Asian Stocks advance on easing credit, oil concerns (Bloomberg) (23-07-2008)

July 23 (Bloomberg) -- Asian stocks rose, sending the regional benchmark to a three-week high, after Macquarie Group Ltd. said it made a ``solid'' start to the year, boosting speculation bank earnings will withstand tighter credit markets.

The MSCI Asia Pacific Index gained 1.8 percent to 135.39 as of 12:54 p.m. in Tokyo, taking a three-day rally to 4.8 percent and poised for the highest close since July 1. About six stocks gained for each that declined today.

Japan's Nikkei 225 Stock Average climbed 1.3 percent to 13,349.37. Asahi Breweries Ltd., Japan's biggest brewer by sales, advanced after saying first-half profit beat its own forecast.

Most benchmark indexes in Asia rose today. The MSCI index has lost 14 percent this year, part of a global slump in equities that erased almost $13 trillion from an October record, as oil prices soared and the world's largest banks and securities firms reported more than $467 billion of writedowns and credit losses.

The banking sector led advances with Macquarie gaining 13% to A$52.80 despite posting its slowest profit growth in two years in May due to writedowns on its European assets

Other financial companies gained, on speculation credit- market losses will ease as the risk of holding corporate bonds fell in Asia. A gauge of financial stocks led gains among the MSCI Asia Pacific Index's 10 groups, contributing to 53 percent of the broader measure's advance.

Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, advanced 2.7 percent to 1,013 yen. Mizuho Financial Group Inc., Japan's No. 2 bank by assets, climbed 3.8 percent to 580,000 yen. National Australia Bank Ltd., the nation's largest bank, climbed 5.6 percent to A$29.20.

Source: Bloomberg