Nov. 14 (Bloomberg) -- Asian stocks rose the most in eight weeks, extending a global rally. Toyota Motor Corp. and Canon Inc. climbed after the yen weakened against the dollar and Wal-Mart Stores Inc.'s profit beat estimates, boosting confidence U.S. consumers will keep spending.

Mitsubishi UFJ Financial Group Inc. and National Australia Bank Ltd. paced gains among banks after Goldman Sachs Group Inc. said it doesn't plan significant writedowns on mortgage-related securities, easing concern credit-market losses will spread and helping U.S. stocks rally the most in a month.

``The Wal-Mart result shows the U.S. consumer is still spending,'' said Paul Xiradis, who manages about $8.3 billion at Ausbil Dexia Ltd. in Sydney. ``On the U.S. investment-banking front for the moment things are looking better than expected.''

The Morgan Stanley Capital International Asia Pacific Index added 2.7 percent to 162.46 as of 7:23 p.m. in Tokyo, the most since Sept. 19. All 10 industry groups advanced. Markets open for trading around the region climbed, except Pakistan. China's CSI 300 Index rose the most since Aug. 20, after retail sales grew at the fastest pace in more than eight years.

Tokyo Electron Ltd., the world's second-largest maker of machines used to produce semiconductors, jumped after saying orders will climb and Deutsche Bank AG raised its rating. Posco rose after UBS AG suggested investors buy steelmaker shares, saying earnings will recover this quarter.

Japan's Nikkei 225 Stock Average increased 2.5 percent to 15,499.56, its first gain in nine days. China Mobile Ltd. advanced in Hong Kong, where the Hang Seng Index rose 4.9 percent, the most since Aug. 20, after investors said a possible tie-up to sell Apple Inc.'s iPhones may benefit the company.

Toyota, Canon, Yen

Toyota, which gets about 70 percent of its profit from operations in North America, jumped 3.7 percent to 6,240 yen. Canon, the world's largest seller of digital cameras, surged 4.5 percent to 5,600 yen, the biggest gain since Aug. 23. Nintendo Co., maker of the best-selling Wii game console, added 8.5 percent to 64,100 yen.

The yen dropped to 111.44 against the dollar as of 7:21 p.m. in Tokyo, from as high as 109.22 yesterday. A weaker yen increases the value of Japanese exporters' dollar-denominated sales when converted into local currency.

``The currency is providing a boost,'' said Hiroshi Chano, who helps manage $7.3 billion at Yasuda Asset Management Co. in Tokyo. ``The positive news on Goldman and Wal-Mart is also helping.''

In the U.S., the Standard & Poor's 500 Index climbed 2.9 percent yesterday, the biggest gain since the Federal Reserve cut interest rates on Sept. 18. The Dow Jones Industrial Average rose 2.5 percent, while the Nasdaq Composite Index added 3.5 percent.

Wal-Mart, Li & Fung

Wal-Mart, the world's largest retailer, had its biggest advance since 2002 after reporting net income of 70 cents a share. Excluding a 1-cent tax benefit, the profit exceeded the 67-cent average estimate of analysts.

Li & Fung Ltd., a Hong Kong-based supplier to Wal-Mart, climbed 7.6 percent to HK$32. Westfield Group, which owns 59 shopping malls in the U.S., rose 2.7 percent to A$20.65.

Goldman Sachs jumped 8.5 percent in U.S. trading, the biggest gain in 6 1/2 years, after Chief Executive Officer Lloyd Blankfein said the company doesn't plan a significant writedown on mortgage-related securities.

Mitsubishi UFJ, Japan's largest publicly traded bank, added 6.3 percent to 967 yen. Mizuho Financial Group Inc., the second biggest, rose 6.4 percent to 550,000 yen. National Australia, the country's biggest lender, gained 2.2 percent to A$44.84. HSBC Holdings Plc, Europe's largest bank, added 1.2 percent to HK$139 in Hong Kong.

Shinsei, Tokyo Electron

Shinsei Bank Ltd., the worst-performing Japanese bank stock this year, rose 4.6 percent to 340 yen on speculation losses related to subprime lending are lower than its U.S. counterparts. Net income slid 40 percent to 23.1 billion yen ($208 million) for the six months ended Sept. 30, the bank said yesterday.

Tokyo Electron surged 4.7 percent to 6,250 yen, the biggest advance since Aug. 20, after it forecast yesterday that orders in its third quarter will rise to 170 billion yen from 127.5 billion yen in the previous quarter.

Capital spending by chipmakers ``is likely to recover strongly heading into the second half in the year ending March 2009,'' Yoshikazu Higurashi, an analyst at Deutsche Bank, wrote in a report yesterday. He raised his rating to ``buy'' from ``hold.''

Posco, the world's fourth-biggest steelmaker, gained 4.8 percent to 608,000 won in Seoul. Sumitomo Metal Industries Ltd., Japan's third-biggest steelmaker, added 5.6 percent to 494 yen. Angang Steel Co., China's third-largest steelmaker by output, rose 4.8 percent to HK$22.05.

Steelmakers, China Mobile

Steelmakers' profits will show a ``robust'' recovery in the fourth quarter, UBS said in a report, saying steel prices will remain strong in 2008, driven by demand from emerging markets including China.

China Mobile, the world's largest wireless operator by users, surged 9.2 percent to HK$140.80, halting a four-day, 10 percent loss. The company said yesterday it's in talks to sell the iPhone that may help the company lure higher-income users.

``This potential tie-up with Apple is very interesting,'' said Lei Wang, co-manager of Thornburg International Value Fund in Santa Fe, New Mexico, which oversees $16 billion. ``It's trying to protect its average revenue per user, and a high end terminal like Apple would definitely help them to achieve that.''

Hong Kong Exchanges & Clearing Ltd. added 5.5 percent to HK$239, the most since Oct. 5. The operator of the city's stock exchange reported third-quarter profit almost tripled from a year earlier, driven by rising stock prices and trading volumes.

China Retail Sales

China's benchmark CSI 300 Index rose 4.2 percent, led by consumer-related stocks after a government report showed retail sales grew 18.1 percent from a year earlier in October, the most since January 1999 when the authorities began releasing the figures.

Kweichow Moutai Co., the maker of the Moutai liquor used at official banquets, rose 5.2 percent to 186.97 yuan. Tsingtao Brewery Co., part-owned by Anheuser-Busch Cos., added 7.8 percent to 33.06 yuan.

``Consumer stocks are one of the safe bets for investors now, given China's strong consumption and the stocks' resistance to the economic cycle,'' said Zhang Shuntai, who helps manage the equivalent of about $127 million at Zhonghai Fund Management Co. in Shanghai.

Angang Steel Co. (347 HK)
China Mobile Ltd. (941 HK)
Canon Inc. (7751 JT)
Hong Kong Exchanges & Clearing Ltd. (388 HK)
HSBC Holdings Plc (5 HK)
Kweichow Moutai Co. (600519 CH)
Li & Fung Ltd. (494 HK)
Mitsubishi UFJ Financial Group Inc. (8306 JT)
National Australia Bank Ltd. (NAB AU)
Nintendo Co. (7974 JT)
Mizuho Financial Group Inc. (8411 JT)
Posco (005490 KS)
Shinsei Bank Ltd. (8303 JT)
Sumitomo Metal Industries Ltd. (5713 JT)
Tsingtao Brewery Co. (168 HK)
Tokyo Electron Ltd. (8305 JT)
Toyota Motor Corp. (7203 JT)
Westfield Group (WDC AU)

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Emma O'Brien in Wellington on eobrien6@bloomberg.net.

Last Updated: November 14, 2007 05:24 EST