Asian stocks gallop

GLOBAL MARKETS/ STOCK REPORT

Asian stocks gained the most in five weeks, led by banks, after JPMorgan Chase raised its bid for Bear Stearns, bolstering confidence in financial assets.

The Macquarie Group, Australia's biggest securities firm, led advances in Sydney and HSBC Holdings climbed in Hong Kong, driving both markets higher after a four-day break. The Westfield Group rose after US home sales unexpectedly gained.

"By seeing more value in Bear Stearns and paying more for it, the same could be said for the value of financials in this region," said Hans Kunnen at Colonial First State Global Management, which oversees $128 billion of assets. "I won't say overall sentiment has turned, but that the market is buoyed by bits of positive news."

The MSCI Asia Pacific Index added 3.1 per cent to 140.20 as of 5:28 pm in Tokyo, its largest increase since February 14 and a third day of gains. All 10 industry groups rose, with a measure of financial shares advancing 3.2 per cent to a three-week high.

Japan's Nikkei 225 Stock Average climbed 2.1 per cent to 12,745.22. The S&P/ASX 200 Index surged 3.7 per cent in Australia, while Hong Kong's Hang Seng Index added 6.4 per cent. Both markets were closed for Easter holidays.

EUROPE
European stock-index futures climbed after the higher bid for Bear Stearns shored up confidence in banks.

HSBC Holdings, Europe's biggest bank by market value, and Barclays Plc may advance. Commerzbank, Germany's second- largest bank, will probably rally after Credit Suisse Group recommended buying the stock.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 123 points, or 3.6 per cent, to 3,551 at 7:23 am in London. Most European markets were closed yesterday for public holidays.

US
US stock-index futures fell before a report that may show confidence among consumers retreated to a five-year low this month.

Bank of America retreated in Europe after Merrill Lynch said investors should sell the shares. Yahoo! rose after Citigroup raised its recommendation to "buy," saying Microsoft may increase its takeover bid for the company.

Dow Jones Industrial Average futures dropped 3 points to 12,537, while Nasdaq-100 Index futures slipped 1.75 points to 1,817.5.

US stocks rallied to the highest this month yesterday as JPMorgan Chase increased a bid for Bear Stearns and a gain in home sales boosted speculation the economy will recover. Confidence in financial assets helped bank stocks lead Asian and European indexes higher on Tuesday.