Sub-prime plan buoys Asia

GLOBAL MARKETS/ STOCK REPORT

Asian stocks rose, led by financial companies and electronics exporters, on speculation that US banks will prevent sub-prime losses from slowing global economic growth.

Millea Holdings, Japan's biggest insurer, and Commonwealth Bank of Australia led gains after the Wall Street Journal said Ambac Financial Group made progress toward raising $3 billion in capital as part of a rescue agreement with banks. All 10 of the MSCI Asia-Pacific Index's industry groups advanced.

The rescue plan "boosts investors' confidence a chain reaction of sub-prime losses will be averted," said Yoshihiro Okumura, who helps oversee about $365 million at Chiba-gin Asset Management Co in Tokyo.

MSCI's Asian index added 1.4 per cent to 145.66 at 7:18 pm in Tokyo, following a 0.8 per cent retreat last week. The benchmark has rallied 10 per cent since reaching a 14-month-low on January 22 as concern eased that the US housing slump was dragging the economy into a recession.

Japan's Nikkei 225 Stock Average climbed 3.1 per cent to 13,914.57, the highest close since January 15 and Asia's biggest increase. Indices advanced elsewhere in the region, except China and Hong Kong. EUROPE
European stock-index futures climbed, following gains in the US and Asia, on speculation bond insurers will maintain their credit ratings, limiting further losses related to subprime-mortgage defaults.

Barclays, UBS and Deutsche Bank will probably lead financial shares higher. Novartis AG may move after the Eucreas diabetes treatment of Switzerland's largest drugmaker was approved for sale in Europe.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, increased 46 points, or 1.2 per cent, to 3,783 at 7:33 am in London.

US
US stock-index futures rose after Genentech, the largest US maker of anti-cancer drugs, won approval to market its top-selling treatment Avastin for women with breast cancer and Take-Two Interactive Software received a $2 billion takeover offer.

Genentech surged more than 10 per cent in Germany. Walt Disney advanced after Barron's said shares of the second-largest US media company may climb 25 per cent.

Standard & Poor's 500 Index futures expiring in March rose 5 points to 1,360.5 as of 10:02 am in London. Dow Jones Industrial Average futures increased 42 points to 12,437. Nasdaq-100 Index futures added 4.25 points to 1,785.25.

US stocks climbed last week after oil surged to a record and investors speculated that bond insurers will keep their credit ratings.