Asian stocks surge on back of banks, energy

Asian stocks rose for a fourth day, led by banks and energy companies, as faster-than-expected Australian economic growth and US home sales fueled optimism that the global recession is easing.

Harvey Norman Holdings, Australia’s biggest electronics retailer, climbed 5.8 per cent and Westpac Banking Corp gained 2.2 per cent in Sydney.

New World Development Co gained 3.6 per cent in Hong Kong after the city’s housing sales jumped in May. PetroChina Co climbed 1.9 per cent as oil prices traded near a seven-month high. “There are encouraging signs that people are out there spending,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital in Melbourne. “The question is whether it’s enough. The situation is still fairly precarious.”

The MSCI Asia Pacific Index added 0.5 per cent to 104.84 as of 7:59 pm in Tokyo, taking its four-day advance to 4.7 per cent. The gauge has climbed 49 per cent from a more than five- year low on March 9.

Hong Kong’s Hang Seng Index climbed 1 per cent. Australia’s S&P/ASX 200 Index added 1.6 per cent after the statistics bureau said first-quarter gross domestic product grew 0.4 per cent from the previous quarter.