Asian Stocks Gain as Fed Rate Concern Eases, Commodities Rise

Feb. 22 (Bloomberg) -- Asian stocks rallied from the biggest decline in two weeks after a smaller-than-estimated increase in U.S. consumer prices eased concern the Federal Reserve will increase interest rates.

BHP Billiton Ltd., Australia’s top oil producer and the world’s largest mining company, gained 2.3 percent after metal and crude oil prices rose. Mitsubishi Corp., a trading company that gets about 40 percent of sales from commodities, advanced 2.9 percent in Tokyo. Camera maker Nikon Corp. climbed 3.6 percent in Tokyo after Credit Suisse Group AG upgraded the stock.

“The market will take back last week’s losses as concerns over the Fed rate increase ease,” said Kazuhiro Takahashi, a general manager at Daiwa Securities Capital Markets Co. in Tokyo.

The MSCI Asia Pacific Index gained 1.9 percent to 117.55 as of 9:46 a.m. in Tokyo. The gauge sank 2.1 percent on Feb. 19 after the Fed raised the cost of direct loans to banks. The index has lost about 7.3 percent from a 17-month high on Jan. 15 on speculation central banks will tighten monetary policy, and that Greece, Spain and Portugal will struggle to curb deficits.

Japan’s Nikkei 225 Stock Average advanced 2.8 percent to 10,401.12. South Korea’s Kospi Index gained 2.1 percent and Australia’s S&P/ASX 200 Index increased 1.6 percent. New Zealand’s NZX 50 Index rose 0.5 percent.

Futures on the Standard & Poor’s 500 Index gained 0.2 percent. The gauge rose 0.2 percent in New York on Feb. 19 after a government report showed an index of U.S. consumer prices rose 0.2 percent in January from the previous month, less than the 0.3 percent projected by economists.

New York Fed President William Dudley indicated on Feb. 19 that policy makers are more concerned about maintaining growth than fighting inflation, citing the consumer price data. The Fed raising the so-called discount rate from 0.5 percent to 0.75 percent on Feb. 18 triggered concern stimulus programs are winding down.

A gauge of raw material producers posted the biggest gain of the MSCI Asia Pacific Index’s 10 industry groups today.

Crude oil for March delivery climbed 1 percent to $79.81 a barrel on Feb. 19. The London Metal Exchange Index of six metals including copper and zinc gained 1.9 percent to its highest level since Jan. 20.