Asian Stocks Rise on U.S., India Stimulus Plans; Santos Climbs

Asian stocks and U.S. futures rose after U.S. President-elect Barack Obama pledged the biggest public works program in about 50 years and India lowered interest rates. Komatsu Ltd., the world’s No. 2 maker of construction machinery, added 7 percent after Obama said he’s planning the largest spending package since President Dwight D. Eisenhower created the interstate highway system. India’s S&P CNX Nifty Index futures gained 3.8 percent as the benchmark interest rate was cut one percentage point and the government unveiled a $4 billion stimulus plan. Santos Ltd., Australia’s third-biggest oil and gas producer, surged 8.6 percent on takeover speculation. “At the moment governments are the only ones feeding cash into the system,” said Masaru Hamasaki, who helps oversee about $3.3 billion at Toyota Asset Management Co. in Tokyo. “It’s a fair bet to say the policies of the U.S. will support demand.” The MSCI Asia Pacific Index gained 2.6 percent to 81.61 as of 12:03 p.m. in Tokyo. All 10 industry groups advanced, with about seven stocks rising for each that declined. The MSCI measure fell 3.8 percent last week as commodity prices slumped amid signs the global recession is deepening. Japan’s Nikkei 225 Stock Average advanced 2.6 percent to 8,120.71. Mizuho Financial Group Inc. rose after loan growth at Japanese banks accelerated in November as the global credit crisis shut companies out from the bond market. Australia’s S&P/ASX 200 Index jumped 4 percent and South Korea’s Kospi Index climbed 4.4 percent. Most markets open for trading in the region advanced, with Singapore, Indonesia and Malaysia closed for public holidays.