Australian Bank Stocks Gain on Westpac Earnings; BHP Declines

May 6 (Bloomberg) -- Australian bank shares rose on earnings from Westpac Banking Corp., outweighing declines by the country’s mining companies on lower copper and oil prices. South Korean shipping stocks advanced as cargo rates climbed.

Westpac, Australia’s biggest lender by market value, climbed 2.6 percent as it reported a 6 percent drop in first- half profit and as bond risk fell. BHP Billiton Ltd., the world’s biggest mining company, fell 1.2 percent.

“I think this result will be taken well for Westpac for sure, as there were no real surprises,” said Prasad Patkar, who helps manage the equivalent of about $800 million at Platypus Asset Management in Sydney. “It is also likely to be seen as good for the banking sector as a whole.”

Australia’s S&P/ASX 200 Index advanced 0.1 percent to 3,892.90 at 10:57 a.m. in Sydney. New Zealand’s NZX 50 Index gained 0.5 percent, while South Korea’s Kospi added 0.1 percent. Japan’s market is closed for a holiday. The MSCI Asia Pacific excluding Japan Index was little changed, having risen 20 percent since the start of the year.

Futures on the U.S. Standard & Poor’s 500 Index declined 0.2 percent. The gauge lost 0.4 percent yesterday as speculation grew that government stress tests will show some banks need more capital.

Westpac climbed 2.6 percent to A$20. The bank said cash earnings dropped to A$2.29 billion ($1.7 billion) in the six months ended March 31, from A$2.44 billion a year ago, using pro-forma numbers adjusted to reflect last year’s takeover of St. George Bank Ltd. Bad debts for the half totaled A$1.61 billion.

Baltic Dry

BHP fell 1.2 percent to A$34.08. Rio Tinto Group, the world’s third-largest mining company, slid 1.9 percent to A$69.61. Copper futures in New York dropped 2.9 percent to $2.0825 a pound yesterday.

Harvey Norman Holdings Ltd., Australia’s largest electrical retailer, lost 3.6 percent to A$3.21. The stock was cut to “underweight” from “neutral” at JPMorgan Chase & Co.

STX Pan Ocean Co., South Korea’s biggest bulk carrier, rose 2.5 percent to 12,400 won. Korea Line Corp., the second biggest, climbed 3.6 percent to 81,000 won.

The Baltic Dry Index, which measures commodity-shipping rates, gained the most in almost three months on demand to haul coking coal and iron ore to make steel. The gauge surged 5 percent yesterday, according to the Baltic Exchange, the biggest leap since Feb. 10.