By Chua Kong Ho and Satoshi Kawano
July 31 (Bloomberg) -- Asian stocks rose for a second day, led by BHP Billiton Ltd. after prices of oil and copper climbed.
BHP, the world's largest mining company, and Cnooc Ltd., China's biggest offshore explorer, advanced after oil climbed more than $4 a barrel yesterday and metals rose. Alumina Ltd. gained after reporting higher first-half sales and prices. Orient Overseas (International) Ltd., Hong Kong's largest container line, tumbled the most in 11 months and Yamaha Motor Co., the world's second-largest motorcycle maker, fell after posting lower profits, capping gains for Asia's benchmark index.
``Commodity companies can still be expected to produce relatively strong earnings,'' said Hiroshi Fujimoto, a fund manager at Shinkin Asset Management Co. in Tokyo, which manages the equivalent of $5.7 billion. ``Auto-parts makers can't avoid the effects of the depressed U.S. market.''
The MSCI Asia Pacific Index added 0.4 percent to 132.62 as of 4:15 p.m. in Tokyo as seven of its 10 industry groups advanced. The Asian benchmark index has fallen 3.1 percent this month, adding to its 16 percent retreat this year on concern the U.S. economy is slowing amid record fuel prices.
Japan's Nikkei 225 Stock Average added 0.1 percent to 13,376.81. Nintendo Co., the maker of the Wii video game machine, plunged the most in six months after leaving profit forecasts unchanged in spite of 34 percent first-quarter profit growth.
Most other markets open for trading in Asia advanced. In the U.S., the Standard & Poor's 500 Index rose 1.7 percent, led by the biggest gain in energy shares in six years as oil prices increased and a private report showed an unexpected rise in jobs. S&P 500 futures were 0.1 percent lower.
BHP, Cnooc
BHP added 1.2 percent to A$39.71, and rival Rio Tinto Group gained 3.2 percent to A$125.40. A measure of six metals traded on the London Metal Exchange advanced 0.8 percent. Copper rose 1.3 percent and nickel 3.9 percent.
Crude oil surged $4.58, or 3.8 percent, to $126.77 a barrel yesterday, the highest close since July 22, after a U.S. Energy Department report showed gasoline inventories declined for the first time in five weeks.
Cnooc rose 3.9 percent to HK$11.76 in Hong Kong. Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, gained 3.9 percent to A$53.80, while Inpex Holdings Inc., Japan's biggest oil explorer, added 2.5 percent to 1.097 million yen.
Alumina, owner of 40 percent of the world's biggest producer of the material used to make aluminum, added 6.4 percent to A$4.65. Aluminum prices surged 28 percent in the first half and will remain ``firm'' because of higher energy costs and supply cuts in China, the U.S. and South Africa, Alumina said. Revenue from the company's joint venture with Alcoa Inc. rose 16 percent.
Shipping, Yamaha
Orient Overseas slumped 9.5 percent to HK$34.85, the most since Aug. 29, 2007. Operating profit in the first half dropped to $217.6 million from $298.4 million a year earlier, the company said today, as higher fuel costs and falling demand cut earnings.
Lehman Brothers Holdings Inc. downgraded its view on Asia's container shipping industry to ``negative'' from ``neutral,'' saying freight rates will decline. Hanjin Shipping Co., South Korea's biggest shipping line, dropped 4.7 percent to 34,000 won. Mitsui O.S.K. Lines Ltd., Japan's No. 2 shipping company, declined 1.7 percent to 1,410 yen.
Yamaha Motor plunged 6.2 percent to 1,830 yen, after cutting its forecast for full-year profit to 45 billion yen ($416.8 million) from an earlier prediction of 59 billion yen, due to waning U.S. demand.
Denso, Aisin Seiki
Denso Corp. and Aisin Seiki Co., Japan's two largest auto parts makers, fell after cutting their profit forecasts on lower demand from the U.S.
Denso, which makes air-conditioning systems, sank 6.5 percent to 2,815 yen, the most since Aug. 17, 2007. Aisin Seiki dropped 5.8 percent to 2,825 yen. Both companies lowered their profit forecasts for the year after their biggest customer, Toyota Motor, cut its worldwide sales target this year to 9.5 million from 9.85 million on July 28.
``We're clearly in a bear market originating from the U.S. and it's just started,'' said Tim Zhai, a Shanghai-based portfolio manager at Artesian Capital Management Ltd., which oversees about $1 billion in assets. ``I wouldn't be surprised if we stay in bear territory for another one or two years.''
Nintendo plunged 8.7 percent to 52,600 yen, the most since Jan. 28 and the biggest drag on the MSCI Asian gauge. The world's largest handheld game player maker said first-quarter operating profit rose 32 percent to 119.2 billion yen ($1.1 billion) and maintained its full-year profit forecast.
Asciano, Promise
There was ``some expectation'' that the company would raise its full-year earnings projections, said Jay Defibaugh, a Tokyo- based analyst at Credit Suisse Group, in a report yesterday. ``We view 1Q results as in line to modestly disappointing.''
Asciano Group, spun off from Toll Holdings Ltd. last year, jumped 16 percent to A$4.25, after the Australian Financial Review's ``Street Talk'' section said the company may scrap a A$1 billion-plus ($945 million) share sale in favor of asset sales. The company didn't return calls seeking comment.
Promise Co., which bought competitor Sanyo Shinpan Finance Co. last year, rallied the most since April 28, adding 5.1 percent to 2,760 yen. Profit for the three months ended June 30 climbed to 11.9 billion yen from 6.6 billion yen a year earlier, boosted by contributions from Sanyo Shinpan, the company said.
Takeda Pharmaceutical Co., Asia's largest drugmaker, gained 4.2 percent to 5,750 yen, after the company raised its full-year profit forecast by 25 percent on lower-than-expected costs from its $8.9 billion acquisition of Millennium Pharmaceuticals Inc.
To contact the reporter for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net; Satoshi Kawano in Tokyo at Skawano1@bloomberg.net
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