European and U.S. stock futures rose and Asian shares climbed, sending the MSCI World Index to a two- month high, on growing speculation government efforts are reviving the global economy. Treasuries fell and the yen declined against the dollar and the euro. HSBC Holdings Plc, Europe’s biggest bank, climbed 4.3 percent in Hong Kong after investors bought 97 percent of the company’s $17.7 billion rights offer. J Sainsbury Plc may rise as JPMorgan Chase & Co. recommended shares of the U.K.’s third- largest supermarket chain. Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 1.6 percent to 2,155 at 7:10 a.m. in London. The U.K.’s FTSE 100 Index is set to open 64 points higher, according to London-based inter-dealer broker BGC Partners. Standard & Poor’s 500 Index futures increased 0.2 percent. The S&P 500 gained 1 percent on April 3, as the VIX, an index of market volatility known as Wall Street’s “fear gauge,” fell below 40 for the first time since January, indicating traders are becoming more confident about the market advance. Some reports in the past month suggested the pace of economic decline is easing. U.S. durable-goods orders and home sales rose in February, while Chinese manufacturing increased. Recessions, Earnings Season In 11 recessions since 1938, U.S. stocks have rebounded an average of five months before a recovery in earnings, according to data compiled by Bloomberg. The American economy has contracted for 16 months, equaling the two longest slumps -- between 1973-1975 and 1981-1982 -- since the Great Depression. The first-quarter earnings season starts tomorrow with Alcoa Inc., the largest U.S. aluminum maker. The slide in earnings may moderate in the second and third quarters, and profits may start growing by the end of year, according to data compiled by S&P and Bloomberg. Banks will be responsible for all of the 76 percent rebound in the final three months of the year, because without financial companies, the gain turns into a 4.5 percent decline, the data show. HSBC added 4.3 percent to HK$51.55 after raising about $17.7 billion in the U.K.’s largest-ever rights offer. While HSBC has set aside about $53 billion to cover bad loans during the past three years, it has avoided taking U.K. government funding, unlike rivals Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc. Sainsbury, Bonds Sainsbury may gain after JPMorgan raised its recommendation on the shares to “overweight” from “neutral.” The MSCI Asia Pacific Index rose 0.6 percent. The yen slid to a five-month low against the dollar and euro as stocks rallied, damping demand for the currency as a refuge. Treasuries fell for a third day on speculation the U.S. will sell $59 billion of debt this week as it tries to pull the economy out of recession. Yields on 10-year Treasury notes rose two basis points to 2.91 percent. Gains in U.S. futures were limited as a person familiar with the deal said that talks for International Business Machines Corp. to buy Sun Microsystems Inc. for $7 billion collapsed after the two companies failed to agree on a price and terms of the deal. Sun rejected an offer of about $9.40 a share as too low, said the person, who declined to be identified because the talks are private.

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