Asian shares rise on optimism for banks

Asian stocks rose, led by banks and technology companies, on optimism government measures worldwide will ease the financial crisis and stem the deterioration in the global economy.

Westpac, Australia’s largest bank by market value, gained 3pc after the central bank slashed its inflation forecast, raising speculation it may cut interest rates.

Mizuho Financial, Japan’s second-largest bank, gained 2.3pc as a US Treasury official said details of a financial-recovery plan will be announced in three days. Lenovo, the world’s fourth-largest personal-computer maker, surged 10pc in Hong Kong after a management reshuffle.

“Fiscal and monetary stimulus policies have helped improve sentiment,” said Binay Chandgothia, who oversees about $1.5bn as chief investment officer at Principal Asset Management Co. in Hong Kong. “These measures will benefit the economy although there will be more earnings downgrades.”

The MSCI Asia Pacific Index rose 0.8 percent to 83.18 at 2:32 p.m. in Tokyo, with three stocks rising for each that fell.

The gauge has fallen 7.1pc in 2009, extending last year’s record 43pc tumble, as the credit crisis dragged the world’s biggest economies into recession.