Asian stocks rose, led by finance companies and raw-materials producers, amid speculation takeovers will increase and as commodity prices rose, Bloomberg reported.
Mitsui Sumitomo Insurance Group Holdings Inc. jumped 7.7 percent after people familiar with the matter said the company's in discussions to merge with two competitors. Elpida Memory Inc., Japan's No. 1 memory chipmaker, surged 15 percent after saying it has begun merger talks with Taiwanese rivals. BHP Billiton Ltd., the world's biggest mining company, gained 1.6 percent in Sydney, after oil and copper futures rose for a second day.
The MSCI Asia Pacific Index added 0.4 percent to 87.74 as of 9:48 a.m. in Tokyo, with seven of 10 industry groups advancing. The global financial crisis has dragged the gauge down by 44 percent this year, putting it on course for the worst annual performance in its two-decade history.
"If you see mergers it's a good sign," said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital Investors, which manages about $85 billion. "It shows that companies are starting to understand that there's value out there."
Japan's Nikkei 225 Stock Average lost 0.3 percent, while the broader Topix index added 0.2 percent. South Korea's Kospi Index lost 1.9 percent as Hynix Semiconductor Inc. tumbled on a Standard & Poor's credit-rating downgrade. Markets in Indonesia, Malaysia, and the Philippines are closed for holidays.
In New York, the Standard & Poor's 500 Index added 0.5 percent on Dec. 26. GMAC LLC's conversion to a bank spurred a rally in General Motors Corp. Trading volume there was less than half the three-month average.