World Business

Asian stocks rise as China tightening concerns ease

(Agencies)
Updated: 2010-05-24 16:34

Asian stocks rose, led by the biggest gain in China's shares since November, on speculation Chinese policy makers will rein in efforts to cool the economy as Europe's debt crisis threatens a global recovery.

The Shanghai Composite Index jumped 3.6 percent to 2,675.85 and the MSCI Asia Pacific Index rose 0.6 percent to 112.66 as of 4:08 pm in Tokyo. The Stoxx Euro 600 increased 1 percent to 239.41. Futures on the Standard & Poor's 500 Index slid 0.4 percent.

Standard Chartered Plc today revised its forecast for interest-rate increases in China this year to none, from two.

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Just three of the 911 stocks in the Shanghai Composite Index declined. Hong Kong's Hang Seng Index climbed 0.9 percent and the city's Hang Seng China Enterprises Index of mainland companies rose 2 percent, rebounding from a three-month low.

China Vanke Co, the nation's largest listed property developer, jumped 4.3 percent in Shanghai. Beiqi Foton Motor Co paced gains by automakers, rising 6.9 percent after the Shanghai Securities News reported the government will extend subsidies for trade-in vehicles to the end of this year.

Twelve-month non-deliverable yuan forwards weakened 0.2 percent to 6.7501 per dollar in Hong Kong. The yuan has barely moved versus the dollar this year, while against the euro it has appreciated 15 percent.