Asian stocks rose after Europe agreed to a rescue plan for Ireland

Asian stocks rose after Europe agreed to a rescue plan for Ireland, countering concern that tensions on the Korean peninsula can be scaled.

Sony Corp., Japan's largest exporter of consumer electronics, rose 2.8 percent in Tokyo after officials of European governments launched the debt tied a lifeline Nomura Ireland and described the action of "buy." Nissan Motor Co., the third largest manufacturer in Japan for the sales that gets about 75 percent of its sales abroad, rose 1.5 percent. Korea Exchange Bank fell 5.9 percent in Seoul as South Korean president said that patience alone over North Korea's provocation.

"Themes are driving global markets right now," said Jason The, who helps manage about $ 2.6 billion to investors Mutual Ltd. in Sydney. "You have the rescue of Ireland, on the one hand and, on the other hand, the threat of war on the other side of the world, which is causing nervousness."

The MSCI Asia Pacific index rose 0.5 percent to 129.62 as of 15:19 in Tokyo, rebounding from three straight weeks of declines. About five stocks rose for every three that fell. The index lost 2.1 percent last week after North Korea fired artillery shells into southern Korea.

Japan's Nikkei 225 Stock Average advanced 0.9 percent, as a European Central Bank governing council member Christian Noyer said in Tokyo that the ECB will keep the emergency measures, if necessary.

Australia S & P / ASX 200 rose 0.4 percent, reversing a loss of up to 0.9 percent, with major banks of the profits. Kospi index in South Korea fell 0.3 percent, while Hong Kong's Hang Seng index little changed. The Shanghai Composite Index fell 0.3 percent in China.

Taiwan's TAIEX index rose 0.7 percent amid speculation that relations with China will improve after the ruling Kuomintang party won a majority in key local elections.

Korean tensions

Future over 500 of Standard & Poor's rose 0.5 percent. The index lost 0.8 percent on Nov. 26 in New York as a stronger dollar weighed on commodity prices and banks fell amid growing concern about Europe, and North Korea. The markets were open for half a day after the Thanksgiving holiday.

European government officials, meeting yesterday in Brussels, Ireland launched a 85 million euros (113 billion) lifeline and reduced the proposed bondholders saddled with losses in the budget crisis in the future, trying to reverse the market sell-off threatening the euro.

ECB's Noyer, who is also governor of the Bank of France, refused to comment on whether the Irish crisis will cause a delay in the ECB's plans to exit non-conventional monetary measures. He did not specify the measures concerned, told reporters in Tokyo today.

Televised address

South Korean President Lee Myung Bak said in a nationally televised speech today that he would build up military in South Korea and North Korea to pay for more provocations.

North Korea "will deal a merciless struggle against military attack on any act of provocation by intruding into its territorial waters," a daily commentary Rodong made on 28 November by North Korea's official Korean Central News Agency. U.S. and South Korean warships led by the aircraft carrier USS George Washington have begun to four days of exercises in the region.

Sony rose 2.8 percent to 2,970 yen in Tokyo. Nissan Motor rose 1.5 percent to 797 yen. Bridgestone Corp., the largest tire manufacturer in the world, gained 2 percent to 1,551 yen.

The yen depreciated to 84.19 against the dollar in Tokyo today, matching its level in New York on 26 November and the lowest level since 28 September. A weaker yen increases the value of foreign earnings in Japanese companies when converted into local currency.

Australian banks

Banks led gains of Australia in Sydney. Commonwealth Bank of Australia, the country's largest lender by market value, rose 2.1 percent to $ 48.57. Westpac Banking Corp., the second largest, advanced 1.9 percent to $ 21.55.

"Our banks and most financial stocks, responded positively to the reduction in perceived risk" after the rescue of Ireland, said Angus Gluski, which manages about $ 350 million at White Funds Management Pty in Sydney .

China Airlines Ltd., the largest airline in Taiwan, led the airline stocks, property and the tallest hotel in Taipei trading after the ruling Kuomintang won three of five seats in municipal elections on 27 November. The stock rose 6.8 percent to NT $ 24.25. EVA Airways Corp., the second largest airline in Taiwan, rose 5 percent to NT $ 34.50. Formosa International Hotels Corp., the largest island hotel operator, rose 5 percent to NT $ 507.

"The cross-strait policies'

"Investors believe that cross-strait policies will continue after the election results and thus bring related actions," said Sam Hsieh, a fund manager based in Taipei at Fuh Hwa Investment Trust Co., who helps oversee the equivalent of $ 8.2 billion.

The MSCI Asia Pacific index rose 7 percent this year to 26 November, compared with gains of 6.7 percent in the S & P 500 and 5 percent in the Stoxx Europe 600 index. Shares in Asia indicator are valued at 14.2 times estimated earnings on average, compared with 14 times for the S & P 500 and 11.9 times for the Stoxx 600.

Korea Exchange Bank fell 5.9 percent to 11,200 won in Seoul. The lender separately signed a preliminary agreement with Hyundai Group for a stake in Hyundai Engineering & Construction Co., Yonhap News reported, without saying where it got the information. GS Engineering & Construction Corp., a South Korean manufacturer, sank 2 percent to 100,000 won.