June 15 (Bloomberg) -- Asian stocks rose for a second day, led by BHP Billiton Ltd. and Sumitomo Metal Mining Co., after prices of copper, nickel and crude oil climbed.
``Globally, economic growth looks strong enough to sustain high levels of demand for commodities,'' said Hans Kunnen, who helps manage $107 billion at Colonial First State Global Asset Management in Sydney. ``You can expect strength to continue in related stocks for as long as that view holds.''
China Construction Bank Corp. led Hong Kong's Hang Seng Index to a record high after saying it plans to sell shares valued at $5.5 billion in Shanghai. Cathay Financial Holding Co. paced Taiwan's Taiex index to its highest in almost seven years after the island's lawmakers approved a bill to allow insurers to invest more of their assets overseas.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.6 percent to 151.55 as of 6:40 p.m. in Tokyo, set for a 0.7 percent gain this week. Raw materials and energy-related shares jumped the most among the benchmark's 10 industry groups.
Japan's Nikkei 225 Stock Average added 0.7 percent. Toyota Motor Corp. led exporters higher after the yen fell to the lowest against the dollar in four years, boosting the value of U.S. sales. Benchmarks in South Korea, Singapore, the Philippines and Indonesia also closed at new highs.
BHP, the world's biggest mining company, added 0.3 percent to A$34. Sumitomo Metal Mining, Japan's second-biggest copper smelter and No. 1 nickel producer, advanced 2.8 percent to 2,720 yen. Cnooc Ltd., China's biggest offshore oil producer, rose 1.9 percent to HK$8.46 in Hong Kong.
Construction Bank
A measure of six metals traded on the London Metal Exchange gained 1.9 percent yesterday. Copper prices added 2.2 percent while nickel jumped 4.9 percent. Crude oil rose 2.1 percent in New York. Commodity prices have been driven up by demand from China, which said today that factory and property investment had surged.
SK Corp., South Korea's biggest oil refiner, added 6.6 percent to 130,000 won after Daewoo Securities Co. said earnings will improve on strong gasoline prices and easing competition.
Construction Bank, the nation's third-largest lender, climbed 3.2 percent to HK$4.91 in Hong Kong. Bank of China Ltd., the No. 3, added 1.3 percent to HK$3.85. The Hang Seng Index closed at a record 21,017.05.
Construction Bank said it may sell 9 billion yuan- denominated shares to raise as much as $5.5 billion in Shanghai, where valuations are higher. The stock sale would be the nation's biggest this year.
``The overall trend for companies to list in the mainland is a solid positive factor,'' said Renee Hung, who helps manage $3.5 billion at Value Partners Ltd. in Hong Kong. ``Shares of these companies will have a short-term run.''
Separately, Bank of China shareholders approved the sale of as much as 3 billion yuan ($392 million) of bonds in Hong Kong in what may be the city's first sale of Chinese-currency debt.
Taiwan Insurers
Cathay Financial, Taiwan's largest life insurer, advanced 3.5 percent to NT$74.10. Fubon Financial Holding Co., the island's biggest property insurer, added 2.4 percent to NT$29.45. The Taiex index rose 1.5 percent to its highest close since July 2000.
Taiwan's parliament yesterday approved a bill allowing the island's insurers to invest up to 45 percent of their assets abroad, raising the ceiling from 35 percent. The move will allow Taiwanese insurance companies to invest NT$700 billion ($21.1 billion) more abroad, Susan Chang, deputy chairwoman of the Financial Supervisory Commission, said.
``Parliament's decision gives more room for Taiwan insurers to maximize profitability by investing globally,'' said Yin Nai- yun, who oversees $172 million at Prudential Securities Investment Trust Enterprise in Taipei.
Yen, Exporters
Toyota, Japan's largest automaker, added 1.6 percent to 7,690 yen. Honda Motor Co., its No. 2 automaker by sales, gained 1.9 percent to 4,350 yen. Toyota generated more than a third of its fiscal 2006 revenue in North America while Honda had 55 percent of its sales there.
The yen weakened to as low as 123.13 to the dollar yesterday, the first time it has fallen to the 123 level since December 2002. Japan's currency also dropped against the euro for a second day, losing 0.2 percent to 163.63 yen. It changed hands at 123.02 to the dollar and 163.86 to the euro at the close of Japanese stocks trading.
A weaker yen increases the value of Japanese exporters' overseas sales when converted back to local currency, while their products become more competitive abroad.
China Stocks
China's CSI 300 jumped 6.8 percent this week, its best performance since the five days ended April 6, as savings rates that trail inflation prompt investors to switch funds into equities. The measure is about 70 points from its record close on May 29.
Shanghai Pudong Development Bank Co., the Chinese partner of Citigroup Inc., jumped 5 percent to 35.91 yuan. Youngor Group Co., China's No. 1 maker of men's clothing by sales, climbed 4.2 percent to 29.28 yuan. The stocks gained 14 percent and 15 percent, respectively, this week.
Household yuan deposits fell by 278.4 billion yuan ($36.4 billion) in May, after sliding in April for the first time since February 2003, according to the central bank. The CSI 300 has doubled this year, while savings rates offered by banks are capped at the central bank's one-year deposit rate of 3.06 percent --less than the 3.4 percent inflation rate.
``Fresh liquidity keeps coming into the market and that will continue to push share prices higher,'' said Fan Dizhao, who helps manage about $1.8 billion at Guotai Asset Management Co. in Shanghai.
Meanwhile, Yahoo Japan Corp., a unit of world's most- visited Internet directory, climbed 3.8 percent to 43,350 yen. The company will partner with Apple Inc. to sell music via Apple's iTunes Music Store, the Nikkei newspaper reported.
EnTie Commercial Bank, a Taipei-based lender, surged 6.9 percent to NT$8.36. Longreach Group, a buyout firm founded by former UBS AG investment banker Mark Chiba, agreed to pay NT$18.8 billion ($567.3 million) for a 51 percent stake of EnTie on a fully diluted basis.
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