Asian stocks rose, led by financial companies and utilities, and US futures gained on signs governments are succeeding in efforts to unlock credit markets.
Mitsubishi UFJ Financial Group Inc. added 2 per cent and Westfield Group, the world's biggest shopping centre owner by market value, jumped 5.6 per cent.
The benchmark MSCI Asia Pacific Index is set for its first weekly climb since August as government action to shore up banks drove money market rates lower, countering concern the world's economy is heading for a recession.
Tokyo Electric Power Co. climbed 8.2 per cent as oil prices traded at half their July record.
MSCI's Asian index added 0.6 percent to 87.46 as of 2.45 p.m. in Tokyo. Financial and utilities stocks accounted for about two- thirds of the gains. The index, having posted its biggest-ever advance and decline in the past three days, is set to rise 2.2 per cent this week.
Japan's Nikkei 225 Stock Average climbed 1.3 per cent to 8,567.13 the region's biggest advance and set for a 4.5 percent weekly gain. Nippon Telegraph & Telephone Corp. soared after Nikko Citigroup advised investors buy the shares.
Elsewhere, China's CSI 300 Index rose 0.6 per cent. Citic Securities Co. led the nation's brokerages higher on speculation they may be allowed to offer loans for stock purchases.
South Korea's Kospi Index dropped 2 per cent, however, led by KB Financial Group, amid growing concern the nation's banks may struggle to refinance debt. Share
Valuations MSCI's Asian index tumbled 31 per cent in the previous six weeks as credit markets seized up, economies slowed and companies failed, making the region's equities their cheapest ever. Shares on the index traded at 9.76 times earnings yesterday, near a record low reached on October 10.
Stocks had rallied earlier this week after central bankers pledged $2 trillion to rescue financial companies and governments including Australia and Hong Kong guaranteed bank deposits.
Bloomberg