Nov. 1 (Bloomberg) -- Asian stocks had their biggest gains in a month, with Japan's Nikkei 225 Stock Average closing at a four-year high.

Japanese lenders including Mizuho Financial Group Inc. surged after the central bank said a seven-year bout of deflation will end by April. Samsung Electronics Co. and Canon Inc. gained after oil fell below $60 a barrel and a report showed wages climbed in the U.S., Asia's biggest export market.

``Japan's growth prospects have been brightening up and the U.S. is looking solid,'' said Shigeharu Shiraishi, a managing director at Societe Generale Asset Management (Japan) Co. in Tokyo, which handles about $15 billion. ``They are going to be the biggest drivers for stocks.''

The Morgan Stanley Capital International Asia-Pacific Index added 1.6 percent to 111.07 at 5:30 p.m. in Tokyo, its biggest jump since Sept. 29. The regional gauge climbed 1.2 percent yesterday. Indexes around the region rose, except in China and Indonesia and Pakistan. Markets were closed in Singapore, Malaysia, the Philippines and India for holidays.

The Nikkei climbed 1.9 percent to 13,867.86, the highest since May 24, 2001, while the broader Topix index added 2 percent. The Tokyo Stock Exchange, the world's second largest, for the first time suspended all stock trading in the morning session after its computer system failed.

South Korea's Kospi index jumped 2.7 percent, Asia's biggest advance. Kookmin Bank led gains after the lender said third-quarter profit almost tripled to a record. Hong Kong's Hang Seng Index added 1.3 percent.

Japan

Mizuho Financial, Japan's second-largest bank, surged 7.9 percent to 883,000 yen. Mitsubishi UFJ Financial Group Inc., the largest, gained 4.8 percent to 1.52 million yen.

Canon Inc., the world's biggest copier maker, jumped 2.6 percent to 6,230 yen. Toyota Motor Corp., the world's largest carmaker by value, climbed 1.9 percent to 5,410 yen.

The Nikkei posted its biggest two-day advance in 12 months after the Bank of Japan said the nation's seven-year bout of deflation will end by April.

After the market closed yesterday, Japan's central bank predicted a 0.1 percent gain in core consumer prices this fiscal year, reversing a forecast for a decline. Core prices, which exclude food, will rise 0.5 percent next fiscal year, compared with an April outlook of 0.3 percent, according to the median forecast of nine policy makers.

Trading on the Tokyo Stock Exchange resumed at 1:30 p.m. in Japan. The last time the market couldn't open on schedule was on Aug. 1, 1997, when limited trades were carried out without computers. The halt was caused by an upgrade to the exchange's trading system to cope with a record number of transactions.

Exporters

Samsung Electronics, South Korea's largest exporter, rose 2.2 percent to 564,000 won. The company generated 83 percent of its sales from abroad last year. Hon Hai Precision Industry Co., Taiwan's largest electronics exporter by sales, added 3.8 percent to NT$150.5.

The Standard & Poor's 500 Index rose 0.7 percent in the U.S., bringing its two-day advance to 2.4 percent, the biggest such rally in almost a year. Consumer incomes increased 1.7 percent in September, the Commerce Department said. Economists surveyed expected growth of 0.3 percent.

Crude oil prices slid 2.4 percent to $59.76 a barrel in New York, lowering corporate costs and boosting spending among consumers. Oil closed below $60 for the first time since July 28. It was at $59.67 in after-hours trade.

Strong Figures

``The U.S. economic figures are quite strong and will bring confidence to the Asian market,'' said Rico Cheung, who oversees about $74 million at Franklin Templeton Sealand Fund Management Co. in Shanghai. ``We have every reason to favor exporters.''

Hyundai Motor Co., South Korea's biggest automaker, gained 4.1 percent to 79,700 won. Rinker Group Ltd., the biggest supplier of cement blocks in the U.S., climbed 3.1 percent to A$15.52. The Australian company gets about 80 percent of its sales in the U.S.

Kookmin, South Korea's largest lender, jumped 11 percent to 63,500 won. Net income rose to 923.9 billion won ($888 million) from a revised 322 billion won in the same period last year, the bank said after the market closed yesterday. Analysts had expected Kookmin to earn 556 billion won.

Korea Investment & Securities Co. raised its six-month stock-price estimate on Kookmin to 81,000 won from a previous forecast of 72,600 won, citing the bank's potential to revive earnings. Mirae Asset Securities Co. also lifted its six-month forecast to 73,700 won from 71,700 won.

``Kookmin's earnings give a boost of confidence to buy shares of financial companies,'' said Kim Yung Min, who helps oversee $1 billion at Korea Investment Trust Management Co. in Seoul.

Shinhan Financial Group Co, South Korea's second-largest financial services company, rose 5.5 percent to 36,700 won. Woori Finance Holdings Co., the third largest, gained 5.3 percent to 16,900 won.

Canon Inc. (7751 JT)
Hon Hai Precision Industry Co. (2317 TT)
Hyundai Motor Co. (005380 KS)
Kookmin Bank (060000 KS)
Mitsubishi UFJ Financial Group Inc. (8306 JT)
Mizuho Financial Group Inc. (8411 JT)
Rio Tinto Group (RIO AU)
Samsung Electronics Co. (005930 KS)
Shinhan Financial Group Co. (055550 KS)
Toyota Motor Corp. (7203 JT)
Woori Finance Holdings Co. (053000 KS)

To contact the reporter for this story: Stuart Kelly in Sydney skelly22@bloomberg.net;

Last Updated: November 1, 2005 03:36 EST