Honda Motor, Japan's second-largest carmaker, rose to a six-month high in Tokyo and Kia Motors climbed the most in three weeks in Seoul. Sony gained after the Federal Reserve signalled interest rates won't be cut further, boosting the dollar. The US currency has dropped 15 per cent against the yen in the past year, cutting the value of Japanese exporters' sales.
The MSCI Asia Pacific Index added 0.9 per cent to 150.51 as of 5:56 pm in Tokyo, following a 1.8 per cent retreat on Tuesday. A measure of car and consumer-electronic manufacturers surged 3 per cent, the most in six weeks and the largest gain among the benchmark index's 10 industry groups.
Japan's Nikkei 225 Stock Average climbed 1.6 per cent to 14,435.57. About half of Asia's equity markets advanced. China's CSI 300 Index dropped 1.9 per cent, the region's biggest decline, on speculation government measures to control prices will dent earnings for steel and coal companies.
Shares of commodity producers fell, led by Woodside Petroleum and Newcrest Mining, after crude oil and gold retreated.
Europe
European stocks dropped on speculation banks may need more capital as losses increase, while lower oil and metals prices weighed on commodity producers. US index futures fell.
BNP Paribas SA slipped to the lowest since March, and Societe Generale SA sank the most in two months after Fitch Ratings said the banks may have to raise additional capital as their finances weaken. Royal Dutch Shell, Europe's largest oil company, slumped to a three-week low, and mining company Anglo American fell the most in a week.
Europe's Dow Jones Stoxx 600 Index declined 1.6 per cent to 315.94, the lowest in six weeks, at 11:15 am in London. The index has dropped 21 per cent from a six-year high a year ago on concern higher inflation, record oil prices and credit-related losses approaching $400 billion will push the US into recession. Futures on the Standard & Poor's 500 Index fell 0.4 per cent.
US
US stocks fell for a second day as growing speculation that Lehman Brothers Holdings will be forced to raise more capital led to a slump in financial shares. The Standard & Poor's 500 Index declined 8.02 points, or 0.6 per cent, to 1,377.65. The Dow Jones Industrial Average slipped 100.97, or 0.8 per cent, 12,402.85. The Nasdaq Composite Index lost 11.05, or 0.4 per cent, to 2,480.48.
Seven stocks fell for every five that rose on the New York Stock Exchange.
Nine of 10 industry groups in the S&P 500 retreated, extending the index's drop this year to 6.2 per cent. Benchmark indexes pared declines after Lehman denied speculation that it was forced to borrow money from the Federal Reserve.
