March 18 (Bloomberg) -- Asian stocks rose, led by Japanese insurers and technology companies, on speculation earnings will withstand an economic slowdown. Chinese equities plunged on interest rate concerns.
Aioi Insurance Co. climbed the most in three weeks in Tokyo after Deutsche Bank AG raised its rating. Ricoh Co., Japan's second-biggest office equipment maker, advanced after saying it expects sales to climb. Jiangxi Copper Co. was one of 40 stocks that tumbled by the daily limit in China after Premier Wen Jiabao said the nation will take ``forceful'' steps to fight inflation.
``There's bargain hunting going on,'' said Renault Kam, who helps manage $6 billion at Atlantis Investment Management in Hong Kong. ``Markets need to wait until after the first half of this year to stabilize. Investors are still cautious.''
The MSCI Asia Pacific Index gained 0.4 percent to 132.83 as of 3:15 p.m. in Tokyo. The benchmark is still down 16 percent this year.
Japan's Nikkei 225 Stock Average added 1.5 percent to 11,964.16. China's CSI 300 Index slumped 5.2 percent to an eight- month low, while Hong Kong's Hang Seng Index fell 1.2 percent.
Eva Airways Corp. led gains by transportation stocks in Taiwan after Wen told reporters in Beijing that China will pursue direct air and shipping routes with the island. BHP Billiton Ltd., the world's largest mining company, tumbled after copper and aluminum prices declined.
Aioi surged 10 percent to 561 yen, while Nipponkoa Insurance Co. climbed 6.5 percent to 773 yen. The two companies are Japan's fourth- and fifth-largest casualty insurers.
Ratings Upgrade
Tatsuo Majima, an analyst at Deutsche Bank, boosted Aioi to ``buy'' from ``hold'' and Nipponkoa to ``hold'' from ``sell,'' saying recent declines in the stocks have made them attractive.
Ricoh climbed 4.1 percent to 1,452 yen, the most since Feb. 21, after saying it expects operating profit and sales to rise in the next three years.
Jiangxi Copper, China's second-largest producer of the metal, tumbled 3.96 yuan to 35.62 in Shanghai.
China's Wen said the government will take ``appropriate and forceful'' measures to tackle inflation, which climbed last month to the fastest pace in 11 years. Central Bank Governor Zhou Xiaochuan said today there was room to tighten all monetary policy tools, including interest rates and the amount of money commercial lenders must set aside as reserves.
China Shenhua Energy Co., the nation's biggest coal producer, declined 6.4 percent to HK$30.85 in Hong Kong, after Goldman, Sachs & Co. and Macquarie Group Ltd. reduced their share-price estimates.
Trade Links
Eva Airways, Taiwan's No. 2 carrier, gained 6.9 percent to NT$18.55. China Airlines, Taiwan's largest carrier, advanced 7 percent to NT$18.45.
Wen said he is ``hopeful'' that cross-strait talks with Taiwan on direct trade, postal services, and air shipping routes can resume at an early date.
BHP fell 4.8 percent to A$35.70 in Sydney, while Rio Tinto, the world's third-biggest mining company, dropped 3.9 percent to A$122.80. Sumitomo Metal Mining Co., Japan's largest gold producer, plunged 7.9 percent to 1,911 yen.
A measure of six metals traded on the London Metal Exchange, including copper, zinc and nickel, tumbled 4.7 percent yesterday, the most since Aug. 16, 2007. Copper and aluminum fell 4 percent, the exchange-imposed daily limit, on the Shanghai Futures Exchange today.
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