Asian Stocks Advance as Fed Cuts Interest Rates to Record Low

Dec. 17 (Bloomberg) -- Asian stocks rose to a five-week high, led by developers, after the Federal Reserve cut the main U.S. interest rate to as low as zero for the first time and said it will use “all available tools” to stimulate the economy.

“This is a strong statement that the U.S. is doing all it can to support the market and prevent a sharp economic deterioration,” said Masahiko Ejiri, who manages Asian equities at Tokyo-based Mizuho Asset Management Co., which oversees $26 billion. “It’s also a sign that things are getting worse. There will be less room for them to maneuver from here.”

The MSCI Asia Pacific Index climbed 2.7 percent to 89.80 as of 11:42 a.m. in Tokyo. About three stocks rose for each that dropped. The measure has lost 43 percent this year, as the global credit crisis triggered by the collapse of the U.S. housing market pushed the world’s largest economies into recession.