HONG KONG (Bloomberg) — Asian stocks gained for a second day, led by technology companies, on speculation takeovers and higher memory-chip prices will help the industry overcome slowing economic growth. Russian shares swung between gains and losses.

AU Optronics Corp., Taiwan's largest liquid-crystal-display maker, climbed 2.5 percent after saying it was open to a merger. Hynix Semiconductor Inc., the world's second-largest maker of computer memory, jumped 3.1 percent as it trimmed investment plans. Nikon Corp., Japan's largest maker of steppers for semiconductor production, rose 7.1 percent. India's Reliance Petroleum Ltd. surged 6.7 percent after it started processing crude oil at a new refinery.

The MSCI Asia Pacific Index added 0.5 percent to 87.59 as of 7.52 p.m. in Tokyo, paring the first weekly decline in three. Markets were closed in Australia, Hong Kong, New Zealand and the Philippines for holidays. The past two days have been Japan's slowest full trading days in the past five years.

"We're going to see lot of merger and acquisition activities as restructuring goes on at companies that are really sensitive to the economic slowdown," said Kim Yong Tae, who helps manage about $2.3 billion at Yurie Asset Management Co. in Seoul. "Chipmakers continue to reduce oversupply and that's positive for the industry."

About eight stocks rose for every five that retreated on MSCI's Asian index, even as government reports showed Japan's recession deepened in November and China's central bank governor called for more measures to boost consumer spending. Japan's Nikkei 225 Stock Average gained 1.6 percent, while China's CSI 300 Index slipped 0.5 percent.

Russia's Micex Index was little changed at 628.04 as rising metals prices offset the rouble's decline and speculation the government isn't buying shares as actively as it has in the past two months.

Stocks worldwide have plunged in 2008, with the MSCI Asia Pacific heading for its worst year on record, as the collapse of the American housing market pulled the US, Europe and Japan into their first simultaneous recessions since World War II. Companies on the MSCI gauge are valued at an average 13 times estimated profit, more than a fifth below the level at the start of this year.

"I don't think you can simply say all the bad news has been discounted by the market," said Koichi Ogawa, chief portfolio manager at Tokyo-based Daiwa SB Investments Ltd., which manages $28 billion. "We're still going to see more profit forecast downgrades."