Dec. 2 (Bloomberg) -- Asian stocks rose for a third day, lifting the MSCI Asia Pacific Index to a six-week high, as gold surged to a record, BlueScope Steel Ltd. said demand is improving and Nissan Motor Co. posted higher U.S. sales.

Zijin Mining Group Co., China’s largest gold company, gained 3.4 percent in Hong Kong, while Newcrest Mining Ltd., Australia’s No. 1 producer, added 4 percent in Sydney. BlueScope, Australia’s largest steelmaker, jumped 2.8 percent after saying it will boost production capacity in Indonesia. Nissan, which gets 35 percent of its sales in North America, advanced 2.5 percent in Tokyo after its U.S. vehicles sales surged 21 percent last month.

The MSCI Asia Pacific Index rose 0.4 percent to 119.85 as of 7:16 p.m. in Tokyo, the highest level since Oct. 21. An index of material producers rose 1.3 percent, the most of 10 industry groups. The broader MSCI gauge has climbed 70 percent from a five-year low on March 9 on signs stimulus measures were reviving global growth.

“Encouraging economic data and an ongoing commitment from governments to support economies have served to buoy investor confidence,” said Tim Schroeders, who helps manage $1.1 billion at Pengana Capital Ltd. in Melbourne. “Investor appetite for risk has increased, and that has also generated a renewed demand for commodities.”

China’s Shanghai Composite Index rose 1.1 percent and Hong Kong’s Hang Seng Index advanced 1.2 percent. China Vanke Co., the nation’s biggest developer by market value, climbed 2.2 percent in Shenzhen after Caijing Magazine said the government will extend support for the property market.

Dubai World

Japan’s Nikkei 225 Stock Average added 0.4 percent as the central bank said it will inject 1 trillion yen ($12 billion) into markets. Panasonic Corp., the world’s biggest maker of home electronics, gained 1.9 percent after UBS AG recommended investors buy the stock.

Australia’s S&P/ASX 200 Index gained 0.9 percent. South Korea’s Kospi Index climbed 1.4 percent. LG Chem Ltd., the country’s No. 1 chemicals maker, surged 3.7 percent after product prices rose.

Futures on the U.S. S&P 500 Index added 0.1 percent. The gauge rose 1.2 percent yesterday as Chinese manufacturing grew at the fastest pace in five years and as concerns over Dubai World eased. In addition, a report showed pending sales of U.S. existing homes unexpectedly increased in October.

The MSCI Asia Pacific Index has gained 5.2 percent in the past three days amid optimism the region’s companies will be sheltered from losses related to Dubai World, which last week sought to restructure its debt. Dubai World is seeking to delay payments on less than half its $59 billion of liabilities, easing the potential damage to banks recovering from $1.7 trillion of losses and writedowns from the global crisis.

Higher Valuations

“We’re still quite positive on the Asian markets,” Arnout van Rijn, chief investment officer of Robeco Hong Kong Ltd., told Bloomberg Television. “Dubai to me is a blip. It looks like there is an over exaggeration.”

Stocks in the MSCI Asia Pacific Index are valued at an average 22 times estimated earnings, compared with 18 times for the S&P and 16 times for Europe’s Dow Jones Stoxx 600 Index.

Zijin, which yesterday agreed to buy a stake in Indophil Resources NL, climbed 3.4 percent to HK$8.94 as gold for immediate delivery added 1.5 percent to $1,214 an ounce. Bullion earlier climbed to an all-time high of $1,213.88. In Sydney, Newcrest surged 5 percent to A$39.26. Lihir Gold Ltd. gained 4.2 percent to A$3.73.

Rio Tinto Ltd., the world’s third-biggest mining company, advanced 3 percent to A$73.54. BHP Billiton Ltd., the world’s biggest mining company, gained 1.4 percent to A$41.92.

Higher Output

The London Metal Exchange Index, a measure of six metals including copper and zinc, climbed 1.9 percent yesterday, its steepest increase in two weeks. Crude oil gained 1.4 percent to $78.37 a barrel, the highest settlement since Nov. 18.

“The market is running to commodities in anticipation that these will gain from demand for hedging against inflation and that the global economic recovery is under way,” said Jonathan Ravelas, market strategist at Manila-based Banco de Oro Unibank Inc., which manages about $8 billion in trust assets.

Metal prices climbed yesterday as a U.S. manufacturing report fueled speculation demand in the world’s second-largest copper user will advance. The Institute for Supply Management’s new orders index climbed to the highest level since August 2008. A separate index of pending home sales from the National Association of Realtors’ climbed in October, the ninth consecutive gain.

The gathering pace of growth is a legacy of more than $2 trillion of stimulus since September 2008 and interest-rate cuts from governments around the world. The Organization for Economic Cooperation and Development on Nov. 19 raised its forecast for growth in the leading developed economies next year to 1.9 percent from 0.7 percent previously.

Higher Output

BlueScope Steel climbed 2.8 percent to A$2.90 after saying it will invest an additional $40 million to boost its capacity in Indonesia. Residential steel demand has improved, the company said. OneSteel Ltd., Australia’s second-biggest steel producer, added 2 percent to A$3.12.

Posco, South Korea’s largest steelmaker, gained 1.9 percent to 582,000 won. The company said the government of India’s southern state of Karnataka invited it to build a mill, its second planned factory in the country.

Nissan’s U.S. sales boosted the stock by 2.5 percent to 661 yen. Nissan and South Korea’s Hyundai Motor Co. led the first monthly gain in U.S. auto sales without government stimulus in November, signaling buyers are returning to showrooms as the economy stabilizes.

The annual sales rate was 10.93 million vehicles, up from 10.41 million a year earlier, when seasonally adjusted for two fewer sales days in November 2009, industry researcher Autodata Corp. said. Hyundai, which posted a 46 percent surge in sales, added 0.5 percent to 103,000 won, having earlier risen 2.4 percent.

Government Support

Panasonic added 1.9 percent to 1,156 yen. UBS recommended investors “buy” the stock and set a 12-month share-price estimate of 1,500 yen.

China Vanke climbed 2.2 percent to 11.75 yuan, while China Merchants Property Development Co. jumped 8 percent to 33.22 yuan. The government will continue to support the development of the nation’s real-estate market, Caijing Magazine reported on its Web site today, citing an unidentified official at the Ministry of Housing and Urban-Rural Development.

“The key investor concerns now center on policy tightening and stimulus withdrawal,” said Zhou Xi, a Tianjin-based strategist at Bohai Securities Co. “Markets are going to be very sensitive to news about any likely policy actions.”

In Seoul, LG Chem climbed 3.7 percent to 225,000 won. Honam Petrochemical Corp., the nation’s second-largest ethylene maker, gained 1.3 percent to 97,500 won.

Ethylene, a material used to make plastics, chemicals and synthetic fabrics, rose 3.9 percent to $1,070 a metric ton in South Korea as of Nov. 27 from a week earlier, according to PolymerUpdate.com. The spot price was about $855 a ton at the end of September.

To contact the reporters for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net.

Last Updated: December 2, 2009 05:19 EST