Asian stocks climbed, with the MSCI Asia Pacific Index up to a five-month high, and the Korean won rose as a rebound in U.S. capital goods orders boosted optimism the global economy was recovering. Gold advanced to a record. The MSCI Asia Pacific Index gained 1.2 percent to 127.04 at 3:39 p.m. in Tokyo, extending a four-week rally. Futures on the U.S. Standard & Poor’s 500 Index were little changed and those on the Euro Stoxx 50 rose 0.6 percent. The euro weakened against 14 of 16 major counterparts and the Korea won added 0.6 percent to 1,148.35 per dollar, reaching its strongest level in more than four months. China’s yuan gained to its highest since 1993. Investor optimism improved after U.S. bookings for goods such as computers and communications gear climbed 4.1 percent in August and as a government official said Japan was considering a stimulus plan worth as much as 4.6 trillion yen ($54.6 billion). Gains in Asian stocks were tempered on concern strengthening currencies would dampen exports and as Takefuji Corp., Japan’s third-biggest consumer lender, said it was studying various ways to restructure itself. “Rising capital investment in the U.S. is a positive sign that shows companies expect demand to increase,” said Ng Soo Nam, Singapore-based chief investment officer at Nikko Asset Management Co., which has $123 billion in assets. “We have to watch whether the improvements” are sustainable. More than four stocks gained for every one that fell on the MSCI Asia Pacific Index which is up 13 percent since June 30, its best quarter since the period ended Sept. 30. Japan’s Nikkei 225 Stock Average was up 1.4 percent and Australia’s S&P/ASX 200 Index gained 1.6 percent. Komatsu, Canon Komatsu Ltd., the world’s second-biggest maker of construction equipment, jumped 3.2 percent in Tokyo, while Canon Inc., a camera maker that gets 28 percent of its sales in the Americas, rose 2.5 percent. Japanese consumer lenders fell as Takefuji said it was looking at ways to revitalize its business. The Markit iTraxx Japan index of credit-default swaps rose 2 basis points to 101 in Tokyo, according to Morgan Stanley. BHP Billiton Ltd., the world’s largest mining company, climbed 1.6 percent. Korea Zinc Co. jumped 5.5 percent to a record in Seoul as gold and silver advanced. Mongolian Mining Corp. raised the price range for its initial share sale in Hong Kong, terms for the transaction show. Gold for immediate delivery climbed to a record $1,300.15 an ounce as investors sought to protect their wealth, and traded at $1,298.65. Silver advanced to $21.6075 an ounce, the highest price since 1980, and traded at $21.5606 an ounce. Silver has jumped 28 percent this year, outperforming global equities, Treasuries and most industrial metals. Euro, Won The euro weakened against the dollar and yen as speculation European banks will need more funds curbed demand for assets in the 16-nation region. Ireland discloses the final expenses of bailing out Anglo Irish Bank Corp. this week. The euro also retreated from a eight-week high versus the yen after Der Spiegel reported the European Commission is lacking confidence in the viability of German regional lenders. The euro dropped to $1.3455 in Tokyo from $1.3492 in New York last week and declined to 113.34 yen from 113.62 yen. The dollar was at 84.24 yen from 84.21 yen. The South Korean won rose to its strongest level in more than four months after signs of a recovery in the U.S., its second-biggest export market. South Korea’s currency gained 5.8 percent in the past three months, the best performer among Asia’s 10 most-traded currencies. The Taiwan dollar strengthened 0.8 percent to NT$31.42. Yuan, U.S. Economy “The U.S. data is looking better and along with stronger Asian currencies, the won is also getting a lift,” said Yun Se Min, a Seoul-based currency trader for Busan Bank. “We’re also seeing exporters trying to repatriate income, which will strengthen the won even more.” China’s yuan climbed for a 10th straight day on speculation the government will bow to political pressure to allow faster appreciation. The yuan rose 0.1 percent to 6.7009 per dollar as of 10:04 a.m. in Shanghai, from 6.7079 on Sept. 21, according to the China Foreign Exchange Trading System. The currency earlier touched 6.6950, the strongest level since the central bank unified official and market exchange rates at the end of 1993. The U.S. national activity index declined to minus 0.5 in August from zero in July, according to the median estimate of economists in a Bloomberg News survey before the Fed Bank of Chicago releases the data today. A reading below zero indicates below-trend-growth in the economy. The Conference Board’s U.S. consumer confidence index fell to 52.3 this month from 53.5 in August, according to another survey before the New York-based research group’s data tomorrow. To contact the reporters for this story: James Poole in Singapore at jpoole4@bloomberg.net Jonathan Burgos in Singapore at jburgos4@bloomberg.net. To contact the editor responsible for this story: Patrick Chu in Tokyo at pachu@bloomberg.net

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