March 12 (Bloomberg) -- Asian stocks rose for a second day, extending a global rally, after the U.S. Federal Reserve said it will pour as much as $200 billion into the financial system to revive lending among banks.

Commonwealth Bank of Australia climbed in Sydney by the most in more than six weeks. Toyota Motor Corp., which gets 37 percent of its sales in North America, and BHP Billiton, the world's largest mining company, gained on speculation the U.S. central bank's plan will revive demand.

The MSCI Asia Pacific Index surged 1.7 percent to 140.19 as of 7:20 p.m. in Tokyo. All of the gauge's 10 industry groups advanced, with almost three stocks climbing for each one that fell. Financial stocks, the worst performing group this year, provided the biggest lift today.

``The Fed's move will restore confidence,'' said Yoji Takeda, who helps manage about $1.1 billion at RBC Investment (Asia) Ltd. in Hong Kong. ``The outlook for the financial market has been stabilized for the time being. There are rising expectations financial companies won't need to further write down their assets.''

Japan's Nikkei 225 Stock Average added 1.6 percent to 12,861.13 as the cost to protect the country's corporate debt from default fell from a record. Australia's S&P/ASX 200 Index climbed 2.4 percent, the biggest jump since Feb. 14.

All markets in Asia rose except China, which declined amid concern the government will raise interest rates to rein in inflation that's at an 11-year high. Malaysia's key stock index rebounded for a second day from its biggest decline in a decade, after the country's ruling coalition was returned to power with a reduced parliamentary majority.

Coordinated Effort

Japan's Komatsu Ltd. surged after bigger rival Caterpillar Inc. raised a sales forecast. Shanghai International Airport Co. slumped on concern a change in airport fees will cut revenue.

The U.S. Standard & Poor's 500 Index yesterday climbed the most since October 2002 after the Fed said it plans to lend up to $200 billion in Treasuries in exchange for debt that includes mortgage-backed securities. The Fed coordinated the effort with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems.

Futures on the S&P 500 gained 0.4 percent today.

The MSCI's Asian gauge is still down 19 percent from its Nov. 1 record on fears the U.S. will enter a recession amid increasing losses linked to investments in the country's mortgage industry. Banks worldwide have recorded almost $190 billion in writedowns and credit losses stemming from the collapse of the subprime-mortgage market.

Global Rally

Commonwealth Bank, Australia's second biggest, gained 5.5 percent to A$41.82, the most since Jan. 25. Babcock & Brown Ltd., Australia's second-largest securities company, jumped 12 percent to A$15, the second-biggest percentage gain on MSCI's Asian index. The stock had lost 51 percent this year through yesterday.

``There's huge anxiety regarding the financials and to some extent those fears have been wiped away,'' said Soichiro Kono, a fund manager at Norinchukin Zenkyoren Asset Management Co. in Tokyo, which manages about $10 billion in assets.

Mitsubishi UFJ Financial Group Inc., Japan's No. 1 publicly traded bank, gained 4.7 percent to 906 yen, the most since Jan. 25. Sumitomo Mitsui Financial Group Inc., the second-largest bank in Japan, climbed 6.4 percent to 731,000 yen.

HSBC Holdings Plc, Europe's largest bank by market value, rose 1.9 percent to HK$125.20 in Hong Kong, following a 2.7 percent advance in its London shares yesterday.

Lower Rates

``The Fed's now pulling everything out of its bag,'' said Michael Foo, who helps manage $300 million as Singapore-based head of portfolio management at Clariden Leu AG. ``With the credit markets in a logjam situation, the Fed has to do more, since dropping interest rates doesn't seem to have helped.''

The U.S. central bank has cut its key rate by 2.25 percentage points since Sept. 18 to 3 percent to bolster growth. Gross domestic product expanded 0.6 percent in the fourth quarter, slower than 4.9 percent in the previous three months.

Odds the rate will be cut to 2.25 percent at a Fed policy meeting next week increased to 62 percent from 54 percent a week ago, futures trading shows.

Toyota climbed 1.9 percent to 5,410 yen. Nintendo Co., the handheld game-console maker that gets 37 percent of its sales in the Americas, rose 2.3 percent to 53,900 yen. BHP, the world's biggest mining company, added 3.4 percent to A$36.80.

Komatsu, the world's second-biggest supplier of earthmoving equipment, rose 3.6 percent to 2,625 yen, the biggest jump since Feb. 25. Caterpillar raised its 2010 revenue forecast by a fifth.

Doosan Heavy Industries & Construction Co., the world's largest maker of plants that purify seawater for drinking, advanced 4.1 percent to 128,000 won, the most since Feb. 21. Peru's state gazette El Peruano reported the South Korean company plans to build two seawater desalination plants in Lima, Peru's capital.

Shanghai International Airport, which runs China's second- busiest airport, tumbled 10 percent to 26.79 yuan, the most since March 2006. A new fee structure at the country's airports will lower sales by 10 percent, the company said.

To contact the reporters for this story: Chua Kong Ho in Shanghai on kchua6@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net.

Last Updated: March 12, 2008 06:21 EDT