Asian stocks rose for a second day and Japan’s Topix Index erased losses from the 2008 collapse of Lehman Brothers Holdings Inc. after the European Central Bank said it’s ready to cut interest rates further.
Mitsubishi Heavy Industries Ltd. jumped 4.5 percent after Japan’s No. 2 maker of electricity generation equipment and its partner Areva SA won a deal to build a nuclear-power plant in Turkey. Toyota Motor Corp. rose 4.2 percent in Tokyo after the Nikkei newspaper reported the world’s biggest carmaker will report earnings tomorrow that may exceed analyst estimates. SJM Holdings Ltd. gained 3.2 percent in Hong Kong after Asia’s largest casino company reported higher first-quarter profit.
The MSCI Asia Pacific Index gained 1 percent to 141.73 as of 10:42 a.m. in Tokyo, with about two shares rising for each that fell. The gauge climbed 8.5 percent this year through yesterday amid optimism the Bank of Japan will deploy more measures to beat deflation and that policy makers in U.S. and Europe remain on standby to buoy growth.
“Investors like to be reassured from central banks that we are on the straight and narrow,” said James Lindsay, an Auckland-based fund manager at Tyndall Investment Management Ltd., which oversees about $23 billion. “Until economies really start to fire, I can’t see any pull-back of stimulus.”
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