TOKYO, July 5 — Asian stocks rose, with the regional equities gauge on course for a second week of gains, as European policy makers signalled they will keep borrowing costs low for longer.

Nissan Motor Co., a Japanese carmaker that gets 80 per cent of sales offshore, gained one per cent in Tokyo. BHP Billiton Ltd., the world biggest mining firm, climbed 1.9 per cent in Sydney, leading an advance among raw-material companies. Samsung Electronics Co. sank 1.4 per cent in Seoul after second-quarter earnings at the world’s largest television maker missed estimates.

The MSCI Asia Pacific Index gained 0.5 per cent to 131.23 as of 9:18 am in Tokyo, as all 10 industry groups climbed. The gauge is headed for a 0.5 per cent advance this week. Futures on the Standard & Poor’s 500 Index gained 0.9 per cent, with US equity markets poised to reopen following a public holiday. Markets in Hong Kong and China are yet to open.

“The European Central Bank and the Bank of England have both come out and tried to combat the rise in bond yields with some forward guidance,” Keith Poore, Wellington-based head of investment strategy at AMP Capital Investors Ltd., which manages more than US$130 billion (RM390 billion), said by telephone. “The market was surprised by the dovish comments. Global growth is picking up and this should flow through to earnings and help stocks go higher.”

Japan’s Topix index added one per cent, with trading volume 4.8 per cent above its 30-day average of the time of day. Australia’s S&P/ASX 200 Index advanced 1.2 per cent and South Korea’s Kospi index rose 0.4 per cent. New Zealand’s NZX 50 Index climbed 0.5 per cent.

Draghi pledge

European Central Bank President Mario Draghi pledged to keep interest rates at a record low for an “extended period” yesterday after Bank of England chief Mark Carney said increases in market rates weren’t warranted.

The rhetoric contrasts with that from the US Federal Reserve, which has fuelled global equity declines by signalling stimulus may be reduced this year as the economy improves.

US employers added almost as many workers last month as in May and the jobless rate probably fell, according to Bloomberg surveys of economists before the data due today.

US Treasury yields soared to 2.61 per cent on June 25, the highest level since August 2011, as an improving economy dimmed the lure of bonds as a haven. Global stocks have slumped since May 20 after Fed Chairman Ben S. Bernanke said the central bank may reduce bond purchases if the US economy improves in line with forecasts.

US jobs

The US unemployment rate probably fell to 7.5 per cent in June, matching April’s four-year low and down from 7.6 per cent in May, according to the median estimate of 82 economists surveyed by Bloomberg ahead of a Labour Department report due today. Payrolls grew by 165,000 workers, after rising 175,000 in May, the median of 70 projections shows.

The MSCI Asia Pacific Index fell 9.5 per cent through yesterday from a five-year high on May 20 amid concern that the Fed will begin tapering stimulus as China’s economy slows and Japan puts off unveiling economic reform policies until after upper house elections later this month.

That left the gauge trading at 12.7 times average estimated earnings yesterday compared with 14.7 for the Standard & Poor’s 500 Index and 12.9 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. — Bloomberg