Asia stocks and currencies rose as the United Arab Emirates pledged support for its banks, easing concerns that losses from dubai world will spread. Treasuries and the cost of protecting corporate debt fell.

The msci Asia Pacific Index climbed 2.8 percent to 117.14 as of 12:27 p.m. in tokyo, the biggest gain in almost seven months. South Korea’s won strengthened the most in a month. National Australia Bank Ltd. and Commonwealth Bank of Australia advanced more than 3 percent as they don’t expect “material” losses from dubai.

Standard & Poor’s 500 Index futures added 0.6 percent after the U.A.E. central bank said lenders will be able to borrow money for half a percentage point above the three-month local benchmark interest rate. The msci World Index rose 0.6 percent from a three-week low.

“There is relief that things are not as serious as they might be,” said Matt Riordan, who helps manage about $5.1 billion at Paradice Investment Management in Sydney. “The risk of a serious contagion affecting the global financial system doesn’t now seem likely or probable.”

Finance companies were the biggest boost to the msci Asia Pacific Index after Australian lenders denied any “material” losses from dubai World. National Australia, the country’s third-biggest lender by value, gained 5.2 percent, while Commonwealth Bank rose 3.6 percent. samsung C&T Corp., builder of the world’s tallest tower in dubai, added 4.6 percent, rebounding from an 8.1 percent drop on Nov. 27. It stopped work on a $350 million dubai bridge after payments were halted.

Yen

Sony Corp., the maker of PlayStation gaming consoles, rose 4.2 percent as the yen halted gains that took it to a 14-year high against the dollar, boosting the outlook for Japan’s export revenues. nissan Motor Co., Japan’s No. 3 automaker, added 3.1 percent.

The yen, which surged to a 14-year high against the greenback last week, declined 0.2 percent to 86.78 to the dollar as investors bought higher-yielding currencies. Japan’s currency weakened against all 16 of the most-traded currencies tracked by Bloomberg.

South Korea’s won rose the most in a month after the Finance Ministry said the nation’s banks have “limited” exposure to dubai debt at around $88 million. Malaysia’s ringgit gained 0.6 percent to 3.3920 before a government report later this week that will probably show a slump in Malaysia’s exports eased to 10.3 percent in October from 24.2 percent in September, a Bloomberg survey showed.

Currencies

Australia’s currency rose 1.2 percent to 91.67 U.S. cents on speculation the central bank will increase interest rates tomorrow for a record third month. Policy makers will raise the target rate by 25 basis points to 3.75 percent, according to 20 of 21 economists surveyed by Bloomberg News on Nov. 27.

Chinese yuan 12-month non-deliverable forwards rose 0.1 percent to 6.629 per dollar, even after European officials indicated after meetings in Nanjing yesterday that they have failed to shift Chinese policies that peg the yuan to the dollar.

China’s Shanghai Composite Index rose 1 percent, rebounding from a weekly loss, after the government said the nation will maintain stimulus policies next year. The measure plunged 6.4 percent last week, the most in three months, on concern banks will sell shares to replenish capital depleted by loan growth.

U.S. Treasuries fell as global equities climbed. The yield on the benchmark 10-year note increased three basis points to 3.23 percent as in tokyo, according to BGCantor Market Data. The 3.375 percent security maturing in November 2019 fell 1/4, or $2.50 per $1,000 face amount, to 101 7/32.

Gold, Crude

Gold for immediate delivery was little changed at $1,176.31 an ounce at 9:49 a.m. Singapore time, erasing a 0.8 percent loss, as the U.S. dollar index, which tracks the greenback against currencies of six major U.S. trading partners, dropped 0.4 percent. gold jumped to a record $1,195.13 on Nov. 26.