Asian stocks rallied for the first time in three days after China announced a $586 billion package to revive growth in the world’s fourth-largest econ

Hitachi Construction Machinery Co., which generates a sixth of its sales in China, soared 17 percent in Tokyo after the Chinese government announced infrastructure spending, tax deductions and farming subsidies. BHP Billiton Ltd., the world’s largest mining company, rose 7.8 percent as commodities prices surged. Anhui Conch Cement Co., China’s biggest maker of the building material, climbed 24 percent in Hong Kong.

“China’s stimulus plan can shore up the nation’s economy and soothe concern among investors that the global slowdown will worsen further,” said Mitsushige Akino, who oversees the equivalent of $468 million at Tokyo-based Ichiyoshi Investment Management Co. “Given we’re probably near the bottom, I’m planning to buy more stocks.”

The MSCI Asia Pacific Index gained 3.1 percent to 89.92 as of 11:55 a.m. in Tokyo. The gauge is still down 43 percent in 2008 as the credit crisis slows global growth, denting demand for Asian exports. Group of 20 leaders yesterday called for lower borrowing costs and higher government spending.

Japan’s Nikkei 225 Stock Average surged 5.2 percent to 9,028.38. Australia’s S&P/ASX 200 Index gained 2.3 percent, led by Macquarie Group Ltd. as the country’s central bank signaled it’s ready to cut interest rates. New Zealand’s NZX 50 Index rose 1.7 percent following the election of John Key, a former Merrill Lynch & Co. trader, as prime minister.

Stimulus Package

Futures on the Standard & Poor’s 500 Index climbed 1.7 percent today. The gauge advanced 2.9 percent on Nov. 7, the first gain in three days, as traders bet the Federal Reserve will cut interest rates in the face of rising unemployment.

China plans to spend 4 trillion yuan ($586 billion) by 2010 to support growth in its domestic economy as the rest of the world slows, the Beijing-based State Council said yesterday on its Web site. The funds are equivalent to almost a fifth of the nation’s gross domestic product.

Hitachi Construction, the world’s largest maker of giant excavators, rallied 17 percent to 1,234 yen. Kubota Corp., which makes farm equipment such as tractors, soared 15 percent to 539 yen. Doosan Heavy Industries & Construction Co., South Korea’s largest power-equipment maker, jumped 14 percent to 67,300 won.

Anhui Conch surged 24 percent to HK$33.50. China Railway Group Ltd., builder of half of the nation’s railroads, rose 9.6 percent to 5.16 yuan in Shanghai. China Life Insurance Co., the nation’s largest insurer, advanced 6.6 percent to 20.45 yuan.

Chinese ‘New Deal’

“Beijing’s new policy drive of upgrading infrastructure, rural land reforms, and expansion of social welfare is akin to a ‘New Deal’ with Chinese characteristics,” Jing Ulrich, chairwoman of China equities at JPMorgan Chase & Co., said in an e-mail. “Despite the growth risks to China’s economy, we believe the stock market will start to anticipate the positive impact of the government’s fiscal stimulus program.”

BHP added 7.8 percent to A$30.10. Newcrest Mining Ltd., Australia’s largest gold producer, jumped 8.7 percent to A$23.57. Mitsui & Co., Japan’s second-largest trading company, climbed 7.4 percent to 1,013 yen. It gets more than half of its profit from trading commodities.

Crude oil for December delivery gained as much as 5.3 percent to $64.30 in after-hours trading today. Copper futures jumped 5.5 percent, while gold added 2 percent. China’s stimulus measures also helped the Australian and New Zealand dollars to advance as investors resumed bets on high-yielding currencies that had been thrashed during the credit crisis.

Macquarie Group climbed 3.6 percent to A$31.21. Mitsubishi UFJ Financial Group Inc., Japan’s largest list bank, rose 3.8 percent to 663 yen.

G-20 Action

The Group of 20 nations said yesterday after a meeting in Sao Paulo that it’s ready to act “urgently” to bolster economic growth, and that governments must take all measures, which include monetary and fiscal policy.

Taiwan’s central bank lowered its benchmark interest rate for the fourth time in two months, effective today. Australia’s central bank today signaled it is ready to cut interest rates further as the weakening economy forced it to slash its growth outlook.

“Governments and businesses are working on solutions to the slowdown plaguing economies and earnings, which may bring us some positive surprises,” said Tomochika Kitaoka, a Tokyo-based strategist at Mizuho Securities Co., said in an interview with Bloomberg Television. “Given demand is waning, government spending will be a welcome boost to economies.”

Stocks worldwide have fallen this year on concern the global economy will fall into a recession after the collapse of the U.S. mortgage market triggered a credit crisis. The MSCI World Index has lost 40 percent in 2008 in a rout that wiped $29 trillion in stock-market value worldwide.

In the U.S., the jobless rate rose to 6.5 percent in October, the highest level since 1994, the Labor Department reported on Nov. 7. There is a 97 percent chance the Fed will cut its interbank lending rate at its Dec. 16 meeting, according to futures on the Chicago Board of Trade.