Asian stocks rise for fifth day on Fed rate optimism

Asian stocks rose, driving the MSCI Asia Pacific Index toward its longest winning streak since July, as US Federal Reserve signaled it will leave the benchmark interest rate at a record low.

Mitsubishi UFJ Financial Group gained 2.7 per cent in Tokyo as the Bank of Japan said the economic recovery in the world’s second-largest economy remains on track. Sumitomo Corp, which trades commodities, rose 1.8 per cent after oil and metal prices advanced. Caltex Australia Ltd surged 5 per cent in Sydney after Macquarie Group Ltd boosted the oil-refining company’s share forecast. Handset maker HTC Corp climbed 5.5 per cent in Taipei after posting an unexpected profit increase.

The MSCI Asia Pacific Index rose 0.6 per cent to 128.10 as of 7.34 pm in Tokyo, taking a five-day advance to 2.4 per cent. The gauge has climbed 12 per cent from this year’s low on February 8 as improving economic data and a Fed pledge to keep borrowing costs down eased concern that budget deficits in Europe will derail the global economic recovery.