Asian Stocks Advance as US Fed Considers More Asset Purchases
Jan. 26 (Bloomberg) -- Asian stocks rose for a second day after the Federal Reserve extended its pledge to keep interest rates low and Chairman Ben S. Bernanke said the central bank is considering more asset purchases to boost economic growth.
Li & Fung Ltd., a supplier of toys and clothes to Wal-Mart Stores Inc., advanced 3.4 percent in Hong Kong. Cnooc Ltd. and other energy companies advanced after oil and metal prices climbed. Franshion Properties China Ltd. led gains among Chinese developers on speculation the mainland will ease lending. Tokyo Electric Power Co. rose 5.4 percent after a report the company will accept public funds to avoid bankruptcy.
The MSCI Asia Pacific Index gained 0.8 percent to 122.33 as of 3:27 p.m. in Tokyo with all 10 industry groups on the measure advancing. The gauge gained 0.5 percent over the past three days, while Hong Kong's market was closed for the Lunar New Year holiday.
The Fed's statement “is in favor of stock markets,” said Ayako Sera, a market strategist in Tokyo at Sumitomo Trust & Banking Co., which manages the equivalent of $321 billion. “The Fed is clearly saying it will print more money and do more policy easing.”