Asian Resources Stocks Rise on Commodity Rally; Banks Fall

By Jonathan Burgos

March 20 (Bloomberg) -- Asian commodity stocks climbed on a rally in oil and metal prices, offsetting declines by banks amid skepticism U.S. and Japanese plans to purchase bonds will ease the financial crisis.

BHP Billiton Ltd., the world’s largest mining company, rose 4.3 percent in Sydney, while Posco, Asia’s third-largest steelmaker, gained 2.6 percent in Seoul. Commonwealth Bank of Australia, the nation’s largest mortgage lender, fell 2.9 percent, tracking declines by U.S. financial shares. Japan’s stock market is closed for a public holiday.

“Investors are switching out from banks and into the resources stocks because they’re waiting for signs of improvement in the credit markets,” said Rob Patterson, who manages about $2 billion at Argo Investments Ltd. in Adelaide, Australia.

The MSCI Asia Pacific excluding Japan Index was little changed at 236.31 as of 9:42 a.m. in Hong Kong, taking its advance this week to 6.3 percent. The gauge that includes Japan has climbed 7.8 percent in the past five days, the most since August 2007, as banks including Barclays Plc and Standard Chartered Plc reported “strong” starts to the year.

South Korea’s Kospi climbed 1.3 percent, while Australia’s S&P/ASX 200 Index lost 0.1 percent. Benchmark indexes in New Zealand, Singapore and Malaysia declined, while Taiwan’s rose.

Futures on the Standard & Poor’s 500 Index fell 0.5 percent. The gauge dropped 1.3 percent yesterday, led by financial shares, which had risen in seven of the previous eight days. The decline halted the S&P 500’s rebound from the 12-year low reached on March 9, paring the gain to 16 percent.

Commodities Rally

BHP gained 4.3 percent to A$32.60 as a measure of six metals jumped 5.6 percent yesterday in London. Rio Tinto Group, the world’s third-largest mining company, added 3.7 percent to A$47.18. Posco rose 2.6 percent to 356,500 won.

Other commodities followed gains in metals, with the Reuters/Jefferies CRB Index of 19 commodity prices climbing 5.3 percent, the biggest gain since Dec. 31.

Woodside Petroleum Ltd., Australia’s second-largest oil producer, added 1.7 percent to A$37.59 as crude oil futures surged 7.2 percent yesterday to $51.61 a barrel, the highest settlement since Nov. 28. Santos Ltd., the nation’s third- largest oil and gas producer, jumped 4.6 percent to A$16.05.

Newcrest Mining Ltd., Australia’s biggest gold producer, rose 2.7 percent to A$33.97. Lihir Gold Ltd. climbed 3.1 percent to A$3.36. Bullion jumped 7.8 percent in New York, the most in six months, as a Federal Reserve plan to buy debt weakened the dollar and revived concerns inflation will accelerate.

Commonwealth Bank of Australia fell 2.9 percent to A$33.03 in Sydney. Macquarie Group Ltd., Australia’s largest investment bank, dropped 3.6 percent to A$23.71.

A gauge of finance stocks on the MSCI Asia Pacific excluding Japan Index fell 1.1 percent, snapping a five-day, 15 percent rally. The comments this week from Barclays and Standard Chartered added to similar statements from Citigroup Inc. and Bank of America Corp., which fueled speculation the worst of the financial crisis is over.

To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.