Aug. 4 (Bloomberg) -- Asian stocks fluctuated as commodities producers climbed on higher oil and metal prices, while Japanese makers of cars and motorcycles fell after Yamaha Motor Co. and Suzuki Motor Corp. reported earnings.

BHP Billiton Ltd., the world’s largest mining company, and Rio Tinto Group both rose more than 2 percent in Sydney. HSBC Holdings Plc, Europe’s biggest bank, gained 7 percent in Hong Kong after profit exceeded analysts’ estimates. Suzuki, Japan’s second-largest maker of minicars, fell 5 percent in Tokyo after earnings were almost wiped out, and Yamaha, the world’s No. 2 maker of motor bikes, sank 9.9 percent after forecasting a loss.

The MSCI Asia Pacific Index added 0.2 percent to 113.29 as of 7:32 p.m. in Tokyo, paring an increase of as much as 1.1 percent after Yamaha’s forecast. Almost as many stocks advanced as declined. The gauge rose in 15 of the last 16 days.

“There are early indications that the economy is bottoming out,” said Ivan Tham, Singapore-based head of fund management at state-backed Kuwait Finance House, which has about $24 billion in assets. “I’m a bit more cautious, as valuations have run ahead of fundamentals following the recent rally.”

The MSCI Asia Pacific advanced to the highest level since Sept. 26 today, swelling average prices to 24.6 times estimated earnings, compared with 18 times at the start of the year, according to data compiled by Bloomberg.

Manufacturing Outlook

The Nikkei 225 Stock Average rose 0.2 percent to 10,375.01 in Tokyo, and most Asian benchmarks advanced. Kawasaki Kisen Kaisha Ltd., Japan’s third-largest shipping line, climbed the most in the Nikkei on speculation higher commodity prices and improving economic prospects will boost global trade. Hong Kong property developers retreated, led by China Overseas Land & Investment Ltd., on concern revenue from China will fall.

Futures on the Standard & Poor’s 500 Index fell 0.8 percent today. The gauge advanced 1.5 percent and closed above 1,000 for the first time since November in New York yesterday. The MSCI World Index added 2 percent yesterday, its steepest increase in almost three weeks, after reports from China, Europe and the U.S. showed an improved outlook for manufacturing.

BHP Billiton gained 2 percent to A$38.84. Rio Tinto Ltd., the world’s third-largest mining company, climbed 4.3 percent to A$62.88. Mitsubishi Corp., a Japanese trading house that gets about half its profit from commodities, advanced 2.1 percent to 1,956 yen.

A gauge of six metals in London gained 4.9 percent to a level not seen since Oct. 3. Crude oil rallied 3.1 percent to $71.58 a barrel in New York yesterday, the highest settlement since June 12.

Shipping Lines Gain

Shipping lines advanced the most of 33 industries in Japan’s Topix index. Mitsui O.S.K. Lines Ltd., the world’s largest operator of iron-ore vessels, added 1.4 percent to 597 yen. Kawasaki Kisen Kaisha rose 5.9 percent to 375 yen. China Shipping Container climbed 6 percent to HK$3.53 in Hong Kong.

“Government spending and looser monetary policies worldwide will bring the global economy and company earnings to a clear recovery in 2010,” said Masayuki Kubota, a senior fund manager at Daiwa SB Investments Ltd., which manages $37 billion in assets. “The recovery will be short-lived after authorities tighten budgets and monetary policies.”

The MSCI Asia Pacific Index has climbed 16 percent in the past three weeks as earnings from Apple Inc. and Lafarge SA to Nissan Motor Co. and Samsung Electronics Co. exceeded analysts’ estimates. Of the 969 companies in the gauge, 159 are scheduled to report earnings this week, according to Bloomberg data.

Asia Outpaces World

The gains have brought the MSCI Asia Pacific within 2.5 percent of its level before Lehman Brothers Holdings Inc. filed for bankruptcy on Sept. 15, while the MSCI World Index is down more than 15 percent.

Five of the world’s 10 biggest companies by market value -- PetroChina Co., Industrial & Commercial Bank of China Ltd., China Mobile Ltd., China Construction Bank Corp. and China Petroleum & Chemical Corp. -- are based in Asia, and a sixth -- U.K.-based HSBC -- gets the bulk of its earnings in the region.

Yamaha had the steepest drop today in the MSCI World, slumping 9.9 percent to 1,096 yen after forecasting a first-half net loss that’s four times wider than its previous projection.

Suzuki sank 5 percent to 2,300 yen after saying first- quarter net income dropped 92 percent. Transportation companies had the steepest decline of any industry group in the Topix.

Hong Kong developers retreated after the Shanghai Securities News said transactions in Shanghai declined for the first time in seven months in July, and purchases dropped in Guangzhou and Shenzhen for two consecutive months.

China Overseas Land & Investment slipped 4.6 percent to HK$18.52, the sharpest decline on the Hang Seng Index. Hang Lung Properties Ltd. slid 3 percent to HK$27.45.

HSBC Advances

HSBC advanced 7 percent to HK$83.10 after reporting yesterday an unexpected first-half profit as earnings from its securities unit more than doubled and bad-loan charges increased more slowly than estimated. Net income declined to $3.35 billion from $7.72 billion. HSBC set aside $13.9 billion to cover bad loans, compared with a median estimate of $15.3 billion.

“Most banks are reporting positive earnings, but the fundamental story has not changed,” said Hans Goetti, who oversees more than $10 billion as chief investment officer of LGT Bank in Liechtenstein (Singapore) Ltd. “You still have a lot of toxic assets on the banks’ balance sheets. We still need to restructure the economy over time.”

Standard Chartered Plc, the U.K. bank that earns almost all its income in emerging markets, dropped 2.3 percent to HK$182.20, erasing earlier gains of 5.6 percent. The bank said it plans to raise 1 billion pounds ($1.7 billion) in a share sale after reporting first-half profit that exceeded analyst estimates.

Chip Stocks

Chip-related stocks advanced after the California-based Semiconductor Industry Association said yesterday semiconductor sales rose 17 percent worldwide in the three months to June 30 from the first quarter.

Samsung Electronics Co., the world’s largest maker of computer-memory chips, added 1.4 percent to 725,000 won, the biggest contributor to gains in the Kospi Index in Seoul. Advantest Corp., the world’s biggest maker of memory-chip testers, climbed 2.9 percent to 2,135 yen in Tokyo.

HTC Corp., the biggest maker of mobile phones using Google Inc.’s Android and Microsoft Corp.’s Windows operating systems, dropped 7 percent to NT$346.50 in Taipei after KGI Securities Co. joined brokerages including JPMorgan Chase & Co. in cutting the company’s ratings.

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

Last Updated: August 4, 2009 06:36 EDT