Asian stocks advanced, paced by Matsushita Electric Industrial Co and Samsung Electronics Co, after US Federal Reserve Chairman Alan Greenspan said a slowdown in US consumer spending may be "short-lived."

　　Shares of "exporters are being sought on the back of Greenspan's comments, which provided some confidence about the economic outlook," said Takashi Miyazaki, who helps manage US$8.6 billion in stocks at UFJ Partners Asset Management Co in Tokyo.

　　The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 900 stocks, rose 1 percent to 90.41 in Tokyo. Japan's Nikkei 225 Stock Average gained 1.6 percent to 11,433.86 after the Cabinet Office doubled its forecast for economic growth in the year ending on March 31 to 3.5 percent, the most in eight years.

　　South Korea's Kospi index jumped 2.2 percent, its biggest gain in a month, to 753.32. Hong Kong's Hang Seng Index added 2.2 percent to 12,395.11, a six-week high. Stock benchmarks in all markets rose.

　　The MSCI Asia-Pacific Index has shed 8.5 percent since its high this year on April 7 partly on concern higher prices for oil and fuel will slow consumer demand. Greenspan told the US Senate Banking Committee the expansion in the world's largest economy has become "more broad-based" and that "softness" in spending by households won't last.

　　Matsushita Electric, the world's largest consumer electronics maker, climbed 2.4 percent to 1,476 yen (US$13.51). The company, which gets 18 percent of its sales from North America, said it will raise monthly production of digital cameras by 75 percent beginning next month.

　　Samsung Electronics, South Korea's largest exporter, jumped 3 percent to 429,500 won (US$370). Taiwan Semiconductor Manufacturing Co, the world's largest supplier of made-to-order chips, gained 4.6 percent to 43.40 New Taiwan dollars (US$1.28).

　　Tokyo Electron Ltd, the world's No. 2 maker of chip-production equipment, added 4.8 percent to 5,450 yen. The company gets more than half of its revenue from overseas.

　　Singapore's Chartered Semiconductor Manufacturing Ltd climbed 5.3 percent to 1.20 Singapore dollars (70 US cents). The world's fourth-largest supplier of made-to-order computer chips gets about two-thirds of its sales from the Ubited States. The stock lost 17 percent in the past seven days. The company will report second-quarter earnings tomorrow.

　　The Hong Kong-traded shares of HSBC Holdings Plc, which runs more than 400 US bank branches, added 1.3 percent to 116.50 Hong Kong dollars (US$14.93). Li & Fung Ltd, which buys Asian-made clothing for US clients including Abercrombie & Fitch Co, gained 4.3 percent to HK$11.05.

　　The Federal Open Market Committee, in a related report, predicted the US economy will grow as much as 4.75 percent in 2004 from last year's fourth quarter, down from February's 5 percent estimate. The Fed raised the benchmark rate last month by a quarter point to 1.25 percent, and said more increases may come at a "measured" pace if inflation stays tame.

　　The United States is the biggest destination for Asian exports.

　　"Greenspan's encouraging comments are pushing up stocks," said Oh Sung Min, who manages the equivalent of US$86 million at Seoul Investment Trust Management Co in Seoul. "He made two things clear: There will be no sharp increase of interest rates and the economy is on the way of expansion."

　　Aeon Co, Japan's largest retailer, rose 1.5 percent to 3,990 yen. NTT DoCoMo Inc, the nation's largest mobile-phone operator, added 4.6 percent to 181,000 yen.

　　Secom Co, Japan's No. 1 provider of security systems, gained 2.7 percent to 4,520 yen.

　　The Japanese government's new growth forecast compares with a 1.8 percent expansion predicted in December. Consumer prices will fall 0.1 percent this fiscal year, less than the earlier estimate of a 0.2 percent slide, according to the report.

　　Rising exports and capital spending are spurring a recovery in consumer demand, which makes up half of the world's second-largest economy, the Cabinet Office said.

　　(Bloomberg News)