Asian Stocks Gain as Europe Concerns Ease, Japan’s Yen Weakens

Sept. 9 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index higher for the first time in three days, as concern eased that the European deficit crisis will stall global economic growth and the yen weakened.

Canon Inc., a maker of consumer electronics that gets more than 80 percent of its sales outside Japan, gained 1.6 percent in Tokyo. Toyota Motor Corp., which counts North America as its biggest market outside Japan, rose 2.1 percent. BHP Billiton Ltd., the world’s biggest mining company, climbed 0.8 percent in Sydney after oil and metal prices gained.

“There is a sense of relief about Europe, so there is a temporary pause in risk aversion” said Mitsushige Akino,　who oversees about $450 million in Tokyo at Ichiyoshi Investment Management Co. “Exporters may be bought as they were heavily sold yesterday.”

The MSCI Asia Pacific Index gained 0.5 percent to 121.08 as of 9:27 a.m. in Tokyo. The gauge slumped 1.1 percent yesterday as a stronger yen deepened concerns over Japan’s recovery and caution spread ahead of a Federal Reserve survey. The Fed said yesterday the U.S. economy maintained its expansion while showing “widespread signs of a deceleration” in mid-July through the end of August, according to a survey by 12 regional Fed banks.

Japan’s Nikkei 225 Stock Average climbed 1.1 percent and South Korea’s Kospi index advanced 0.6 percent. Australia’s S&P/ASX 200 Index rose 0.7 percent. New Zealand’s NZX 50 Index dropped 0.5 percent.

Demand For Bonds

Futures on the Standard & Poor’s 500 Index added 0.2 percent. The gauge gained 0.6 percent yesterday as Europe concerns eased on improved demand for Portuguese and Polish bonds.

Canon increased 1.6 percent to 3,565 yen, while Toyota climbed 2.1 percent to 2,936 yen. The yen depreciated to as much as 84.03 against the dollar today, compared with 83.46 at the close of stock trading in Tokyo yesterday. Against the euro, it fell to 106.95 from 106.15. A weaker yen increases overseas income at Japanese companies when converted into their home currency.

BHP advanced 0.8 percent to A$38.23, while Rio Tinto Group, the world’s third-largest mining company, increased 0.8 percent to A$74.05. The London Metal Exchange Index of six metals including copper and zinc gained 0.9 percent. Crude-oil futures in New York rose 0.6 percent in after-hours trading, adding to yesterday’s 0.8 percent climb.

Kia Motors Corp. rose 1 percent to 34,500 won in Seoul after saying it will buy back 3.9 million of its own shares and give them to employees. Separately, the company denied a MoneyToday report that the South Korean automaker will begin construction on a third plant in China next year.

China Unicom (Hong Kong) Ltd. may be active in Hong Kong today after Telefonica SA, Europe’s second-biggest phone company, said a plan to boost its stake in Unicom is unaffected by Vodafone Group Plc’s sale of its China Mobile Ltd. holding.