Nov. 16 (Bloomberg) -- Asian stocks and emerging-markets currencies rose and the dollar began a third week of decline after regional leaders pledged to maintain stimulus measures and Japan’s economy grew faster than economists estimated.

The MSCI Asia Pacific Index climbed 0.7 percent to a three- week high as the Asia-Pacific Economic Cooperation forum said it would keep spending until there was “durable” growth. The Dollar Index lost 0.4 percent to 74.999 as gold advanced to a record. The Indian rupee led gains among Asian currencies after Japan’s gross domestic product expanded at an annual rate of 4.8 percent in the third quarter, compared with the median forecast of 2.9 percent in a Bloomberg survey of economists.

“Nations including the U.S., Japan and China reiterated their commitment to hang on to stimulus measures to stabilize the global economy and financial system,” said Susumu Kato, chief economist at Calyon Securities in Tokyo. “That gave the markets confidence and elicited steady demand for yield.”

The U.S. currency weakened against 15 of its 16 most-traded counterparts as of 6:16 a.m. in London. The dollar lost 0.5 percent to $1.4972 against the euro, extending its decline this year to 6.7 percent as the recovery from the global recession encouraged investors to buy higher-yielding assets.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against six currencies including the euro and yen, extended a two-week drop. The gauge is 0.3 percent from its year-to-date low of 74.774 on Nov. 11.

‘Solid Footing’

The 21-member APEC group said in a statement yesterday the economic recovery isn’t on a “solid footing” yet and pledged to maintain stimulus measures until there is “durable” growth. They didn’t mention currency distortions, which U.S. companies say give China unfair trade advantages.

MSCI’s Asian stock gauge headed toward its sixth advance in seven sessions, led by commodity companies on expectations higher resource prices will boost earnings. Futures on the Standard & Poor’s 500 Index climbed 0.7 percent, signaling an extension of the gauge’s 0.6 percent gain on Nov. 13.

Zijin Mining Group Co., China’s largest gold producer, gained 2.5 in Shanghai while BHP Billiton Ltd., the world’s biggest mining company, added 2.8 percent in Sydney.

Display makers led Taiwan stocks higher after Chi Mei Optoelectronics Corp. and Innolux Display Corp. agreed to merge and create Taiwan’s largest liquid-crystal panel maker. Chi Mei surged by its 6.9 percent daily limit, while Innolux added 2.9 percent.

Shipping shares advanced as the Baltic Dry Index, a measure of shipping costs for commodities, posted its biggest weekly climb in a seven-week winning streak. Mitsui O.S.K. Lines Ltd., operator of the world’s largest merchant fleet, rose 0.8 percent in Tokyo and China Cosco Holdings Co., the biggest operator of dry-bulk ships, climbed 5.1 percent in Shanghai.

Share Sales

Japan’s Nikkei 225 Stock Average reversed losses as optimism about a gain in capital spending overshadowed concern that share sales will dilute shareholder value. Fast Retailing Co. Japan’s biggest clothing retailer, climbed 5.2 percent.

Mitsubishi UFJ Financial Group Inc., Japan’s largest bank by market value, lost 5.5 percent, while Hitachi Ltd., the fourth-largest company in the Nikkei by sales, fell 8.5 percent.

Mitsubishi UFJ may announce Japan’s biggest secondary share sale this week as it prepares for stricter global capital rules, eight of nine analysts surveyed by Bloomberg said. Hitachi will raise as much as 418 billion yen ($4.66 billion) from a sale of securities, according to a filing with Japan’s Finance Ministry.

“Concern about the dilution of shareholder value is weighing on the market,” said Masaru Hamasaki, a strategist at Tokyo-based Toyota Asset Management Co., which oversees the equivalent of $14 billion.

Japan GDP

A government report showed Japan’s capital spending rose 1.6 percent in the three months through September, contributing to the nation’s faster-than-estimated economic growth in the quarter.

“Japan’s GDP was better than forecast which will provide more support for Asian currencies,” said Mitul Kotecha, head of global foreign-exchange strategy at Calyon in Hong Kong. “Risk appetite is picking up again going into this week. We’ll see exports continue to perform well and pick up further.”

The rupee jumped 0.6 percent to 46.09 to the dollar. The ringgit strengthened 0.4 percent to 3.3630 per dollar in Kuala Lumpur. The rupiah appreciated 0.3 percent to 9,345 in Jakarta. The Korean won rose 0.5 percent to 1,154.92 per dollar.

The weakening greenback sent gold prices to a record high as demand increased for the precious metal as a store of value. Crude oil climbed from a one-month low.

Diversifying Portfolios

“The long-term trajectory of the U.S. dollar is down, so that is always going to prompt investors to buy oil and commodities,” said Victor Shum, a senior principal at consultants Purvin & Gertz Inc. in Singapore. “Oil, unlike gold, is limited on the upside by the supply and demand fundamentals. Gold is really the ultimate safe haven.”

Bullion for immediate delivery advanced as much as 0.9 percent to $1,128.78 an ounce, surpassing the peak reached on Nov. 12. Crude oil for December delivery advanced as much as 1.4 percent to $77.33 per barrel.

Foreign direct investment in China climbed for a third month in October from a year earlier as companies bought into a strengthening economic recovery. Investment rose 5.7 percent to $7.1 billion, the Ministry of Commerce said at a briefing in Beijing today.

“Nations in the region don’t want China to falter, as its economy is leading the global recovery,” said Minoru Shioiri, Tokyo-based chief manager of foreign exchange trading at Mitsubishi UFJ Securities Co. “There’s no chance that China will let the yuan appreciate dramatically. The dollar will continue to be under selling pressure versus higher-yielding currencies.”

To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Lilian Karunungan in Singapore at at lkarunungan@bloomberg.net.

Last Updated: November 16, 2009 01:53 EST