Asian stocks advanced the most since November and emerging-market currencies rallied as corporate earnings beat expectations and reports signaled the global economy is recovering.
The MSCI Asia Index surged 1.9 per cent to 118.62 at 5:08 p.m. in Tokyo. The yen and Treasuries fell before reports today that economists said will show UK jobless claims slid and US manufacturing accelerated, boosting the appeal of higher- yielding assets.
Credit risk slid after Greek Finance Minister George Papaconstantinou said there's no need for a European Union bailout. The Dow Jones Stoxx 600 gained 0.9 per cent to 246.50. Standard & Poor's 500 futures rose 0.3 per cent.
Improved earnings at Barclays Plc and faster-than-estimated growth in New York manufacturing spurred optimism the global economic recovery will be sustained. The MSCI Asia Pacific Index is down 8.2 per cent from a 17-month high on Jan. 15 on speculation central banks will tighten monetary policy and governments will struggle to curb deficits.
"The market's focus has been shifting between concern over sovereign debt and clear signs of an emerging global recovery," said Matt Riordan, who helps manage about $5 billion at Paradice Investment Management in Sydney. "Today, the recovery story is winning out. The data globally has been pretty positive and the reporting season has been full of positive surprises."
Japan's Nikkei 225 Stock Average advanced 2.7 per cent. Australia's S&P/ASX 200 Index rose 2.2 per cent and Hong Kong's Hang Seng Index jumped 1.5 per cent. The S&P 500 Index climbed 1.8 per cent yesterday.
BLOOMBERG