Asian Stocks Rise on Oil Drop, Lehman Speculation; Banks Gain

By Chen Shiyin

Aug. 25 (Bloomberg) -- Asian stocks rose, helping the regional benchmark index rebound from a two-year low, after oil slumped and on speculation a possible investment in Lehman Brothers Holdings Inc. will ease concerns over credit losses.

Honda Motor Co., Japan's second-largest automaker, climbed 4.1 percent after crude fell more than $6 a barrel on Aug. 22 and Federal Reserve Chairman Ben S. Bernanke said inflation should slow. Macquarie Group Ltd., Australia's biggest securities firm, added 2.5 percent, leading financial companies higher, as Korea Development Bank said it's considering an investment in Lehman.

The MSCI Asia Pacific Index gained 1.1 percent to 122.99 as of 9:24 a.m. in Tokyo, rebounding from a four-week, 8.5 percent retreat that sent the gauge to the lowest since July 24, 2006. Energy companies including Inpex Holdings Inc. were the only gauge to decline among the index's 10 industry groups.

The regional measure has dropped 22 percent this year as soaring inflation assailed global economies and the world's largest financial companies posted writedowns and credit losses of more than $500 billion.

Japan's Nikkei 225 Stock Average advanced 1.9 percent to 12,908.32, poised for its largest gain since Aug. 11. Indexes also climbed in Australia, New Zealand and South Korea.

U.S. stocks advanced on Aug. 22, lifting the Standard & Poor's 500 Index by 1.1 percent. Financial companies on the S&P 500 index rose the most in two weeks, led by a rally in Lehman.

Crude oil for October delivery plunged 5.4 percent to $114.59 a barrel, the biggest drop since Dec. 27, 2004, after BP Plc resumed flows through a Caspian pipeline.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net