East Asian economies will grow faster than initially estimated this year, adding pressure on central banks to tighten policy and allow currency flexibility to prevent asset bubbles, the World Bank said.

Developing East Asia, which excludes Japan, Hong Kong, Taiwan, South Korea, Singapore and the Indian subcontinent, will expand 6.7 percent this year, more than an April estimate of 5.3 percent, the Washington-based lender said its semi-annual report. Growth may accelerate to 7.8 percent next year, it said.

China’s policymakers must avert stock and property market bubbles after lending swelled to a record $1.27 trillion this year, the World Bank said.

The Washington-based lender raised China’s economic growth forecast for this year to 8.4 percent from 7.2 percent and Beijing-based senior economist Louis Kuijs said the central bank will “eventually” have to rein in credit to ensure resources are properly allocated.

The Shanghai Composite Index has surged 72 percent this year after Chinese authorities enacted a $586-billion stimulus plan, lowered banks’ cash reserve requirements and reduced the one-year lending rate to a five-year low. The World Bank also said China will need to do more to rebalance the economy toward consumption and services and away from investment and industry.

Asian stocks rose for the first time in three days, led by banks and mining companies, as Korea Exchange Bank and Westpac Banking Corp. posted better-than- estimated earnings and gold prices climbed to a record.

Korea Exchange Bank jumped 6.3 percent after saying third- quarter profit almost tripled. Westpac, Australia’s No. 2 bank, added 1.5 percent in Sydney. Zijin Mining Group Co., China’s largest gold company, and Sumitomo Metal Mining Co., Japan’s top producer, gained more than 3 percent. Toyota Motor Corp. added 1.4 percent in Tokyo after the Yomiuri newspaper said the company had upgraded its production plan.