Asia stocks rose, trimming the MSCI Asia Pacific Index's second weekly decline, amid speculation European policymakers may contain the region's sovereign-debt crisis. Gold fell for a third day and the cost of protecting Asia-Pacific bonds from default declined.

The MSCI Asia Pacific Index advanced 2 percent at 11:53 a.m. Tokyo time as South Korea's Kospi Index rallied 3.5 percent. Gold for immediate delivery dropped 0.8 percent to $1,774.98 an ounce, poised for its biggest weekly loss in four months. Treasury 10-year note yields fell after rising the most in more than three weeks yesterday.

Global equities have rebounded this week after the ECB yesterday said it coordinated with other central banks to extend three-month loans to euro-area banks and German and French leaders expressed support for Greece to remain in the euro monetary union. The MSCI All-Country World Index has jumped 2.7 percent this week, poised for the biggest gain in almost three months. Read More