Asian markets end mostly higher on government efforts to end crisis (Bloomberg) (19-01-2009)

Jan. 19 (Bloomberg) -- Most Asian stocks ended Monday’s session higher boosted by commodity and finance companies, as optimism prevailed due to government efforts to end the credit crisis will bolster corporate earnings.

The MSCI Asia Pacific Index added 0.3 percent to 84.90 as of 3:15 p.m. in Tokyo, with about five stocks advancing for every four that fell. South Korea’s Kospi Index rose 1.4 percent, while China’s CSI 300 Index climbed 1.2 percent.

MSCI’s Asian gauge slumped 43 percent in 2008, its worst year on record, as the deepening financial crisis fueled a global recession that curbed demand for the region’s raw materials, automobiles and computers. The average valuation of the measure’s constituents has fallen about a fifth in the past year to 14 times estimated profit.

U.S. markets are closed today for a holiday. In New York, the Standard & Poor’s 500 Index rose for a second day on Jan. 16, adding 0.8 percent.

The administration of President-elect Obama will deploy the second half of the $700 billion Troubled Asset Relief Program “in a very different way,” said Lawrence Summers, the president-elect’s top economic adviser. The TARP may be directed to housing, automobile loans, consumer credits, small business and municipalities rather than banks, he said.

Rio Tinto, the world’s third-biggest mining company, surged 5.7 percent to A$40.55. BHP Billiton Ltd., the world’s largest mining company, added 1.7 percent to A$30.38. Mitsubishi Corp., which gets more than half its profit from trading commodities, gained 2.6 percent to 1,290 yen.

Source: Bloomberg