March 21 (Bloomberg) -- Asian stocks rose, led by banks and power producers, on speculation further credit-market losses will be limited and after the price of crude oil fell.
Mitsubishi UFJ Financial Group Inc. rallied after capital constraints at Fannie Mae and Freddie Mac, the world's two biggest mortgage companies, were eased. Tokyo Electric Power Co. gained on speculation costs will decrease. Shandong Gold Mining Co. tumbled after gold posted its biggest weekly drop since 1990. Most Asian markets are closed for holidays today.
``The concerns that major firms could have bigger losses, even go broke, have calmed down a bit,'' said Kim Ki Bong, who oversees some $2.5 billion as chief investment officer at CJ Asset Management in Seoul. ``We're seeing a relief rally.''
The MSCI Asia Pacific Index added 0.4 percent to 134.77 as of 11:53 a.m. in Tokyo. Six of the index's 10 industry groups advanced, with measures of utilities and financial stocks posting the biggest gains. The benchmark has fallen 0.9 percent this week, its third straight weekly loss.
The index, down 15 percent this year, has only risen for two of the 12 weeks in 2008 on concern the U.S. will fall into a recession amid mounting losses tied to the country's subprime mortgage industry. Stocks on the index were valued at 14 times earnings last week, the lowest in at least five years.
Japan's Nikkei 225 Stock Average gained 0.8 percent to 12,362.89, after closing yesterday for a holiday. Taiwan's Taiex index surged, poised for its biggest weekly advance this year, on speculation tomorrow's presidential election will lead to improved ties with China and boost growth.
Trading Volumes
Markets including Hong Kong, Australia and Singapore are shut today for holidays. Trading on the Tokyo Stock Exchange was the lowest since at least Feb. 6.
The Standard & Poor's 500 Index added 2.4 percent in the U.S. yesterday, capping the first weekly advance in a month. Fannie Mae and Freddie Mac had their biggest three-day gain on prospects the companies will expand their mortgage investments after their surplus capital requirement was cut.
Mitsubishi UFJ added 2.2 percent to 872 yen. Sumitomo Mitsui Financial Group Inc., Japan's second-largest bank, gained 1.9 percent to 691,000 yen. Kookmin Bank, South Korea's largest, advanced 2.6 percent to 51,800 won in Seoul.
Tokyo Electric, Asia's largest utility company, rose 2.1 percent to 2,635 yen. Kansai Electric Power Co., Japan's second- biggest power producer, advanced 2.2 percent to 2,510 yen.
Crude oil dropped 8.9 percent from its March 17 record and settled at $101.84 a barrel in New York yesterday. A measure of six metals traded on the London Metal Exchange, including copper and nickel, fell 2.5 percent. Gold slumped 8 percent this week, the most since August 1990, after hitting a record $1,033.90 also on March 17.
Gold Producers
Shandong Gold, China's No. 2 publicly traded gold mining company, plunged 9.5 percent to 155.50 yuan. Zhongjin Gold Co., the nation's largest, fell 7.7 percent to 83.98 yuan. Sumitomo Metal Mining Co., Japan's biggest gold producer, dropped 7.5 percent to 1,782 yen.
Sompo Japan Insurance Inc., the country's third-biggest property and casualty insurer, gained 4.9 percent to 948 yen, after raising its full-year dividend by one fourth. Millea Holdings Inc., Japan's largest insurer, gained 3 percent to 3,830 yen.
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