Asian Stocks Advance in U.S. Trading, Led by Japan's Automakers

By Fabio Alves

July 22 (Bloomberg) -- Asian stocks trading in the U.S. rose, led by Japanese automakers as a weaker yen improved the outlook for exports and Honda Motor Co. had its share-price forecast increased.

Honda Motor had the biggest gain in six weeks after Lehman Brothers Holdings Inc. boosted its share-price estimate by 8.4 percent. Toyota Motor Corp., Japan's biggest automaker, contributed the most to the advance in the in the Bank of New York Co.'s Asia ADR Index.

The index, which tracks the region's American depositary receipts, increased 1.4 percent to 147.79, the highest since July 1. Nikkei 225 Stock Average futures expiring in September traded at 13,345 in Chicago, compared with 13,100 in Singapore and 13,140 in Osaka, Japan.

The dollar advanced 0.7 percent to 107.20 yen after earlier reaching 107.45, the highest since July 9, as Treasury Secretary Henry Paulson voiced support for the U.S. currency. Oil prices fell more than $3 a barrel to a six-week low. A weaker yen and lower oil price bolstered confidence that earnings at Japanese trading companies will weather a global economic slowdown.

Mitsui & Co., Japan's second-biggest trading company, gained 4.5 percent, the most since May 16, to $405.24.

Honda Motor, which gets half of its revenue from North America, rose 4.3 percent to $34.12 for its biggest gain since June 4. Lehman Brothers reiterated an ``overweight'' rating on the stock. Toyota Motor, which gets 77 percent of its revenue from outside of Japan, advanced 4 percent to $92.87.

Semiconductor Manufacturing International Corp., China's biggest chipmaker, had the steepest gain since April 15, adding 12 percent to $2.99. China Business News report that the company may sell a stake for 2 billion yuan ($293 million) to Datang Telecom Technology & Industry Group.

The ADR index's advance was limited as Samson Oil & Gas Ltd., the oil and gas exploration company based in Perth, Australia, slumped 7.8 percent to $2.35 as crude oil prices slipped.

To contact the reporter on this story: Fabio Alves in New York at falves3@bloomberg.net.