Asian Stocks Advance, Led by Canon, Mitsubishi

Asian stocks gained, led by Canon Inc. and Mitsubishi UFJ Financial Group Inc., as investors bought shares that fell yesterday on concern a U.S. manufacturing report would drive down equities.

``U.S. markets turned out more stable than people feared yesterday and that prompted buying back of large-cap stocks, although it may only last a couple of days,'' said Yoshihisa Okamoto, who helps oversee $1.9 billion in assets at Fuji Investment Management Co. in Tokyo.

U.S. stocks rose even after the Institute for Supply Management said manufacturing growth in the world's largest economy slowed more than forecast in March.

The Morgan Stanley Capital International Asia-Pacific Index climbed 0.8 percent to 144.47 as of 11:04 a.m. in Tokyo. BHP Billiton Ltd. led resources stocks higher after copper climbed to a four-month high and nickel gained.

The Nikkei 225 Stock Average rose 0.8 percent to 17,162.62. Markets elsewhere in the region gained, except for in South Korea which was little changed.

Canon, the world's biggest digital-camera maker, rose 1.1 percent to 6,300 yen, after falling 1.6 percent yesterday. Mitsubishi UFJ, Japan's biggest lender by assets, climbed 1.5 percent to 1.34 million yen. The stock declined 0.8 percent yesterday. Matsushita Electric Industrial Co., the world's biggest consumer electronics maker, advanced 2.8 percent to 2,420 yen, rebounding from a 0.8 percent loss yesterday.