Asian stocks rose for a third week as commodity prices gained and as U.S. companies reported or raised profit forecasts, boosting confidence in the strength of global economic growth.

The MSCI Asia Pacific Index climbed 1.0 percent, advancing for a third-straight week and posting the longest winning streak since the week ended April 16. The gauge has slumped 8.5 percent from its high this year on April 15 on concern Europe’s debt crisis and Chinese steps to curb property prices will slow global growth.

Hong Kong’s Hang Seng Index rose 2.8 percent this week as the city’s developers gained on prospects of higher property prices. China’s Shanghai Composite Index climbed 6.1 percent. South Korea’s Kospi Index increased 1.1 percent. Australia’s S&P/ASX 200 Index rose 0.8 percent, led by materials companies. Japan’s Nikkei 225 Stock Average advanced 0.2 percent in a four- day, holiday-shortened week.

A gauge of material companies gained the most this week among the 10 industry groups in the MSCI Asia Pacific Index, followed by energy companies.

Property developers rose as well on speculation China’s government will soon end policies to cool the housing market. Donald Straszheim, a senior managing director for China research at International Strategy & Investment Group, said China will “back away” from its tightening policies in the housing market within three months as the economy faces a bigger risk from a slowdown than inflation.