Asian Stocks Rise on Stimulus Hopes, Japanese Machinery Orders

April 9 (Bloomberg) -- Asian stocks rose for the first time in three days, led by automakers and electronics companies, on prospects for additional stimulus spending and an unexpected increase in Japanese machinery orders.

Denso Corp., Japan’s largest auto parts maker, climbed 3.7 percent as U.S. automakers said the Treasury will guarantee payments to suppliers. Toyota Motor Corp., which owns 23 percent of Denso, gained 2.1 percent amid optimism Japan will increase the amount it’s spending to revive the world’s second-largest economy. BHP Billiton Ltd., the world’s biggest mining company, rose 1.7 percent in Sydney on higher metal and oil prices.

“As signs of an economic recovery come into view, additional support measures will boost investor confidence,” Mitsushige Akino, who oversees the equivalent of $615 million at Tokyo-based Ichiyoshi Investment Management Co., said in an interview with Bloomberg Television.

The MSCI Asia Pacific Index rose 1.5 percent to 86.05 at 10:09 a.m. in Tokyo, snapping its two-day, 2.6 percent decline. The gauge has fallen 3.9 percent this year, extending last year’s 43 percent slump as the deepening recession decimated corporate earnings.

Japan’s Nikkei 225 Stock Average jumped 2.1 percent to 8,771.04. South Korea’s Kospi index added 2.1 percent. All markets open for trading advanced except New Zealand.

Futures on the Standard & Poor’s 500 Index rose 0.7 percent. The gauge rose 1.2 percent in New York yesterday as the Treasury said it may give funds to life insurers.

Bigger Stimulus

The MSCI Asia Pacific Index has climbed 20 percent from a five-year low reached on March 9 as governments from the U.S. to Japan widened measures to unfreeze credit markets and ease the global recession. Almost two-thirds of equities in the region have risen in the year to yesterday, according to Bloomberg data.

Japan’s ruling Liberal Democratic Party will propose the government implement a 15.4 trillion ($154 billion) stimulus package to help revive the economy, according to a document obtained by Bloomberg News. Prime Minister Taro Aso indicated this week he wanted to spend at least 10 trillion yen.

Orders for Japanese machinery, an indicator of capital investment in the next three to six months, climbed 1.4 percent in January from January, the Cabinet Office said today in Tokyo. The median estimate of 28 economists surveyed by Bloomberg was for a 6.9 percent drop.

Denso climbed 3.7 percent to 2,260 yen as Detroit-based General Motors Corp. and Chrysler LLC said yesterday that they will get financial aid from the U.S. Treasury to guarantee payments to their parts suppliers.

Oil, Metals Advance

Takata Corp., a Japanese seatbelt maker that supplies GM, gained 5.6 percent to 957 yen. Truck manufacturer Isuzu Motors Ltd., another GM supplier, jumped 6.4 percent to 134 yen. Toyota rose 2.1 percent to 3,830 yen.

BHP added 1.7 percent to A$32.33. A measure of six metals rose 0.7 percent in London yesterday, its second day of gains. Crude oil for May delivery added 1.4 percent to $50.07 a barrel in New York yesterday.

Inpex Corp., Japan’s largest oil explorer, rose 1 percent to 710,000 yen. Woodside Petroleum Ltd., Australia’s second- largest oil producer, gained 1.7 percent to A$38.82.