Asian Stocks Rise on U.S. Durable Goods Orders; BHP Advances

By Chen Shiyin

Aug. 28 (Bloomberg) -- Asian stocks rose for a second day, led by mining companies and banks, after U.S. orders for durable goods unexpectedly advanced in July and concern eased that credit-market losses will widen.

BHP Billiton Ltd. climbed 1.8 percent as optimism the world's largest economy is recovering spurred gains in prices of copper and other metals. Hyundai Heavy Industries Co. advanced 1.7 percent after the world's biggest shipbuilder said July sales increased 36 percent. Westpac Banking Corp. rose 1.8 percent in Sydney after Fannie Mae and Freddie Mac sold $3 billion in debt at yields that suggest the U.S. mortgage-finance companies won't need a government bailout.

The MSCI Asia Pacific Index climbed 0.4 percent to 123.30 as of 9:22 a.m. in Tokyo, extending yesterday's 0.4 percent advance. About three stocks rose for every two that dropped among the gauge's 988 members.

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 added 0.3 percent to 12,794.67, halting a two-day, 1 percent retreat. Ricoh Co., the country's second-largest maker of office machines, jumped 4.9 percent after agreeing to buy equipment distributor Ikon Office Solutions Inc. for $1.62 billion. Stock indexes also advanced in South Korea and Australia.

U.S. stocks rose yesterday after the Commerce Department said orders for goods mean to last several years advanced 1.3 percent in July. Fannie Mae and Freddie Mac posted the biggest gains on the Standard & Poor's 500 Index, rallying more than 15 percent each.

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