Asian Stock Markets Advance on Easing Subprime Concerns (Bloomberg) (19-02-2008)

Feb. 19 (Bloomberg) -- Asian stocks were gaining on Tuesday on easing concerns regarding further reports of subprime-related losses and after higher metals prices boosted natural-resources companies.

The MSCI Asia Pacific Index gained 1.6 percent to 146.21 at 3:57 p.m. in Tokyo, heading for its highest close since Feb. 5 with eight of its 10 industry groups closing higher.

Japan's Nikkei 225 Stock Average added 0.9 percent to 13,757.91, while the Topix closed 0.92% higher at 1,345.29. In Hong Kong, the Hang Seng rose to 24,123.17, gaining 363.92 points or 1.53%, while the Hang Seng China Enterprises gained 2.51% or 342.69 points to close at 13,972.94.

Bank of China jumped 7.5 percent to HK$3.29, its largest gain since Jan. 23 and the biggest percentage rise among stocks on the Hang Seng Index.

Banks also advanced after Qatar bought a stake in Credit Suisse Group, boosting optimism banks can find support from governments and so-called sovereign wealth funds.

An index of finance stocks on MSCI's regional benchmark rose 2.2 percent. It fell 7.2 percent in the two weeks through yesterday amid mounting subprime concerns. Australia & New Zealand Banking Group Ltd.'s chief executive yesterday said a ``bloodbath'' in debt markets will wipe out earnings growth.

Rallying from its plunge yesterday, National Australia Bank, the nation's largest by assets, gained 3.2 percent to A$30.46. Westpac Banking Corp., the fourth-largest in Australia, advanced 2.9 percent to A$23.15.

Hong Kong-listed HSBC Holdings Plc, Europe's largest bank by market value, gained 2.3 percent to HK$115, its first rise in three days.

Rio Tinto, the world's second-largest iron-ore producer, gained 1.9 percent to A$136.50. The company said yesterday it is seeking bigger price increases for iron ore from Asian steelmakers than the 65 percent agreed with Brazilian rival Cia. Vale de Rio Doce.

BHP Billiton, the world's largest mining company, rose 1.9 percent to A$39.70. Mitsubishi Corp., Japan's largest trading house, advanced 4.4 percent to 3,290 yen. Mitsui & Co., the second-biggest, climbed 3.1 percent to 2,355 yen.

Source: Bloomberg