Asian Stocks Post Weekly Gain on Stimulus Optimism; Banks Rise

March 14 (Bloomberg) -- Asian stocks rose for the first time in five weeks as Japan and China signaled more measures to buttress their economies from the deepening global recession.

PetroChina Co., the nation’s largest oil producer, climbed 12 percent in Hong Kong after crude oil surged and Premier Wen Jiabao said China can boost spending plans any time. Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, gained 4.5 percent in Tokyo after Prime Minister Taro Aso ordered more economic stimulus measures. Commonwealth Bank of Australia jumped 12 percent, pacing gains among financial companies, as three U.S. banks said earnings were improving.

“Markets can take comfort that countries with the ability to do so are providing fiscal stimulus, rather than waiting till it’s too difficult to fight the momentum,” said Tim Schroeders, who helps manage about $2.6 billion at Pengana Capital Ltd. in Melbourne. “We’re seeing some money parked in safe havens returning to the market.”

The MSCI Asia Pacific Index rose 3.9 percent to 74.72 this week, snapping a four-week, 14 percent decline. Japan’s Nikkei 225 Stock Average climbed 5.5 percent to 7,569.28, while Hong Kong’s Hang Seng Index rose 5.1 percent.

Chartered Semiconductor Manufacturing Ltd., the world’s third-biggest maker customized chips, plunged 48 percent after announcing a $300 million rights offering. Elpida Memory Inc., Japan’s biggest memory-chip maker, slumped 23 percent after a merger with Taiwanese rivals failed to materialize.

‘Government Support’

Governments from the U.S. to Japan and China have stepped up efforts to avert what the World Bank predicts will be the first global economic contraction since World War II. Reports this week showed China’s industrial production slowed, Australia’s jobless rate rose and Japan’s economy shrank the most since 1974 in the fourth quarter.

Japan’s Aso said yesterday he will consult a panel of economists, industry leaders and government officials next week on measures to stimulate the world’s second-biggest economy. China’s Wen told reporters the country has “adequate ammunition” to revive its economy and can add to its 4 trillion yuan ($585 billion) stimulus package at any time.

Also this week, Malaysia unveiled an additional $16 billion of spending, while New Zealand’s central bank reduced its benchmark interest rate to a record low.

PetroChina jumped 12 percent to HK$5.75 in Hong Kong this week after crude prices surged. BHP Billiton, Australia’s largest oil producer, climbed 15 percent to A$31.66.

Oil Surges

Crude oil for April delivery rose 1.6 percent in the week to $46.25 a barrel, its fourth week of gains. The contract surged before a meeting by the Organization of Petroleum Exporting Countries where it may decide to cut production.

Mitsubishi UFJ gained 4.5 percent to 419 yen in Tokyo. Nomura Holdings Inc., the country’s largest brokerage, jumped 12 percent to 469 yen. Finance Minister Kaoru Yosano said the government will also inject 121 billion yen into three regional banks and discuss ways to support the stock market.

Commonwealth Bank of Australia, the nation’s second-biggest lender, climbed 12 percent to A$30.25 in Sydney. Australia New Zealand Banking Group Ltd., the nation’s third biggest, rose 9.1 percent to A$13.49.

Bank of America Corp. joined Citigroup Inc. and JPMorgan Chase & Co. in saying this week that it was profitable in the first two months of 2009.

The comments eased concerns about the global credit crisis that has caused writedowns and losses at institutions worldwide to swell to more than $1.2 trillion and helped a rally in global equities. The MSCI World Index gained 8.5 percent this week, the most since the period ended Nov. 28.

Fund Raising

“Positive comments from the U.S. banks are reassuring, but we’re not out of the woods yet,” said Nicole Sze, a Singapore- based investment analyst for Bank Julius Baer & Co., which manages $350 billion. “Investors are still waiting for concrete signs that the economy has bottomed, stimulus measures are working and that the global financial system has stabilized.”

Chartered Semiconductor, which joined HSBC Holdings Plc and Shinsei Bank Ltd. in seeking to raise capital, tumbled 48 percent to 13 Singapore cents.

Elpida Memory Inc. plunged 23 percent to 418 yen after Taiwan ruled out a state-led merger of local computer chipmakers that would have resulted in an investment in the Japanese company.