Asia stocks rose the most in a month, the yen fell to a three-month low and metals rallied after China pledged to help resolve Europe’s debt crisis.
The MSCI Asia Pacific Index (MXAP) advanced 1.4 percent as of 12:43 p.m. in Tokyo, led by technology shares. Standard & Poor’s 500 Index futures added 0.6 percent. The Nikkei 225 Stock Average jumped 2.1 percent, while the yen weakened against all of its major peers. The euro climbed 0.2 percent to $1.3159. Zinc, tin, lead and copper rose at least 0.7 percent and oil increased 0.5 percent. Ten-year Treasury yields rose two basis points to 1.96 percent.
China is ready to be more involved in resolving the crisis through the European Financial Stability Facility and European Stability Mechanism, said People’s Bank of China Governor Zhou Xiaochuan in a speech, echoing comments made yesterday by Premier Wen Jiabao. The leaders of Greece’s two biggest political parties will provide written commitments to budget cuts, a government official in Athens said.
“China could make Europe’s problems go away,” said Peter Jolly, head of market research at National Australia Bank Ltd. in Sydney. “They have the funds. To the extent that China will participate in the European solution, it takes away some of the flight to quality in Treasuries.”
The Nikkei 225 is poised to close at the highest level since August. The Bank of Japan unexpectedly added 10 trillion yen ($128 billion) to an asset-purchase program yesterday and set a 1 percent goal for inflation to boost the economy.
European finance ministers canceled a Brussels meeting slated for today and will hold a teleconference instead to prod Greece to do more to clinch a 130 billion euros ($170 billion) aid package.
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