Asia Stocks Rebound From 2 Year Low as Europe Seeks Solution to Crisis

Asian stocks rebounded from their lowest level since May 2010 as banks rallied amid speculation that European leaders may find a way to tame the region’s credit crisis.Sumitomo Mitsui Financial Group Inc. (8316), Japan’s No. 2 bank by market value, advanced 2 percent in Tokyo after the European Central Bank was said to be considering restarting covered-bond purchases and further measures to ease monetary conditions. Canon Inc. (7751), the camera maker which depends on Europe for about a third of its sales, rose 2.1 percent. BHP Billiton Ltd. (BHP), the world’s biggest mining company and Australia’s largest oil producer, jumped 2.3 percent in Sydney after crude and copper prices advanced.“Speculation that Europe may take additional monetary easing measures will likely boost shares” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co.The MSCI Asia Pacific Index climbed 1.5 percent to 110.65 as of 9:30 a.m. in Tokyo, its first advance in four days. The measure slumped 7.1 percent last week, the most in almost three years, as concern grew that the global economy is heading for a recession. The declines drove the index into a so-called bear market after falling more than 20 percent from a May 2 high.Japan’s Nikkei 225 (NKY) Stock Average rose 1.7 percent in Tokyo. South Korea’s Kospi Index jumped 3.4 percent. Australia’s S&P/ASX 200 Index gained 2.2 percent in Sydney. New Zealand’s NZX 50 Index added 1.1 percent in Wellington.