Asian stocks rose, driving the MSCI Asia Pacific Index to an eight-week high, as the US Federal Reserve pledged to keep borrowing costs near zero for an "extended period" and the yen weakened.
James Hardie Industries, the biggest seller of home siding in the US, gained 1.1 per cent in Sydney. Mazda, which gets 21 per cent of its sales in Europe, rose 2.5 per cent as the euro strengthened after Standard & Poor's affirmed Greece's credit ratings. Mitsui Mining & Smelting surged 5.8 per cent after boosting its profit forecast and after commodity prices rose.
"Expectations that interest rates will remain low in the US are boosting demand for commodities," said Hiroichi Nishi, an equities manager at Nikko Cordial Securities in Tokyo.
The MSCI Asia Pacific Index rose 0.7 per cent to 123.82 in Tokyo, set to close at the highest level since January 21. The Nikkei 225 Stock Average advanced 0.7 per cent in Japan, where the central bank is scheduled to announce its latest policy decisions this afternoon.
South Korea's Kospi Index jumped 0.9 per cent and Taiwan's Taiex advanced 1 per cent. The S&P/ASX 200 Index rose 0.6 per cent in Sydney.
Futures on the Standard & Poor's 500 Index were little changed. The gauge rose 0.8 per cent yesterday to the highest close since October 2008 after the Fed's rate comments. The Fed has kept the federal funds rate target for overnight loans between banks in a range of zero to 0.25 per cent since December 2008. Policy makers began using the "extended period" language in March 2009 and have repeated it at each meeting since then.
The MSCI Asia Pacific Index has gained 8.4 per cent from a more than two-month low on February 8 as better-than-estimated US jobs data and a pledge of support from French President Nicolas Sarkozy for debt-stricken Greece boosted confidence in the global recovery.
S&P affirmed Greece's investment-grade BBB+ rating and dropped the country from "creditwatch negative," saying the 4.8 billion euros ($US6.6 billion) of budget cuts passed this month "were appropriate to achieve" the goal of cutting the European Union's biggest deficit.
The stock rally has lifted the average price of shares in the MSCI Asia Pacific Index to 18.7 times estimated earnings, compared with 15 times for the MSCI World Index of 23 developed nations.
