Nissan Motor Co. (7201), a carmaker that gets about 80 percent of sales outside Japan, increased 1.9 percent in Tokyo. BHP Billiton Ltd., the world’s biggest mining company, rose 1.9 percent in Sydney after first-half profit jumped more than expected. Bank of Communications Co. fell 1.2 percent in Hong Kong, pacing declines among Chinese lenders.

The MSCI Asia Pacific Index added 0.2 percent to 136.56 as of 11:34 a.m. in Tokyo, heading for its highest close since Jan. 29. A gauge excluding Japan shares fell 0.2 percent. Global equities erased this year’s losses after Janet Yellen’s first testimony to Congress as head of the Federal Reserve and China’s record lending buoyed optimism in the world’s largest economies.

“The positive equity momentum of the past week remains robust,” Evan Lucas, a markets strategist in Melbourne for IG Ltd., wrote in an e-mail to clients. “As the most dovish central bank in the world, this morning’s BOJ press conference will be interesting as there have been signs of life in inflation, its No. 1 mandate for the stimulus program.”

China Liquidity

Japan’s Topix (TPX) index rose 0.6 percent as the yen weakened against 16 major peers. New Zealand’s NZX 50 Index rose 0.1 percent. South Korea’s Kospi index dropped 0.4 percent, while Taiwan’s Taiex index was little changed. Singapore’s Straits Times Index lost 0.1 percent. Hong Kong’s Hang Seng Index slid 0.3 percent.

China’s Shanghai Composite Index fell 0.6 percent, retreating from a two-month high, as money-market rates climbed as the central bank drained funds from the banking system after new lending reached a record.

“The central bank has realized there’s a need to soak up some liquidity,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai. “The process will pressure stocks.”

China’s foreign direct investment climbed 16.1 percent to $10.76 billion in January from a year earlier, according to a government report released today. That compares with the 2.5 percent median growth forecast by analysts in a Bloomberg survey and a 3.3 percent rise in December.

Australia Rates

Australia’s S&P/ASX 200 Index was little changed. A period of steady interest rates is likely as record-low borrowing costs and a weaker currency aid growth, the nation’s central bank said in minutes released today of its Feb. 4 meeting, where it kept the benchmark rate unchanged at 2.5 percent. Policy makers will monitor prices after a surprising acceleration in inflation last quarter, it said.

The MSCI Asia Pacific Index rebounded this month after dropping 4.6 percent in January, its worst start since 2009, amid concern about Fed stimulus cuts, signs of a slowdown in China and volatility in developing markets. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and were erased yesterday as the MSCI World Index capped its nine-day advance, data compiled by Bloomberg show.

Relative Value

Shares on the MSCI Asia Pacific Index traded at 12.8 times estimated earnings yesterday, compared with 14.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. The Standard & Poor’s 500 Index traded at a multiple of 15.6 at the end of last week, the data showed. U.S. markets were closed yesterday for a holiday.

Of the 357 companies on the Asian measure that have reported quarterly earnings since the beginning of January and for which estimates are available, 54 percent beat profit expectations, Bloomberg-compiled data show.

To contact the reporters on this story: Jonathan Burgos in Singapore atjburgos4@bloomberg.net; Emma O’Brien in Wellington at eobrien6@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald atsmcdonald23@bloomberg.net

http://www.bloomberg.com/news/2014-02-18/asian-stocks-advance-for-third-day-before-boj-statement.html

• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:27)
• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:27)
• Asian Stocks Rise on Faster Japan Inflation, U.S. Outlook   (2014-05-30 09:33:02)
• Asian Stocks Fluctuate After Japan Retail Sales Slump   (2014-05-29 09:37:51)
• Asian Stocks Fall Second Day as Health-Care Shares Drop   (2014-04-08 08:52:58)
• Industrial Stocks Take ETF Bounty   (2014-04-08 08:52:29)
• Asian Stocks Set for Second Weekly Gain Before U.S. Jobs   (2014-04-04 09:46:16)
• Australia Model Curbs Speed as CEO Says U.S. Too Far Gone   (2014-04-04 09:45:49)
• Asia Stocks Rise 4th Day as Consumer Shares Lead Gain   (2014-03-31 10:48:33)
• Asia Stocks Swing After U.S. Manufacturing Index Falls   (2014-03-25 11:29:14)