Asian Stocks Head for Biggest Gain Since June on China


19/07/2012 08:58 AST  Bloomberg

Asian stocks rose, with the benchmark index headed toward its biggest gain in almost three weeks, amid speculation China will do more to boost growth and after U.S. housing starts jumped to the highest in four years.

The Hang Seng China Enterprises Index (HSCEI) of Chinese companies listed in the city jumped 2.4 percent as the country’s swap market signaled a further reduction in the reserve ratio requirement for banks. BHP Billiton Ltd. (BHP), Australia’s biggest oil producer, increased 2.5 percent as crude prices exceeded $90 a barrel for the first time since May. Man Wah Holdings Ltd. (1999), a sofa maker which gets more than half of its sales from the U.S., climbed 4.9 percent in Hong Kong.

The MSCI Asia Pacific Index (MXAP) gained 1.4 percent to 117.40 as of 2:21 p.m. in Tokyo, headed for its steepest advance since June 29. More than three shares rose for each that fell. The Asian gauge dropped 10 percent from this year’s high on Feb. 29 through yesterday as U.S. and Chinese reports signaled the world’s two largest economies are slowing.

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