Asian Stocks Snap Six-Day Loss on Bank Rescue Bill Speculation

Asian stocks climbed, snapping a six- day losing streak, on speculation the U.S. Senate will approve a $700 billion bank rescue plan to revive credit markets and support the global economy.

Westpac Banking Corp., Australia's third-largest bank, rallied 6.7 percent as lawmakers reconsidered opposition to the package that gave U.S. shares the largest drop in more than two decades. Rio Tinto Group surged 12 percent after Australian regulators said they won't oppose BHP Billiton's takeover. Daikin Industries Ltd. dropped as Japan's manufacturers turned pessimistic on the economy for the first time in five years.

``The very expectation U.S. politicians might do something is proving positive for markets,'' said Troy Angus, who helps manage $3.1 billion at Paradice Investment Management in Sydney. ``The financial crisis might abate, but we still have the impact on the real economy to work its way through worldwide.''

The MSCI Asia Pacific Index climbed 1.7 percent to 108.79 as of 1:51 p.m. in Tokyo, with financial shares accounting for 37 percent of the advance. The gauge lost 8.6 percent in the previous six days as the failures of Washington Mutual Inc. and Bradford & Bingley Plc, record-high bank borrowing costs and the rejection of the rescue plan rattled investor confidence.

Japan's Nikkei 225 Stock Average gained 1 percent to 11,375.93. Most markets in Asia rose. China, Hong Kong, Indonesia, the Philippines, Malaysia and Singapore were shut for holidays.