ASIAN stocks gained for a third day yesterday, as higher metals prices and a decline in crude oil boosted the earnings prospects for mining companies and utilities.
BHP Billiton Ltd, the world's largest mining company, rose to a two-week high in Sydney. Tokyo Electric Power Co led power producers higher as oil dropped from a record, easing concerns higher fuel costs will hurt profit, Bloomberg News reported.
Sumitomo Mitsui Financial Group Inc, Japan's second-biggest bank by market value, climbed as Lehman Brothers Holdings Inc's CEO declared "confidence" in the value of its mortgage assets.
"The market is focusing on bank earnings at the moment to gauge how large writedowns are going to be this time around," said Naoteru Teraoka, who helps oversee US$21 billion at Chuo Mitsui Asset Management Co in Tokyo. "The good bet for the long term remains commodity shares."
Benchmarks dip
The MSCI Asia Pacific Index added 0.6 percent to 143.69 as of 4:45pm in Tokyo, with utilities and materials producers accounting for 32 percent of the gain.
Japan's Nikkei 225 Stock Average closed little changed at 14,348.37. Benchmarks declined in most markets open for trading. The Chinese mainland's CSI 300 Index dropped for a 10th session down by more than a half from its October peak.
Steel makers fell after Mizuho Securities Co lowered its ratings on JFE Holdings Inc and Kobe Steel Ltd, and UBS AG warned strikes could affect South Korean firms.
MSCI's Asian index has fallen 9 percent this year as financial companies worldwide declared almost US$393 billion of writedowns and losses tied to mortgage investments in the United States.
Most US stocks rose on Monday as second-quarter results from Lehman boosted financial shares. Standard & Poor's 500 Index futures were recently little changed.
BHP climbed 3 percent to A$44.93 (US$42.26), the highest since June 2.
Newcrest Mining Ltd, Australia's largest gold producer, gained 6.6 percent to A$28.
Jiangxi Copper Co, China's second-biggest producer of the metal, rose 1 percent in Hong Kong trading to HK$16.16 (US$2.07). A measure of six metals traded on the London Metal Exchange, including copper and zinc, added 1.2 percent on Monday, the steepest climb in more than a week.
Tokyo Electric, Asia's biggest power producer, advanced 1 percent to 2,605 yen (US$24.08). Every US$1 drop in the price of crude oil lifts the firm's yearly operating profit by about US$150 million. AGL Energy Ltd, Australia's biggest power retailer, climbed 2.6 percent to A$14.37.
Crude oil in New York fell to as low as US$133.50 a barrel in after-hours trade, dropping from Monday's intraday record of US$139.89.