Asian Stocks Post First Gain in Three Weeks on Economic Outlook

Asian stocks posted the biggest weekly advance in a month as U.S. economic data and a surprise interest-rate increase in Australia renewed optimism that the global economic recovery is on track.

Mazda Motor Corp., part owned by Ford Motor Co., surged 16 percent after it narrowed its full-year loss forecast and U.S. services industries grew after 11 months of contraction. Alumina Ltd. rose 7.5 percent after partner Alcoa Inc. reported better- than-estimated profit. Sumitomo Mitsui Financial Group Inc. climbed 17 percent after the government said lenders won’t have to boost provisions for bad loans to struggling small companies.

The MSCI Asia Pacific Index advanced 3.8 percent to 118.77 this week, its biggest gain since the period to Sept. 11. The gauge has climbed 68 percent from a five-year low on March 9 as better-than-estimated economic and earnings reports boosted speculation the global economy is recovering from the worst slowdown since World War II.

“We’re all hoping the global recession is winding to a close,” said Rob Patterson, who helps manage $3.4 billion at Argo Investments Ltd. in Adelaide. “Certainly, the economic indicators are getting less worse, but I don’t imagine the U.S. will be raising rates any time soon.”

Australia’s S&P/ASX 200 Index gained 3.3 percent as signs of growth prompted the country to become the first among the Group of 20 nations to lift borrowing costs. Hang Seng Index climbed 5.5 percent as property stocks rallied after Goldman Sachs Group Inc. recommended buying Sino Land Co.

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