Asian Stocks Gain on Possible Bailout of U.S. Bond Insurers

Jan. 24 -- Asian stocks advanced on speculation a possible bailout of U.S. bond insurers will restore confidence in the global financial system.

Westpac Banking Corp., Australia's fourth-biggest financial services company, rose 2.3 percent. U.S.-traded receipts of Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, gained 4.2 percent yesterday from the closing price in Tokyo.

``Whether investors can sustain their confidence in the U.S. economy's stability is the key,'' Juichi Wako, a strategist at Nomura Securities Co. said in an interview with Bloomberg Television. ``I expect bank-related stocks to lead gains today.''

New York State's regulators, in an attempt to bolster the market's financial condition, met unnamed banks yesterday to discuss raising capital for bond guarantors. New capital may help preserve the top credit ratings for the bond insurers such as MBIA Inc., the industry's biggest.

Australia's S&P/ASX 200 Index climbed 123.30, or 2.3 percent to 5,536.00 at 10:11 a.m. in Sydney. New Zealand's NZX 50 Index, Asia's first market open for trading, advanced 59.13, or 1.6 percent, to 3,674.42 in Wellington.

Japan's Nikkei 225 Stock Average futures expiring in March last traded at 13,110 in Chicago, up from the close of 12,800 in Osaka and 12,765 in Singapore yesterday. The Bank of New York Co.'s Asia ADR Index, which tracks American depositary receipts of the region's companies, climbed 1.5 percent.

In the U.S., the Standard & Poor's 500 Index, which had been off to its worst-ever start to a year, added 2.1 percent, to 1,338.58, its first advance in six days. The Dow Jones Industrial Average rose 2.5 percent, to 12,270.17.