By Kyung Bok Cho and Chan Tien Hin Oct. 9 (Bloomberg) -- Asian stocks gained after four of the region's central banks cut interest rates, joining a global effort to limit the economic impact of the worst financial crisis since the Great Depression. U.S. futures rose. Industrial & Commercial Bank of China Ltd. surged 6.1 percent in Hong Kong and LG Electronics Inc., climbed 4.9 percent in Seoul after China and South Korea lowered borrowing costs and corporate bond risk fell. Newcrest Mining Ltd. and Lihir Gold Ltd., Australia's largest publicly traded gold-mining companies, jumped more than 10 percent after the price of the metal climbed. The MSCI Asia Pacific Index advanced 2.8 percent to 93.93 as of 12:47 p.m. in Tokyo, ending a five-day, 16 percent slump. The benchmark measure fell 7.4 percent yesterday, the most since April 1990. S&P 500 index futures gained 0.6 percent. ``A lot of investors welcome this move to really restore confidence in the market,'' said Pankaj Kumar, who manages $460 million as chief investment officer at Kurnia Insurans Bhd. in Petaling Jaya near Kuala Lumpur. ``Markets are still fragile.'' Japan's Nikkei 225 Stock Average rose 2.5 percent to 9,430.14, led by Nintendo Co. and Mitsubishi Corp., after shares fell to their cheapest since at least 1989. The gauge tumbled 9.4 percent yesterday, the most since global markets crashed in October 1987. Hong Kong's Hang Seng Index jumped 3.2 percent. Most other Asian benchmark indexes gained. Indonesian stocks are suspended from trading following yesterday's 10 percent drop. Australia's S&P/ASX 200 Index fell 0.7 percent, led by Commonwealth Bank of Australia after it sold shares at a discount. The U.S. Standard & Poor's 500 Index fell 1.1 percent to 984.94 overnight, its lowest close since August 2003. Global Cuts China reduced its interest rate by 0.27 percentage point late yesterday, within minutes of cuts by the U.S. Federal Reserve, and five other central banks. Hong Kong, South Korea and Taiwan followed suit today, while Japan and Australia pumped more than $22 billion into money markets. Industrial & Commercial Bank gained 6.1 percent to HK$4.03. LG Electronics rose 4.8 percent to 109,500 won. The risk of companies and governments in the Asia-Pacific region defaulting on their debt fell. The Markit iTraxx Japan index was 4 basis points lower, while the Markit iTraxx Australia index declined 17 basis points. The indexes are benchmarks for protecting bonds against default and traders use them to speculate on changes in credit quality. Newcrest, owner of Australia's biggest gold mine, jumped 15 percent to A$26.60. Lihir climbed 11 percent to A$2.62. Sino Gold Mining Ltd., which started production last year at China's second-largest gold mine, advanced 14 percent to HK$26.20 in Hong Kong. Gold Price Gold jumped 2.8 percent to $906.50 an ounce in New York yesterday as volatile stock markets prompted investors to seek a haven in precious metals. Nintendo, Japan's second-largest video-game maker, rallied 13 percent to 35,000 yen in Osaka. Mitsubishi, Japan's largest trading house, gained 7.6 percent to 1,707 yen after its share price fell below the book value of its assets. ``We're making some changes to our portfolio to get into some attractive shares,'' said Hideyuki Ookoshi, who helps oversee about $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``There's some buying of blue-chip companies that from a long-term perspective are solid bargains, even though its unclear if we've hit rock bottom.'' Commonwealth Bank, Australia's biggest provider of mortgages, dropped 5.8 percent to A$42.54 after selling A$2 billion ($1.3 billion) of stock to raise funds for its acquisition of HBOS Plc's Australian units. The bank sold new shares at A$38 apiece, a 16 percent discount to its closing price on Oct. 7, before trading suspended. Valad Property Group, an Australian property investment and management company, plunged 52 percent to 12 Australian cents. The company said receivers were appointed to its customer Petrac, which owes Valad A$31.1 million. Aeon Co., Japan's second-largest retailer, fell 3.6 percent to 916 yen. The company reported an 8.6 percent drop in second- quarter operating profit as costs rose and consumer demand slumped. Larger rival Seven & I Holdings Co. lost 6.7 percent to 2,455 yen. To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net; Chan Tien Hin in Kuala Lumpur thchan@bloomberg.net

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