Asian shares up on rescue plan

ASIAN stocks have risen for a second week after the United States government announced a plan to limit defaults on subprime mortgages, easing concern the region's largest export market will suffer a recession.

Mizuho Financial Group Inc, Japan's second-largest publicly traded bank, and Bank of East Asia, Hong Kong's third largest, jumped after President George W. Bush said some borrowers will be able to refinance or freeze interest rates on adjustable-rate loans, according to Bloomberg News. Samsung Electronics Co led exporters higher following stronger-than-expected US data on productivity and jobs.

The US government's measures "will stop their poor people from becoming homeless, halt the drop in property prices, and help prop up spending," said Yang Jeung Won, who oversees the equivalent of US$7.6 billion at Samsung Investment Trust Management Co in Seoul. "There are expectations that the US economy will be able to ease itself into a soft landing."

The MSCI Asia Pacific Index added 1.6 percent to end at 164.51 last Friday, after surging 4.9 percent during last week. Eight of the 10 industry groups tracked advanced, lifting the benchmark to its highest since November 7. Japan's Nikkei 225 Stock Average gained 1.8 percent to 15,956.37 last week. Benchmarks advanced around the region, except for Sri Lanka.

Mizuho rose seven percent to 637,000 yen (US$5,715) last week. Bank of East Asia surged 13.8 percent to HK$53.90 (US$6.91).