Asian stocks rose, with the region’s benchmark index set for its biggest rally this month, as a surge in commodities helped ease concern the global economic recovery is slowing. The euro gained versus the dollar and yen. The MSCI Asia Pacific Index jumped 1.2 percent as of 1 p.m. in Tokyo, with three shares advancing for every one that fell. Standard & Poor’s 500 Index futures added 0.2 percent. Oil reached a two-week high, copper climbed for a third day and wheat added 1.2 percent. The euro rallied 0.4 percent to $1.4143, while South Korea’s won rose 0.9 percent to 1,091.20 per dollar. Raw material producers advanced after Deutsche Bank AG said copper will probably climb, joining Goldman Sachs Group Inc. in predicting higher commodity prices. Data today showed Korea’s consumer confidence rose to a three-month high, while a report is forecast to show the U.S. economy expanded faster than initially estimated. Asian investors bought 16 percent of a 4.75 billion euro ($6.7 billion) sale of bonds by the European Union to help bail out Ireland and Portugal yesterday. “Rebounding commodity prices indicate that demand is still there and signify to investors that the global economy is still in good shape,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “Stocks are a bit oversold and valuations are low.” All 10 industry groups on MSCI’s Asia Pacific Index advanced, helping the gauge rebound from its lowest level since March 21. South Korea’s Kospi index (KOSPI) rallied 1.7 percent after Citigroup Inc. and Credit Suisse Group AG predicted the gauge will rebound from recent losses. Japan’s Nikkei 225 Stock Average rose 1.4 percent while the S&P/ASX 200 Index rose 1.1 percent in Australia. Automakers, Commodity Shares Automakers rose, led by Hyundai Motor Co.’s 4.8 percent gain. Canon Inc. (7751) jumped 5.4 percent after the world’s biggest camera maker said it plans to buy back as much as 1.2 percent of its total shares for as much as 50 billion yen ($611 million). Graincorp Ltd. (GNC), eastern Australia’s largest grain handler, surged 6.8 percent after it raised its full-year profit forecast. BHP Billiton Ltd. (BHP), the world’s largest mining company, advanced 1.5 percent advance. S&P’s GSCI Index of 24 raw materials rose 0.4 percent, extending a two-day gain, after Deutsche Bank said copper will average $11,500 a metric ton in 2012, 21 percent more than this year’s average. Goldman Sachs this week recommended buying copper and zinc, reversing last month’s call to sell commodities, and also raised its forecast for Brent crude oil prices. Oil, Copper West Texas Intermediate crude for July delivery added 0.2 percent to $101.56 a barrel in New York, adding to a two-day, 3.7 percent gain. Futures earlier jumped as much as 0.6 percent after an Energy Department report yesterday showed distillate stockpiles declined 2.04 million barrels to 141.1 million last week, the lowest since April 2009. Supplies were projected to be unchanged last week, according to a Bloomberg News survey of analysts. Brent crude increased 0.1 percent to $115 a barrel, also rallying for a third day. Copper for three-month delivery rose as much as 0.4 percent on the London Metal Exchange, after advancing 2.3 percent yesterday. Silver for July delivery rose 2.1 percent to $38.425 an ounce on the Comex in New York. Wheat rose to $8.0575 a bushel, while corn gained 0.7 percent to $7.475 a bushel, amid speculation that rain this week in the U.S. Midwest and northern Great Plains may extend planting delays. U.S. stocks rose yesterday, helping the S&P 500 snap three days of losses. NetApp Inc., a data-management company and Guess? Inc. jumped in extended trading after the companies forecast earnings that beat analyst estimates. Gross domestic product probably expanded 2.2 percent last quarter, faster than the 1.8 percent pace initially forecast, according to economists surveyed by Bloomberg before today’s Commerce Department report. Treasuries, Dollar Treasuries retreated for a second day, with yields on 10- year notes climbing two basis points to 3.15 percent. The Dollar Index, which tracks the U.S. currency against those of six major trading partners, dropped 0.3 percent. The euro climbed 0.3 percent to 115.82 yen. Europe’s 17- nation currency gained against most of its 16 most-active counterparts after the Financial Times reported that European Financial Stability Facility Chief Executive Officer Klaus Regling said Asian investors, including China, may buy Portuguese bailout bonds. “Comments from the head of the EFSF that China was clearly interested in purchasing its bond issue next month is providing support for the euro,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney. Leaders from Germany and France will join other Group of Eight leaders at a summit at the coastal resort of Deauville today amid efforts by Europe to resolve the region’s debt crisis. The won rebounded from a two-month low after the central bank reported today an index of consumer confidence rose to 104 in May from 100 in April. A reading above 100 indicates optimists outnumber pessimists. Australia’s dollar rose 0.4 percent to $1.0576, while the New Zealand dollar gained 1 percent to 80.66 U.S. cents. To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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