Asian stocks rose, driving the MSCI Asia Pacific Index to its biggest gain this month, after the US Federal Reserve said the recession is easing and pledged to keep interest rates low.
James Hardie Industries NV, the No. 1 seller of home siding in the US, surged 9.9 per cent in Sydney. Commonwealth Bank of Australia, the nation’s largest lender, gained 4.9 per cent after Macquarie Group lifted its recommendation on the stock, citing the potential for an earnings recovery. Billionaire Li Ka-shing’s Hutchison Whampoa and Cheung Kong (Holdings) advanced at least 2 per cent in Hong Kong on better-than- estimated earnings.
“With earnings and economic data coming in better than expected, there’s an element of panic buying going on,” said Prasad Patkar, who helps manage the equivalent of $1.2 billion at Platypus Asset Management in Sydney. “The market’s full of reluctant bulls praying for the market to pull back because they want to deploy cash at better levels.”
The MSCI Asia Pacific Index gained 1.6 per cent to 112.94 as of 7.27 pm in Tokyo, the biggest advance since July 31. The gauge has climbed 60 per cent from a five-year low on March 9 amid speculation the global economy is recovering.
