Asian stocks rise on hope of earnings growth

Asian stocks rose, paring the regional benchmark index's worst annual decline on record, amid speculation governments will step up measures to shore up the global economy and bolster earnings growth.

Japan's Nikkei 225 Stock Average added 1.3 per cent in a shortened trading day that was also the last for 2008. The gauge slumped 42 per cent in 2008, its biggest annual decline. Sony Corp rose to a two-week high on a report that it cut the cost of making its PlayStation3.

Taiwan's Taiex Index jumped 3.9 per cent, with all other markets rising except Singapore and China. South Korea's Kospi Index added 0.6 per cent, as SK Holdings Co climbed on plans to upgrade a refinery in Ecuador.

The MSCI Asia Pacific Index rose 0.6 per cent to 89.46 in Tokyo, with about two stocks advancing for each that declined. The benchmark measure has lost 43 per cent this year, the worst performance in its two-decade history.

The MSCI Asia Pacific Index's slump in 2008 reduced the average value of companies on the gauge to 13 times estimated profit, a fifth below the level at the start of this year.

Chi Mei Optoelectronics Corp, Taiwan's second-biggest liquid-crystal display maker, surged seven per cent to NT$10.70 (Dh1.19) as the government pledged $6.1 billion to help key industries through the slowdown.

Fubon Financial Holding Co, the island's second-biggest financial services company, surged seven per cent to NT$23.75.

BHP Billiton Ltd, Australia's largest oil company, climbed 2.6 per cent to A$29.65 (Dh75.35). Cnooc Ltd, China's largest offshore oil producer, added more than two per cent. Woodside Petroleum, Australia's number two oil producer, rallied 3.3 per cent to A$35.93. Cnooc jumped 7.8 per cent to HK$7.44 (Dh3.52) in Hong Kong. Japan's Mitsubishi Corp, a trading company that gets more than half of its profit from commodities, rose 2.8 per cent to ¥1,238 (Dh50.32).

Follow Emirates 24|7 on Google News.