Australia Stocks: James Hardie, Just, Kagara, Newcrest, Santos

By Shani Raja

Aug. 6 (Bloomberg) -- The S&P/ASX 200 Index jumped 136.60 points, or 2.8 percent, to 4,957 at 10:25 a.m. in Sydney, the most since July 21. The broader All Ordinaries Index added 130.60, or 2.7 percent, to 5,012.60, while the futures index expiring in September gained 2 percent to 4,922.

U.S.-linked stocks: James Hardie Industries NV (JHX AU), the biggest seller of home siding in the U.S., rose 21 cents, or 4.5 percent, to A$4.85, extending yesterday's 1.3 percent advance. Westfield Group (WDC AU), which owns 59 shopping malls in the U.S., advanced 69 cents, or 4.3 percent, to A$16.80, the highest since July 24.

U.S. stocks rallied the most since April as oil retreated to a three-month low and the Federal Reserve predicted inflation will ease through next year. Sears Holdings Corp. jumped, sending the Standard & Poor's 500 Consumer Discretionary Index to its steepest advance in five years. The S&P 500 added 35.87, or 2.9 percent, to 1,284.88.

Asciano Ltd. (AIO AU), the Australian port and railroad operator fighting a bid from David Bonderman's TPG Capital, lost 21 cents, or 4.2 percent, to A$4.83, the most since July 8, after posting a net loss of A$182 million ($167 million) in the 17 months ended June 30.

Just Group Ltd. (JST AU) rallied 17 cents, or 5.1 percent, to A$3.49, partly reversing yesterday's 7.8 percent decline. Premier Investments Ltd., controlled by Australian billionaire Solomon Lew, increased its stake in Just Group to exceed 50 percent, ensuring support from the target's board for a A$774 million ($712 million) takeover bid.

Kagara Ltd. (KZL AU) added 16 cents, or 5.7 percent, to A$2.98. The Australian supplier to Korea Zinc Co. may increase copper production from its Australian mines by 34 percent in the year to June 30, 2009, and more than double zinc output within two years. Annual copper production will increase to as much as 40,000 tons from 26,329 tons now, Executive Chairman Kim Robinson said at a conference in Kalgoorlie, Western Australia.

Newcrest Mining Ltd. (NCM AU) slumped 81 cents, or 3.1 percent, to A$25.50, the lowest since September 2007. Gold fell below $900 an ounce for the first time since June in New York as the dollar's rebound and plunging energy costs reduced the appeal of the precious metal as a hedge against inflation.

Santos Ltd. (STO AU) dropped 33 cents, or 2 percent, to A$16.62, the lowest since April 30. Crude oil fell, closing below $120 a barrel for the first time in three months, amid signs demand may be curtailed by slowdowns in the U.S. and European economies.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.