By James Poole and Weiyi Lim Feb. 11 (Bloomberg) -- Asian stocks advanced for a third day, while commodities and higher-yielding currencies rallied, as Australian unemployment fell, European leaders meet on an aid package for Greece and Chinese inflation unexpectedly slowed. About four shares rose for each one that fell today on the MSCI Asia Pacific excluding Japan Index, which was up 3.2 percent this week by 3:46 p.m. Singapore time. The Australian dollar strengthened against all 16 of the most-traded currencies. Copper advanced as much as 3.8 percent and oil 0.8 percent. Futures on the Standard & Poor’s 500 Index gained 0.7 percent and on the Dow Jones Euro Stoxx 50 Index 0.6 percent. Investor sentiment improved after Australian employers added the most workers in more than three years in January, the fifth straight monthly increase, according to the statistics bureau in Sydney. European Union leaders may lay the groundwork today for a precedent-setting aid package for Greece, while China’s inflation gained 1.5 percent in January, slower than a 1.9 percent increase in December. “People are more optimistic for the time being and a bit happier the way the world is panning out,” said Tim Schroeders, who helps manage $1.1 billion at Pengana Capital Ltd. in Melbourne. The employment data “exceeded expectations. We still need confirmation that a plan to save Greece is going to take place in the next 24 to 48 hours.” The MSCI Asia Pacific excluding Japan Index advanced 1.8 percent to 388.41. Hong Kong’s Hang Seng Index climbed 1.7 percent and the Shanghai Composite Index added 0.1 percent after China’s gain in consumer prices was less than the median forecast for a 2.1 percent increase in a Bloomberg News survey of economists. ‘Risk Appetite’ The latest number is “good news as it suggests that inflation in China is not getting out of hand,” Shane Oliver, head of investment strategy at AMP Capital Investors, which oversees about $90 billion globally, told Bloomberg Television in Sydney. “We’re not going to see aggressive tightening in credit conditions in China. The recovery will continue.” The Kospi Index increased 1.8 percent in South Korea, where the central bank left its key interest rate unchanged today. Japan and Taiwan are closed. South Korea’s won was little changed at 1,156.45 versus the dollar as foreign investors bought more Korean shares than they sold for a second day. Malaysia’s ringgit strengthened 0.2 percent to 3.4230 per dollar. “Risk appetite has piqued up,” said Sean Callow, a Sydney-based currency strategist at Westpac Banking Corp. “Most likely it’s coming from optimism that tonight in Europe we will get some positive news in terms of Greece.” Woodside, Santos Australia’s S&P/ASX 200 Index was up 0.9 percent as Woodside Petroleum Ltd., Australia’s No. 2 oil producer, rose 3.2 percent to A$43. Santos Ltd., the country’s No. 3 oil producer, climbed 1.6 percent to A$13.25. Crude oil for March delivery rose 1 percent to $74.52 a barrel in New York yesterday and added 0.7 percent today, the fourth-consecutive advance. James Hardie Industries NV, the biggest seller of home siding in the U.S., advanced 2.4 percent to A$7.85. The company said operating profit rose 66 percent in the third quarter and it expects full-year operating profit to be close to the top range of analyst estimates. Phone stocks were among the biggest drags on the index as Telstra Corp. slumped 5 percent to A$3.22 after cutting its annual revenue forecast for a second time in two months. Telstra also said first-half profit fell 3.3 percent. Australia Dollar, Bonds The Australian dollar gained 1.5 percent to 88.86 U.S. cents and the yield on Australia’s benchmark 10-year note increased six basis points to 5.51 percent after the statistics bureau said the country added 52,700 workers in January, three times as many jobs as economists forecast. The Australian dollar, like the New Zealand dollar and South African rand, also strengthened as copper jumped to $6,785 a metric ton and zinc was up 1.3 percent. The New Zealand currency rose 0.9 percent to 69.92 cents and the rand climbed 0.8 percent to 7.6796 per dollar. There was “a big boost for the Aussie” from the labor force number, said Amber Rabinov, an economist in Melbourne at Australia & New Zealand Banking Group Ltd. “The numbers put more emphasis behind the feeling that the unemployment rate has peaked and we’re now seeing it steadily head lower.” The euro gained against the dollar and yen on optimism European Union leaders meeting in Brussels today will put together an aid package to help Greece counter its widening budget deficit. The euro advanced to 123.91 yen from 123.56 yen, and to $1.3774 from $1.3737. Greece Summit Germany and France are working on options such as loan guarantees for Greece as long as Prime Minister George Papandreou overcomes street protests and makes deeper cuts to the EU’s biggest budget deficit. U.S. Treasuries fell yesterday after demand declined at an auction of 10-year notes and Federal Reserve Chairman Ben. S. Bernanke said policy makers may raise the discount rate “before long” as the economy improves. The Treasury will sell $16 billion of 30-year bonds today. Trading of Treasury bills, notes and bonds was closed in Japan. To contact the reporters on this story: James Poole at jpoole4@bloomberg.net Weiyi Lim at wlim26@bloomberg.net

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