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Home Media News Asian Stocks Rise as Government Policies Provide Market Support
Asian Stocks Rise as Government Policies Provide Market Support
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Asian Stocks Rise as Government Policies Provide Market Support

20 Oct 2008

Oct. 20 (Bloomberg) -- Asian stocks advanced, led by financial and energy shares, after South Korea's government announced Asia's biggest financial rescue package and oil prices climbed for a second day. Hana Financial Group Inc., which controls South Korea's fourth-largest bank, surged 11 percent after the government guaranteed $100 billion of lenders' foreign-currency debt. Fubon Financial Holding Co. added 5.6 percent after agreeing to buy ING Groep NV's life insurance unit in Taiwan. BHP Billiton Ltd. climbed 7.1 percent on speculation OPEC will cut output. Nissan Motor Co. gained 6.2 percent after UBS AG recommended the shares. ``Government policies enacted so far have been enough to make sure that the worst of the panic is behind us,'' said John Vail, who helps oversee about $118 billion as global strategy head at Nikko Asset Management Co. ``We do feel uncomfortable being underweight equities when valuations are so low.'' The MSCI Asia Pacific Index rose 2.7 percent to 89.68 as of 1:51 p.m. in Tokyo. The gauge is still down 43 percent for the year, set for its worst annual performance since the benchmark was created in 1987. Shares in the Asian benchmark were valued at 10 times trailing earnings, near a record low reached on Oct. 10. The gauge was valued at 19.5 times earnings when it reached a peak on Nov. 1. About $30 trillion has been wiped off global stock benchmarks since the peak on Oct. 31 last year as the subprime mortgage crisis toppled financial institutions and spread to economies throughout the world.