China Stimulus Boosts Asian Stocks

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HONG KONG: Asian stocks and commodity prices climbed on Monday after China unveiled a nearly $600 billion economic stimulus plan, one of many measures countries are undertaking to limit the economic fallout from the financial crisis. Japanese government bonds and U.S. Treasuries retreated as funds flowed back into riskier assets on hopes for stimulus measures by other major economies, with U.S. President-elect Barack Obama pushing for urgent passage of more fiscal spending in the world's largest economy. The yen fell as investors embraced the high-yielding Australian dollar after China's announcement and as financial officials from the Group of 20 economic powers, which include major developing countries, ironed out ways to stimulate growth at a weekend meeting. Japan's Nikkei share average .N225 rose 5.5 percent in early trade, getting a boost from the gains on Wall Street late last week on some bargain hunting among investors. The market shrugged off data earlier on Monday showing Japan machinery orders matched the biggest quarterly drop on record in the July-to-September period, focusing instead on the hefty Chinese spending measures targeting infrastructure. The Shanghai Composite .SSEC index jumped 5.3 percent, helping lift the MSCI index of Asia-Pacific stocks outside of Japan. South Korea's KOSPI index .KS11 pushed up 1.5 percent after initially struggling to hold gains due to the drag of Hyundai Motor, which lost 4.4 percent. But Taiwan's benchmark TAIEX .TWII fell, struggling even after the country's central bank delivered a surprise interest rate cut at the weekend, the fourth reduction in a little more than a month to shield the export-dependent economy.





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