Asian stocks rose for a second day, led by mining companies and banks, as gold prices surged to a record and brokerages upgraded companies including Sumitomo Mitsui Financial Group. BHP Billiton Ltd., the world's biggest mining company, gained 2.7 percent and Newcrest Mining Ltd., Australia's largest gold producer, surged 6.4 percent in Sydney.

Raw? material prices climbed as the dollar's decline spurred demand for commodities as a hedge against inflation. The Dollar Index, which measures the U. S. currency against six major counterparts, traded near a two? week low as speculation the Federal Reserve will trail other central banks in raising interest rates made the greenback less attractive. Commodities are priced in dollars and a weak U. S. currency inevitably raises their prices

Australia raised its benchmark rate yesterday, becoming the first country in the so? called Group of 20 nations to boost borrowing costs since the start of the credit crisis, after it avoided a recession and Reserve Bank Governor Glenn Stevens said the "risk of serious economic contraction" had passed. Gross domestic product will rise 0.7 percent this year, bucking the 3.4 percent slide for advanced economies, the International Monetary Fund said last week. President Barack Obama is considering a mix of spending programs and tax cuts to respond to widening job losses that would amount to an additional economic stimulus without carrying that label.

U. S. stocks rose, extending a worldwide rally, on speculation third? quarter earnings will top estimates and growing conviction the global economy is improving. The dollar slid after Australia unexpectedly raised interest rates, boosting oil and sending gold to a record. Alcoa Inc. and Newmont Mining Corp. climbed at least 3.5 percent, while Exxon Mobil Corp. gained 1.6 percent as crude oil traded near $71 a barrel. U. S. equities also advanced as President Barack Obama, responding to widening job losses, considered a mix of spending programs and tax cuts that would amount to an additional economic stimulus without carrying that label.

The discussion of the initiatives, including a boost in transportation spending and an extension of an expiring tax credit for first? time homebuyers, comes as the White House is balancing rising concern about unemployment and a budget deficit the Congressional Budget Office estimates will total $1.6 trillion for 2009, and $1.4 trillion in 2010. Administration officials have told allies in Congress that a broader transportation bill, and extensions of a homebuyer tax credit and unemployment benefits are all on the table, a Senate aide said.