Most Asian Stocks Advance; BHP Billiton Gains, ANZ Bank Drops

By Patrick Rial

July 28 (Bloomberg) -- Most Asian stocks advanced, as a gain in commodity producers countered a slump in financial shares after Australia & New Zealand Banking Group Ltd. forecast a drop in profit.

BHP Billiton Ltd., the world's largest mining company, led commodities producers higher after gold and copper rose. Yahoo Japan Corp., the operator of Japan's most visited Internet portal, rose to the highest in more than two weeks after profit rose and analysts raised their ratings on the stock. ANZ, Australia's fourth-largest bank, tumbled the most since 1987 after saying profit will fall as much as 25 percent this year on bad debts.

The MSCI Asia Pacific Index was little changed at 132.93 as of 10:57 a.m. in Tokyo. More than three stocks rose for every two that declined.

Japan's Nikkei 225 Stock Average added 0.8 percent to 13,436.88. Australia's S&P/ASX 200 Index lost 1.3 percent. Taiwan is closed today as Typhoon Fung-Wong struck the island.

In the U.S., the Standard & Poor's 500 Index rose 0.4 percent on July 25, paring a weekly retreat, on growing speculation the worst of the economic slowdown is over after better-than-forecast reports on durable goods orders, consumer confidence and new-home sales.

BHP gained 1.6 percent to A$37.52. Mitsubishi Corp., which jointly controls the world's biggest exporter of coking coal with BHP, gained 2.6 percent to 3,140 yen. Mitsui & Co., which generates more than half its profits from commodities dealing, surged 4.5 percent to 2,205 yen.

A measure of six metals traded on the London Metal Exchange, including copper and zinc, added 0.3 percent on July 25, the first gain in three days. Copper rose 0.8 percent, while gold climbed 0.5 percent.

Higher Orders

Resource prices were given a boost after U.S. durable goods orders unexpectedly rose 0.8 percent in June from the previous month.

Yahoo Japan shares gained 4.3 percent to 41,700 yen, the highest level since July 10. Net income for the three months ended June 30 rose to 19.2 billion yen ($177 million) from 16.2 billion yen a year earlier on increased advertising sales and profit from a new subsidiary, the company said. KBC Securities analyst Hiroshi Kamide raised his rating to ``buy'' from ``hold.''

ANZ Banking dropped 11 percent to A$15.73, set for its lowest close since March 2003. The bank said earnings per share may fall 20 percent to 25 percent in the 12 months to Sept. 30. Chief Executive Officer Mike Smith said the bank has tripled provisions for delinquent loans from a year earlier.

Banks Decline

Commonwealth Bank of Australia, the nation's largest lender, slumped 5.1 percent to A$41.06, while St. George Bank Ltd. lost 5.9 percent to A$26.85.

Honda Motor Co., Japan's second-largest automaker, slumped 2.9 percent to 3,650 yen after lowering its operating profit forecast on rising raw material costs and a weaker outlook for truck sales.

Advantest Corp., the world's biggest maker of memory-chip testers, fell 6.3 percent to 2,165 yen in Tokyo after the company forecast a loss in the first half on scaled-back investment in factories by chipmakers. Macquarie Group Ltd. reduced its 12- month price estimate 12 percent to 1,450 yen, citing slumping orders.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.