Nov. 16 (Bloomberg) -- European stocks rose to a 13-month high after the Asia-Pacific Economic Cooperation forum pledged to maintain stimulus spending, Japan’s economy expanded more than forecast and U.S. retail sales rebounded.

BHP Billiton Ltd. and Rio Tinto Group led basic-resource producers higher as commodities advanced. ThyssenKrupp AG, Germany’s largest steelmaker, added 4.5 percent after announcing the sale of its Safway U.S. scaffolding unit. Tandberg ASA, the world’s second-biggest maker of videoconferencing equipment, surged 3.6 percent after Cisco Systems Inc. boosted its takeover offer to $3.4 billion.

The Dow Jones Stoxx 600 Index climbed 1.4 percent to 251.34, the highest close since Oct. 3, 2008. The gauge has advanced 59 percent since March amid signs government spending and record-low interest rates are helping to drag the economy out of recession.

“We’ll continue to have good signs from the economy,” said Charles Dautresme, a strategist at Axa Investment Management in Paris, which oversees about $753 billion. “We’re optimistic about stocks. The rally should continue with positive elements from the economy and profits revised higher for 2010.”

European stocks have risen for eight of the past nine days as the Group of 20 nations agreed to maintain stimulus efforts and earnings at companies from Credit Agricole SA to Holcim Ltd. beat analysts’ estimates.

‘Durable’ Growth

APEC leaders, who represents 54 percent of the global economy, said over the weekend they will keep measures designed to stimulate the economy until there is “durable” growth. Japan’s Cabinet Office said the world’s second-biggest economy grew at an annual 4.8 percent rate in the third quarter, topping the 2.9 percent gain forecast by economists.

A Commerce Department report today showed U.S. retail sales advanced more than anticipated in October as demand for automobiles climbed.

The U.S. economic recovery will be stronger than most forecasters anticipate, with job growth coming back faster, Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc., said in an interview Bloomberg Radio in New York. LaVorgna predicted the economy will expand at an average 4 percent pace next year, compared with about 2.6 percent forecast by economists surveyed by Bloomberg this month.

National benchmark indexes rose in 14 of the 18 western European markets. The U.K.’s FTSE 100 climbed 1.6 percent and Germany’s DAX surged 2.1 percent. Greece’s ASE Index slumped 3.3 percent, led by banking stocks.

Mining Shares

Basic-resources shares advanced the most among the 19 industry groups in the Stoxx 600. BHP Billiton, the world’s largest mining company, added 2.6 percent to 1,866 pence and Rio Tinto, the world’s third-biggest mining company, soared 5.5 percent to 3,305 pence as copper, zinc and lead increased on the London Metal Exchange.

Randgold Resources Ltd., a producer of gold in Mali, jumped 4.8 percent to 4,934 pence and Petropavlovsk Plc, the third- largest producer of the precious metal in Russia, added 3.2 percent to 1,305 pence as gold climbed to a record.

Lonmin Plc, the world’s third-largest platinum producer, rallied 9.3 percent to 1,740 pence. Chief Executive Officer Ian Farmer said automakers, who use the metal in catalytic converters to cut exhaust fumes, are restocking platinum.

ThyssenKrupp rose 4.5 percent to 24.90 euros. The steelmaker is selling its Safway unit to Odyssey Investment Partners LLC for an undisclosed price as it seeks to cut debt.

JPMorgan Chase & Co. upgraded the shares to “overweight” from “neutral,” saying the steelmaker’s restructuring efforts in combination with an estimated recovery in the steel market next year represent “a compelling investment.”

Tandberg Gains

Tandberg surged 3.6 percent to 163.2 kroner. Cisco raised its bid for Tandberg ASA to 19 billion kroner ($3.4 billion), or 170 kroner a share, after the Norwegian company’s shareholders said its offer was too little.

Takeovers have been increasing as government stimulus measures help to ease credit markets. So far this month, $144 billion of acquisition deals have been announced, compared with $67 billion in the whole of November 2008, according to Bloomberg data.

PSA Peugeot Citroen, Europe’s second-largest carmaker, climbed 4.5 percent to 25.44 euros, leading a measure of auto stocks to the second-steepest advance on the Stoxx 600. Renault SA, France’s second-biggest automaker, advanced 3.2 percent to 33.65 euros.

Car Sales

European car sales jumped 11 percent in October, the biggest gain in more than three years, led by a recovery in demand from U.K. and Spanish consumers. New car registrations rose to 1.26 million vehicles from 1.14 million a year earlier, the Brussels-based European Automobile Manufacturers’ Association said.

Daimler AG surged 4.4 percent to 35.81 euros. Aabar Investments PJSC is in talks to raise its stake in the world’s second-largest maker of luxury cars to 15 percent from 9.1 percent, Khadem Abdulla Al-Qubaisi, the chairman of the Abu Dhabi government-backed investor said.

Yara International ASA increased 5.1 percent to 209.8 kroner. The world’s biggest fertilizer maker was upgraded to “buy” from “hold” at Citigroup Inc., which said “nitrogen fertilizer demand should be robust in 2010.”

Hennes & Mauritz AB, Europe’s second-largest clothing retailer, lost 3.6 percent to 420.5 kronor after reporting a sixth straight monthly decline in same-store sales.

Greek Banks Drop

National Bank of Greece SA, the country’s biggest lender, sank 6.8 percent to 22.62 euros and EFG Eurobank Ergasias SA, the second-largest, slid 7.1 percent to 9.57 euros, the steepest drop since June.

Greece’s central bank asked domestic lenders to outline potential funding sources in coming months as the European Central Bank begins to tighten the liquidity it provides to Europe’s banking system, Euro2day reported. In a letter to the institutions, the Athens-based central bank said Greek lenders as a whole borrowed amounts that were proportionally greater to other countries in the 16-nation euro area, the Web site said.

In a statement after the close of trading in Athens, the central bank said it had advised a number of commercial lenders to be more “prudent” in participating in the ECB’s 12-month liquidity offerings in December.

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

Last Updated: November 16, 2009 12:23 EST