Asian stocks rose Tuesday, reversing earlier declines, on speculation that minutes from a Federal Reserve meeting will show the U.S. economy, the region’s biggest overseas market, can weather a slump in values of homes and subprime mortgages.
“Is subprime going to drag the U.S. economy into recession? I don’t think so,” said Mona Chung at Daiwa Asset Management Ltd. in Hong Kong. “Some shares have already dropped to very attractive levels.”
The Morgan Stanley Capital International Asia Pacific index added 0.2 percent, rallying from an earlier decline of as much as 2.6 percent. The index is still down 7.8 percent this month.
Japan’s Nikkei 225 index rose 1.1 percent after rebounding from a 1.9 percent slide. Key indexes in Hong Kong, China and Singapore also climbed, while Taiwan’s was little changed.
EUROPEAN STOCKS HIGHER: European stocks rebounded from a three-month low, led by chemical producers and carmakers.
The Dow Jones Stoxx 600 Index added 1.1 percent. The index has retreated 7.7 percent this month on increasing concern that losses tied to U.S. subprime mortgages will spill over to the broader economy.
National benchmarks rose in 14 of the 18 Western European markets.
The Stoxx 50 advanced 1 percent, while the Euro Stoxx 50, a measure for the euro region, rose 1.2 percent.
