U.S. stocks broke a week long slump and posted their biggest gains since July after Treasury Secretary Henry Paulson eased concern that rising mortgage defaults will undermine the economy.
Countrywide Financial Corp., Lehman Brothers Holdings Inc., and Citigroup Inc. led financial shares to their steepest advance in more than six months. Twelve stocks rose for every one that fell on the New York Stock Exchange.
Paulson, who is meeting with his counterparts during his first tour of northeast Asia as treasury secretary, told reporters in Tokyo earlier today an increase in bad debts at subprime mortgage companies won't affect banks that make less risky loans. Asian stocks surged the most in almost two months and emerging markets had their best performance since June. The drop in global equities since Feb. 27 erased $3.3 trillion in market value.
Read more at Bloomberg.com
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