Most Asian stocks rose, sending the MSCI Asia Pacific toward its third weekly advance, as a weaker yen boosted Japanese exporters and as drugmakers climbed on speculation proposed changes to the US health system will fail.
Nissan, which gets about 77 per cent of its revenue outside Japan, climbed 1.9 per cent in Tokyo. The Bank of Japan may seek to expand a 10 trillion-yen ($US110 billion) fund that provides loans to banks in a March 16-17 policy meeting, according to two central bank officials who spoke on condition of anonymity. Takeda Pharmaceutical, Asia's biggest drugmaker, increased 1.2 per cent in Tokyo, tracking gains by US health-related shares.
"I would think highly of any additional easing by the BOJ to preempt the yen's appreciation," said Hiroshi Morikawa, a senior strategist at MU Investments.
"The economy is improving, so investors aren't bearish; nor are they bullish, as a recovery in corporate earnings is almost fully priced in."
The MSCI Asia Pacific Index rose 0.1 per cent to 122.96 in Tokyo, with 20 stocks advancing for 19 that declined. The gauge has gained about 2.4 per cent this week, as a lower-than-estimated US unemployment rate boosted investor confidence in a US economic recovery.
Shares in the gauge trade at 19 times estimated earnings, compared with 15 times for the Standard & Poor's 500 Index in the US and 13 times for the Stoxx Europe 600 Index.
Nikkei advances
Japan's Nikkei 225 Stock Average climbed 0.4 per cent to 10,708.47, the biggest advance among major Asia-Pacific benchmark indexes. Australia's S&P/ASX 200 Index and South Korea's Kospi Index were little changed.
The yen depreciated to 124.15 against the euro today from 123.31 in Tokyo yesterday, and weakened to 90.75 versus the US dollar today from 90.38. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.
Futures on the S&P 500 fell less than 0.1 per cent. The gauge gained 0.4 per cent yesterday in New York to the highest level since October 2008, as Citigroup led a bank rally and investors speculated that proposed changes to the health-care system will be harder to pass.
Health-care companies rose the most among the MSCI Asia Pacific Index's 10 industry groups. Takeda, which counts North America as its biggest overseas market, climbed 1.2 per cent to 4125 in Tokyo and was the biggest boost to the index.
