Asian markets advance strongly on policy optimism (Bloomberg)  (23-03-2009)

March 23 (Bloomberg) -- Asian stocks advanced on optimism governments will succeed in efforts to revive lending, easing the worst slump since the Great Depression. Treasuries fell for a third day.

Japan’s Nikkei 225 Stock Average jumped 3.5% to 8,222.58, following after the holiday at the end of last week. Australia’s S&P/ASX 200 Index added 2.4%, while South Korea’s Kospi Index rose 2.5%. All markets gained except Vietnam and New Zealand.

Stocks worldwide advanced last week, lifting the MSCI World Index by 4.4%, as the U.S. and Japan announced more plans to bolster their financial systems and as Standard Chartered Plc became the latest lender to say it had a strong start to 2009.

The U.S. will this week outline regulatory changes aimed at avoiding a repeat of the financial crisis, an administration official said.

Mitsubishi UFJ, Japan’s biggest publicly traded bank, rose 4.9% to 513 yen. Mizuho Financial Group Inc., Japan’s second-largest publicly traded bank, gained 5.3% to 220 yen. Uny jumped 5.1% to 736 yen.

Angang Steel, China’s second-largest steelmaker, advanced 3.6% to 8.57 yuan. Baoshan Iron & Steel Co., which is owned by China’s largest producer, added 1.8% to 5.81 yuan. SAIC Motor Co., the nation’s biggest domestic carmaker, advanced 3.3% to 9.85 yuan.

Denway jumped 9.1% to HK$3.01 in Hong Kong after Templeton’s Mobius said the company will survive the move to combine China’s automakers.

The country’s stimulus spending may add as much as 1.9%age points to economic expansion and help the government achieve its growth target this year, to the State Council’s research group said yesterday.

Source: Bloomberg