Asia stocks rise as China moves to boost economy

Tokyo shrugged off a record monthly trade deficit of 1.475 trillion yen to end the morning session with the Nikkei 225 up 1.37 percent or 128.76 points at 9,512.93, after opening above 9,500 for the first time in six months.The enormous Japanese deficit came as fuel imports rose to meet electricity generation needs while exports to Europe slumped, but was broadly in line with expectations.Hong Kong was up 0.70 percent or 150.99 points at 21,642.61, with Shanghai up 0.88 percent, or 20.78 points, at 2,377.96.Sydney rose 1.24 percent, or 52.2 points, at 4248.1, and Seoul was up 0.33 percent, or 6.65 points, at 2,030.12.Thailand reported a huge 10.7 percent quarter-on-quarter fall in GDP for the October-December period last year, when the country was hit by devastating floods, but Bangkok shares were up 0.50 percent, or 5.61 points, to 1,135.54.The across-the-board rises came after Chinas central bank said Saturday it would cut commercial banks reserve requirement ratio by 0.50 percentage points to ease restrictions on lending and boost slowing economic growth.The move, the second since November, comes as Beijing looks to ease restrictions put in place to curb surging inflation and property prices amid fears that the worlds second-largest economy is slowing too quickly.Even though (the move) was expected, I think it is significant, and we are yet to see the full effect on global markets, Sydney-based RBS Morgans principal investment adviser Christopher Macdonald told Dow Jones Newswires.It gives confidence that China will restock the core commodities of coal, iron ore and copper, so I would expect the follow-though effects to take a few weeks.Investors were also watching a eurozone finance ministers meeting due in Brussels later Monday to try to close a new 230-billion-euro ($300 billion) bailout package for Greece and avert a chaotic default.After several false starts during weeks of difficult negotiations, the ministers will seek to approve terms on an exchange of bonds held by private investors, the launch of which is pencilled in for Wednesday.The move is designed to write off 100 billion euros of Greek sovereign debt, and would also see eurozone governments inject another 130 billion euros in sweeteners for Greek banks, guarantees covering the weeks-long legal bond-swap window and eventual cash loans to the government in Athens. But full delivery, as well as IMF assistance, will be contingent on EU-ordered spending cuts and reforms bearing fruit.Greece headline risks remain, but todays Eurogroup meeting should clear uncertainty about the implementation of the second bailout package, Credit Agricole said in a note.On currency markets, the euro was at $1.3209 and 105.06 yen, up from $1.3148 and 104.54 yen late Friday in New York.The dollar was at 79.53 yen, from 79.17 yen.New Yorks main oil contract, West Texas Intermediate crude for delivery in March, rose $1.60 to $104.84 per barrel and Brent North Sea crude for April settlement was up $1.52 at $121.10.Gold was at $1,735.30 at 0420 GMT, against $1,723.80 on Friday.