Feb. 26 (Bloomberg) -- Stocks rose in Europe and Asia after the biggest bond insurers kept their top debt ratings, increasing speculation that banks will avert another $70 billion in credit losses. U.S. index futures were little changed.

European shares extended their advance after German business confidence unexpectedly increased. Standard Chartered Plc, the only U.K. bank trading higher than a year ago, rallied more than 6 percent in London as profit beat analysts' estimates. National Australia Bank Ltd. led gains in Asian financial shares. ThyssenKrupp AG jumped as Credit Suisse Group lifted its price forecast for Germany's largest steelmaker.

``We had been worried about the domino effect'' of MBIA Inc. and Ambac Financial Group Inc., said Franck Hennin, who helps manage $5.9 billion at Richelieu Finance in Paris. ``The fact that the bond insurers retained their ratings avoids that. We've had some good news that gives oxygen to the market.''

Europe's Dow Jones Stoxx 600 Index added 1.2 percent to 329.32 at 12:11 p.m., with all 18 industry groups advancing. The MSCI Asia Pacific Index rose 0.3 percent, and futures on the Standard & Poor's 500 Index gained less than 0.1 percent.

The cost of protecting bank debt from default fell the most in two weeks today after S&P kept its AAA ratings on MBIA and Ambac.

The MSCI World Index has retreated 6.9 percent this year on concern losses related to subprime mortgages and an economic slowdown in the U.S. will damp profit growth. Profits at S&P 500 companies are expected to shrink this quarter and next, while analysts have cut their estimates for Stoxx 600 members' 2008 earnings growth to 6.9 percent from 11 percent at the end of last year, Bloomberg data show.

National Markets

National stock indexes rose in all of the 18 markets in western Europe. Germany's DAX added 1.4 percent, while France's CAC 40 increased 0.9 percent. The U.K.'s FTSE 100 climbed 1 percent.

The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 104.1 from 103.4 in January. Economists forecast a drop to 102.9, according to a Bloomberg News survey.

In Asia, Hong Kong's Hang Seng Index gained 1.9 percent, while Australia's S&P/ASX 200 advanced 0.8 percent. Japan's Nikkei 225 Stock Average decreased 0.7 percent.

Standard Chartered climbed 6.7 percent to 1,685 pence. Profit increased 25 percent to $2.84 billion in 2007, driven by lending in India, Hong Kong and the Middle East. That surpassed analysts' estimates.

Axa, ING

Axa, Europe's second-largest insurer, gained 3.3 percent to 23.79 euros. ING Groep NV, the biggest Dutch financial-services provider, rose 2.7 percent to 23.90 euros.

National Australia Bank, the country's largest, climbed 3.4 percent to A$30.11.

S&P yesterday said it was no longer reviewing MBIA and affirmed Ambac's AAA rating pending its ability to raise new capital. A downgrade would stymie their ability to guarantee debt and strip the AAA stamp from $1.2 trillion of insured bonds.

Banks stand to lose as much as $70 billion on insured debt they own if the ratings are reduced, according to Oppenheimer & Co. analysts in New York.

``If a solution to bond insurers' problems may be found, one of the main concerns of the stock market has been eliminated,'' said Antoine Beaugendre, an equity strategist at Societe Generale SA in Paris. ``This gives a breath of fresh air to the market.''

Default Swaps

Credit default swaps on the benchmark Markit iTraxx Financial index of 25 European banks and financial institutions dropped as much as 11 basis points to 98.5, the biggest decline since Feb. 11, JPMorgan Chase & Co. prices show.

ThyssenKrupp advanced 3.3 percent to 38.27 euros. Credit Suisse lifted its price estimate to 75 euros from 61 euros.

``There should be no earnings squeeze in steel, and early cycle stainless and services businesses are recovering from low points,'' the analysts wrote.

In South Korea, Posco advanced 4.1 percent to 535,000 won. Asia's third-largest steelmaker is ``very likely'' to raise prices for its products as early as March, Hyundai Securities Co. said in a report.

Home Depot Inc., the world's largest home-improvement retailer, said fourth-quarter profit fell after the biggest housing slump in a quarter century slowed consumer demand. The shares fell 54 cents to $28.28 in Germany.

Puma, Persimmon

Puma AG jumped 5.1 percent to 243.58 euros. The sporting- goods maker controlled by PPR SA said fourth-quarter profit rose 17 percent to 38.3 million euros, more than analysts estimated, after new products fueled sales growth in Europe and Asia. PPR added 2.5 percent to 95.62 euros.

Persimmon Plc rose 1.6 percent to 776 pence. The U.K.'s largest homebuilder by market value reported a 4.3 percent gain in full-year profit to 413.5 million pounds ($813 million).

Wacker Chemie AG lost 5.1 percent to 144.50 euros. UBS managed the sale of a stake in Wacker Chemie, the world's third- largest maker of silicon wafers used in microchips, worth about 51.5 million euros. UBS didn't identify who commissioned the sale.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: February 26, 2008 07:15 EST