Asia stocks rally after weekly loss

Asian stocks rose today to pare a weekly loss after Australia's central bank more than tripled its economic-growth forecast and…

Asian stocks rose today to pare a weekly loss after Australia's central bank more than tripled its economic-growth forecast and reports showed US unemployment claims and worker productivity beat estimates.

The MSCI Asia Pacific Index gained 1 per cent to 115.88 as of 4.15pm local time in Tokyo, with twice as many stocks advancing as declining.

The gauge has fallen 0.5 per cent this week. However, it has climbed 29 per cent this year, on course for its steepest annual increase since 2003, as governments around the world pumped money into the financial system to revive the global economy.

Japan's Nikkei 225 Stock Average added 0.7 per cent to 9,789.35. China's Shanghai Composite Index rose 0.3 per cent and Hong Kong's Hang Seng Index gained 1.6 per cent. Australia's S&P/ASX 200 Index climbed 1.9 per cent, the sharpest advance in the Asia-Pacific, and most of the region's benchmark indexes gained.

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In the US yesterday, the Dow Jones Industrial Average surged 2.1 per cent, the most since July

. Data from the Labor Department showed initial joblessness claims dropped to 512,000 last week, the lowest level since January, and worker productivity climbed at a 9.5 per cent annual rate in the third quarter, the fastest pace in six years. Labor costs also fell, signaling companies may start hiring again.

Futures on the Standard & Poor's 500 Index were little changed today.

Bloomberg