “China still has a lot of tools available to it. Policy makers think, yes, the economy is slowing but it’s not a hard landing. They’re going to implement their policies gradually, not aggressively.� State Council More than two stocks gained for each that dropped in the MSCI Asia Pacific Index, which lost 3 percent in the past four days. The gauge has tumbled about 11 percent from its peak this year on Feb. 29 amid concern global growth is slowing as Europe’s debt crisis worsens. Japan’s Nikkei 225 Stock Average (NKY) advanced 0.7 percent, while benchmark gauges in the Philippines and Indonesia climbed at least 0.9 percent. The Hang Seng Index rose the most in almost two weeks after Xinhua cited a statement from China’s State Council as saying the nation will allow financial institutions in Hong Kong to set up consumer-financing companies in Guangdong province, among other measures to boost cooperation. President Hu Jintao visits Hong Kong June 29 to July 1 for the 15th anniversary of the city’s return to Chinese rule. Japan Tobacco Inc. (2914), Asia’s largest cigarette maker by market value, climbed 3.7 percent in Tokyo as investors sought shares of companies whose sales are least affected by an economic slump. Hopewell Holdings Ltd. surged 8.5 percent in Hong Kong after agreeing to pay the city’s government about $480 million to develop a hotel project. China Stimulus China may stabilize foreign trade, expand infrastructure investment, fine-tune monetary policies and reduce taxes, according to a commentary on the front page of the China Securities Journal. The central bank may lower reserve requirements for banks next month for the fourth time since November, the Shanghai Securities News reported. Natural gas futures climbed to $2.799 per million British thermal units, poised for the highest close since January as forecasts for hot weather signaled increased demand for the power-plant fuel. The yen traded near a one-week high against Europe’s shared currency. German Chancellor Angela Merkel and French President Francois Hollande meet today ahead of tomorrow’s summit. The Japanese currency traded at 99.29 per euro. The yen added 0.1 percent to 79.46 per dollar. The yield on Japanese 10-year bonds fell 1 basis point and the cost of insuring the nation’s bonds against default dropped after Prime Minister Yoshihiko Noda yesterday pushed a bill to double a sales tax through parliament’s lower house. The Markit iTraxx Japan index eased 1.5 basis points to 186.5 basis points, Deutsche Bank AG prices show. The benchmark rose 34.4 basis points this quarter through yesterday, according to CMA. To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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