March 4 (Bloomberg) -- Asian stocks rose as optimism governments will widen efforts to bolster growth offset plunging U.S. auto sales and a contraction in Australia’s economy.

Aluminum Corp. of China Ltd. jumped 5.6 percent in Shanghai as a former statistics chief said Premier Wen Jiabao will announce a new stimulus package. Seven & I Holdings Co., Japan’s largest retailer, climbed 3.2 percent as a central bank official recommended “bold” policy measures. Toyota Motor Corp., the world’s biggest carmaker, lost 2 percent in Tokyo after U.S. sales sank by a record last month.

“The global recession demands rapid responses,” said Hiroshi Morikawa, a strategist at Tokyo-based MU Investments Co., which manages about $14 billion. “China is one of the few spots in the world where we can see signs of recovery.”

More than three stocks gained for each one that fell on the MSCI Asia Pacific Index, which added 0.5 percent to 72.21 at 2:21 p.m. Tokyo time. The gauge slumped 19 percent in 2009, extending last year’s record 43 percent tumble, as recessions in the world’s largest economies hurt earnings at exporters such as Toyota and Honda Motor Co.

Japan’s Nikkei 225 Stock Average gained 0.9 percent to 7,293.60. China’s Shanghai Composite Index rose 3.6 percent. Australia’s S&P/ASX 200 Index fell 1.6 percent, after the statistics office said gross domestic product shrank in the fourth quarter for the first time in eight years.

Hon Hai Precision Industry Co., the world’s largest contract maker of electronics, climbed 4.9 percent in Taipei, leading gains among technology shares, amid speculation orders are picking up. China Life Insurance Co., the nation’s biggest insurance company, rose 2.4 percent in Hong Kong after its chairman said the company is studying acquisitions.

Government Policies

Futures on the Standard & Poor’s 500 Index added 0.9 percent. The benchmark gauge fell 0.6 percent yesterday after Bernanke said in testimony before the Senate Budget Committee that policy makers may need to expand aid to the banking system beyond the $700 billion already approved.

Governments from the U.S. to China and Australia have sought to introduce policies this year to bolster their economies. China’s Premier Wen will announce a new stimulus package tomorrow, former Statistics Bureau head Li Deshui said today, without elaborating. The annual meeting of the National People’s Congress begins in Beijing tomorrow.

In Shanghai, Aluminum Corp. jumped 5.6 percent to 9.31 yuan. Jiangxi Copper Co. surged 8 percent to 16.42 yuan as the price of the metal advanced the most in three weeks.

‘Bright Spots’

Stocks also rose as the Purchasing Manager’s Index, a gauge of manufacturing, climbed for a third month. Output and new orders expanded for the first time in five months, signaling that government stimulus is taking effect. A recovery in the first half is “very likely,” central bank Vice Governor Su Ning said yesterday.

“We’re seeing some bright spots in China,” Pauline Dan, chief investment officer at Samsung Investment Trust Management Co. in Hong Kong, which oversees $61 billion. “Domestic consumption seems to be doing better given the government’s pump priming efforts.”

China Shenhua Energy Co., the nation’s biggest coal producer, gained 3.5 percent to 19.09 yuan after saying said net income rose 30 percent last year amid increased production.

In Tokyo, Seven & I climbed 3.2 percent to 2,105 yen. Mitsubishi Estate Co., Japan’s largest developer by market value, gained 3 percent to 985 yen.

Bank of Japan board member Miyako Suda said today the central bank should signal that it’s prepared to take “bold” measures to counter the recession. Japan’s lower-house of parliament approved a bill that will free up about 5 trillion yen ($50 billion) for economic stimulus.

Credit-Related Losses

Toyota slumped 2 percent to 3,000 yen in Tokyo, while Honda dropped 3.5 percent to 2,205 yen.

Toyota’s U.S. sales plummeted 40 percent last month, while Honda posted a 38 percent decline, the companies said yesterday. Overall U.S. auto sales in February dived to the lowest rate since December 1981, according to Autodata Corp.

Hyundai Motor Co., South Korea’s largest automaker, rose 1.7 percent to 49,900 won in Seoul as it managed to limit the drop in sales when it offered car buyers record incentives. Hyundai’s sales fell 1.5 percent.

An index of finance stocks in MSCI’s Asian gauge is the worst performing of 10 industry groups this year as the financial turmoil caused global credit-related losses to swell to more than $1.1 trillion.

Commonwealth Bank of Australia, the country’s biggest mortgage lender, fell 3.6 percent to A$27.27. Australia & New Zealand Banking Group slipped 3.9 percent to A$12.45 in Sydney.

Waiting For Recovery

Gross domestic product fell 0.5 percent in the fourth quarter from the third, when it grew 0.1 percent, the Bureau of Statistics said in Sydney today. The median estimate of economists surveyed by Bloomberg News was for 0.2 percent growth.

“The market has taken another leg down with all the bad data coming through,” said Matt Riordan, who helps manage about $3 billion at Paradice Investment Management in Sydney. “People are waiting for a U.S. recovery to start flowing through to the rest of the world.”

Hon Hai jumped 4.9 percent to NT$71.40 in Taipei after it asked at least 5 percent of employees at its plants in China to return to work to fulfill orders. The outlook for orders in the next one-to-two months isn’t as bad as the company had expected, Chairman Terry Gou said today.

Taiwan Semiconductor Manufacturing Co., the world’s largest maker of customized chips, gained 3.1 percent to NT$46.

China Life rose 2.4 percent to HK$21.35 in Hong Kong. Chairman Yang Chao said yesterday after the market closed that the company is looking at overseas acquisition targets, including banks.

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
Last Updated: March 4, 2009 00:24 EST