Asian stocks rose, reversing earlier losses, after a gauge of economic indicators signaled that growth in China is withstanding Europe's debt crisis and a faltering U.S. economy.

China Life Insurance Co., the nation's biggest insurer by market value, rose 1.5 percent in Hong Kong after the Conference Board said its leading indicator index for the world's second- largest economy rose 0.6 percent in July, citing a preliminary reading. Cnooc Ltd., China's No. 1 offshore oil producer, pared losses, while BHP Billiton Ltd., the world's largest mining company, climbed 0.9 percent in Sydney, reversing an earlier decline of as much as 0.5 percent.

The MSCI Asia Pacific Index rose 0.4 percent to 118.3 as of 3:54 p.m. in Tokyo, reversing earlier losses sustained after the International Monetary Fund cut its global economic growth forecast. The gauge has fallen for the past two weeks on concern Europe's debt crisis is spreading and on signs of slowing U.S. growth. Asian stocks also rose amid speculation the Federal Reserve will today announce new steps to spur the world's biggest economy. Read More