Asian Stocks Gain as Commodity Prices Rise; Hitachi Advances

Oct. 7 (Bloomberg) -- Asian stocks rose for a second day, led by mining companies, after prices for metals and oil advanced on speculation the world economy is recovering.

BHP Billiton Ltd., the world’s biggest mining company, gained 2.2 percent in Sydney. Newcrest Mining Ltd., Australia’s largest gold producer, surged 6.6 percent after prices for the metal climbed to a record. Hitachi Ltd., a nuclear reactor maker, added 7.7 percent in Tokyo as Mizuho Securities Co. raised its recommendation on the stock.

“What’s behind the rising commodity prices is the recovery in the global economy,” said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. in Tokyo.

The MSCI Asia Pacific Index gained 1 percent to 116.79 as of 10:02 a.m. in Tokyo, extending yesterday’s 1.7 percent advance. The gauge has climbed 65 percent in the past seven months amid signs the global economy is emerging from its worst slowdown since World War II.

Japan’s Nikkei 225 Stock Average increased 1.1 percent, while Australia’s S&P/ASX 200 Index rose 1.5 percent. South Korea’s Kospi Index climbed 1.1 percent and Taiwan’s Taiex Index gained 1.1 percent.

Futures on the U.S. Standard & Poor’s 500 Index were little changed. The gauge added 1.4 percent yesterday on speculation third-quarter earnings will top estimates. Alcoa Inc. is scheduled to release third-quarter results later today, the first company in the Dow Jones Industrial Average to report.

Material stocks accounted for 30 percent of the MSCI Asia Pacific Index’s advance today after gold futures climbed as much as 2.7 percent to a record $1,045 an ounce in New York, while copper increased for a second day with a 2.1 percent increase. Crude oil rose 0.7 percent.

Dollar Decline

BHP gained 2.2 percent to A$37.46, while Rio Tinto Group, the world’s third-largest mining company, climbed 3.8 percent to A$59.90. Newcrest jumped 6.6 percent to A$35.09. Inpex Corp., Japan’s largest oil explorer, rose 2.1 percent to 748,000 yen.

Raw-material prices climbed as the dollar’s decline spurred demand for commodities as a hedge against inflation. The Dollar Index, which measures the U.S. currency against six major counterparts, traded near a two-week low as speculation the Federal Reserve will trail other central banks in raising interest rates made the greenback less attractive.

The dollar weakened to as much as 88.65 yen overnight, from 88.98 at the 3 p.m. close of Tokyo stock trading yesterday.

Hitachi climbed 7.7 percent to 294 yen after Mizuho Securities raised its investment rating on the company to “strong buy” from “hold.”