Asian stocks rose, led by technology and mining companies, after Hon Hai Precision Industry Co. (world's largest contract maker of electronics) reported greater? than? estimated earnings and China's manufacturing expanded at the fastest pace in 16 months. The MSCI Asia Pacific Index rose 0.3 percent to 113.76 as of 11:16 a. m. in Tokyo. China's Shanghai Composite Index, which yesterday fell by the most since June 2008, added 0.2 percent.

China's manufacturing expanded at the fastest pace in 16 months in August, driven by record lending in the first half of the year, two surveys showed. The official Purchasing Managers' Index rose to a seasonally adjusted 54 from 53.3 in July. The HSBC PMI, previously released by CLSA Asia? Pacific Markets, showed an overall increase to 55.1 from 52.8 in July.

Beijing still faces the difficult task of managing liquidity conditions to avoid a bubble or a bust. New loans plunged to 355.9 billion yuan ($52 billion) in July, less than a quarter of June's level, and may slump to 200 billion yuan in August, the Beijing? based business magazine reported.

The Shanghai Composite Index, the world's worst performer in August, may fall another 25 percent as China's economic recovery isn't "sustainable," former Morgan Stanley Asian economist Andy Xie said. The measure plunged 6.7 percent to 2,667.75 yesterday, the most since June 2008, and entered a bear market on concern a slower lending growth may derail a rebound in the world's thirdlargest economy.

Grupo Mexico SAB should be allowed to regain control of its bankrupt U. S. copper mining unit, Asarco LLC, by giving creditors almost $2.5 billion, a judge said, rejecting an offer from Sterlite Industries (India) Ltd. U. S. Bankruptcy Judge Richard Schmidt today sent his recommendation to a district court judge who will make the final decision about what will happen to Asarco

Business activity in the U. S. rose more than forecast in August, adding to signs the economy is improving. The Institute for Supply Management? Chicago Inc. said today its business barometer increased to 50, the highest level since September, from 43.4 in July. ISM in US for Aug is expected at 50.5 against 48.9 for July. Whereas PMI for UK for Aug Month is expected at 51.5 against 50.8 for July month.