Asian stocks rose for the first time in three days, led by commodity and consumer-related companies, on signs earnings in the region are rising, and as South Korea's current account surplus widened.
The MSCI Asia Pacific, excluding the Japan Index, rose 2.3 per cent to 268.89. The gauge lost four per cent in the past two days amid concern an outbreak of swine flu will derail a global economic recovery. The MSCI index has rallied more than 26 per cent in the past two months amid speculation the worst of the financial crisis had passed.
Hong Kong's Hang Seng Index gained 2.8 per cent at the close of trading, while South Korea's Kospi index climbed 2.9 per cent. Taiwan's Taiex index advanced 0.3 per cent as the government said it might act to buttress stocks against swine flu concerns. The Japanese market was shut for a holiday.
China Petroleum, also known as Sinopec, rose 3.6 per cent to HK$5.80. The company said profit is expected to grow after the government eased fuel price controls and oil slumped from a record. First-quarter net income jumped 85 per cent, Sinopec said.
Also in Hong Kong, Bank of China, the nation's third largest by market value, gained 2.5 per cent to HK$2.83, while Bank of Communications rose 4.3 per cent to HK$6.11. The two lenders posted first-quarter profit that beat analysts' estimates as record lending growth outweighed the impact of a slowing economy and asset writedowns.
Li & Fung, the biggest supplier of toys and clothes to Wal-Mart Stores, surged 7.2 per cent to HK$21.05 in Hong Kong as the US consumer report fuelled optimism demand will pick up.
China Shenhua rose 3.1 per cent to 24.74 yuan, contributing to the Shanghai Composite Index's first gain in four days.
First-quarter profit climbed 17 per cent after Shenhua boosted output to exploit higher prices and better demand.
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