TOKYO (Bloomberg) -- Asian stocks climbed for a third day after Japanese Prime Minister Taro Aso more than doubled stimulus spending and Chinese lending jumped by a record.

Mazda Motor Corp., Japan’s fifth-largest automaker, rose 4.7 percent as the nation’s stimulus plan includes provisions for paying subsidies to those who purchase new cars. Condominium developer Haseko Corp. surged 16 percent in Tokyo on tax breaks for homebuyers. China Vanke Co., the country’s largest developer by value, gained 2.5 percent after new lending surged in March.
“Aso’s plan is likely to ease concern about corporate financing in that it includes not only measures to boost lending but also to stimulate demand,” said Hiroshi Morikawa, a senior strategist at MU Investments Co., which manages about $14 billion. “Investors’ expectations on China are huge, because it’s one of the few regions that can possibly withstand this global recession.”
The MSCI Asia Pacific Index climbed 0.6 percent to 88.51 as of 1:54 p.m. in Tokyo, the highest since Jan. 12. The index has rallied 25 percent since dropping to a more than five-year low on March 9.
Japan’s Nikkei 225 Stock Average rose 0.2 percent to 8,986.06 after losing as much as 0.9 percent. Indonesia’s Jakarta Composite Index surged 4.9 percent after elections boosted the position of the country’s president. Markets were closed in New York on April 10 for the Good Friday holiday. Hong Kong, Australia and New Zealand are closed on Monday.
Thailand protests
Thailand, where protests forced the cancellation of the Association of Southeast Asian Nations summit, will be closed until April 16 for New Year’s holidays. Protestors stepped up rallies to oust Prime Minister Abhisit Vejjajiva over the weekend.
MSCI’s Asian gauge has surged 25 percent from a more than five-year low on March 9 as governments and central banks expanded measures to stem the global recession. The rally in global equities has been “very powerful,” though problems in financial markets may cause indexes to revisit lows, investor Jim Rogers said.
“We may have seen a bottom but I expect more bottoms to come,” Rogers, chairman of Singapore-based Rogers Holdings, said in an interview with Bloomberg TV.
On April 10, Japan’s Aso unveiled a record 15.4 billion yen ($153 billion) stimulus plan, his third since taking office and bringing total spending to 25 trillion yen. The proposal includes a 1.6 trillion yen investment in low-carbon technology, 1.9 trillion yen on employment measures and 370 billion yen for subsidies of new car purchases.
------Upside risk
“Our economists now believe that there may be some near- term upside risk to fiscal year 2009 growth forecasts,” Kathy Matsui, chief equity strategist at Goldman Sachs Group Inc., wrote in an April 10 report on the effect of Japan’s spending plan. “We believe the government is finally committed to prevent the market from breaking new lows in order to protect the financial system.”
Mazda advanced 5.5 percent to 270 yen. Haseko Corp., a condominium developer, surged 16 percent to 73 yen, as the stimulus proposal provides a gift tax reduction for purchases or reforms of homes. Orix Corp., the nation’s largest non-bank lender, gained 4.9 percent to 5,120 yen. Pioneer Corp., a maker of audio-visual gear, advanced 8.2 percent to 317 yen.
China’s banks, which are mostly state-owned, have already met the bulk of the government’s target of at least 5 trillion yuan of new loans this year. The People’s Bank of China said the government’s stimulus package is showing initial results and it will continue to ensure sufficient liquidity after new loans surged sixfold to a record in March.
U.S. “progress”
China Vanke climbed 2.3 percent to 8.58 yuan in Shenzhen. Citic Securities Co., the country’s biggest securities firm by market value, added 1.6 percent to 25.96 yuan. China’s securities firms posted a 69 percent increase in commissions in the first quarter from the three months ended Dec. 31, Shanghai Securities News reported, citing its own estimates.
President Barack Obama said on April 10 the U.S. economy is “starting to see progress” toward recovery. He cited a 20 percent increase in government-backed loans to small business in the past month as one sign the economy is on the rebound. Futures on the Standard & Poor’s 500 Index retreated 0.6 percent on Monday.
Hyundai Motor Co., South Korea’s biggest carmaker, rose 2.5 percent to 66,300 won. Kia Motors Corp., an affiliate, climbed 4.2 percent to 10,100 won. South Korea will provide 500 billion won ($375 million) in research and development loans to aid the struggling industry, according to an e-mailed statement on Sunday.
Indonesia election
PT Telekomunikasi Indonesia and PT Indosat, Indonesia’s two biggest phone companies, climbed at least 3.5 percent after polls indicated President Susilo Bambang Yudhoyono’s party may double its seats in parliament, opening the door for more investment.
Satyam Computer Services Ltd. rose 12 percent to 52.8 rupees in Mumbai on expectations the company will announce a winning bidder for acquiring control of the fraud-hit software- services provider.