Oct. 24 (Bloomberg) -- Asian stocks rose for a fourth day, led by Toyota Motor Corp. and Taiwan Semiconductor Manufacturing Co., on speculation slumping energy prices will prompt the Federal Reserve to leave U.S. interest rates unchanged this week.

``Falling oil prices will help U.S. spending and make the Fed more likely to leave rates as they are,'' said Kim Seung Woo, who helps manage about $400 million in equities at Macquarie-IMM Investment Management Co. in Seoul. ``That's good for exporters.''

Cathay Financial Holding Co. gained after a report said Taiwan's regulator will allow insurers to buy stakes in Chinese banks. NTT DoCoMo Inc. and KDDI Corp., Japan's two biggest mobile phone operators, tumbled after Softbank Corp. said it will undercut prices charged by its larger rivals.

The Morgan Stanley Capital International Asia-Pacific Index added 0.1 percent to 131.88 at 6:18 p.m. in Tokyo, set for its highest close since May 19. Japan's Nikkei 225 Stock Average dropped 0.1 percent. All other markets open in the region gained except in New Zealand and Australia.

China Petroleum & Chemical Corp. led the Shanghai Composite Index up 2.6 percent, Asia's biggest gain. Markets in India, Indonesia, Malaysia, Pakistan, the Philippines and Singapore are closed today for holidays.

The decline in oil helped push the Standard & Poor's 500 Index yesterday to its highest since December 2000. Oil futures in New York lost 2.8 percent in the past three days. Futures have plunged 25 percent from the record of $78.40 a barrel on July 14.

Fed Meeting

Consumer spending, which accounts for about 70 percent of the U.S. economy, grew at an annual rate of 3.1 percent last quarter, up from a 2.6 percent gain the previous three months, the Commerce Department will say on Oct. 27 according to analysts in a Bloomberg News survey.

Toyota, the world's second-largest automaker, gained 1 percent to 7,030 yen. Taiwan Semiconductor, the world's largest maker of customized chips, climbed 2.9 percent to NT$63.

Stocks also rose as Fed officials prepare to begin a two-day meeting later today. All 106 economists surveyed by Bloomberg News expect the Fed to keep interest rates unchanged for a third straight month as the housing market slows. That decision may boost sentiment among U.S. consumers, fueling demand for Asian goods in the region's largest export market.

Samsung Electronics Co., South Korea's biggest exporter, gained 0.2 percent to 626,000 won. Hyundai Motor Co., which got 29 percent of its overseas sales from the U.S. last year, rose 0.8 percent to 78,400 won. Li & Fung Ltd., a Hong Kong company that sells goods to Wal-Mart Stores Inc., climbed 1 percent to HK$21.

`Looking Positive'

``The U.S. business environment is looking positive and stocks are taking their cue from that,'' said Hiroyoshi Nakagawa, who helps to look after about $1 billion in Asian equities at Societe Generale Asset Management Co. in Tokyo.

The Fed had previously raised borrowing costs 17 straight times to stem inflation. A government report due on Oct. 27 may show that the U.S. economy grew at a 2 percent annual rate in the July through September period, according to economists, easing from a 2.6 percent rate in the second quarter.

Taiwan's Cathay Financial Holding gained 0.8 percent to NT$65.60 after the Economic Daily News reported the island's regulator will allow insurers to buy stakes in Chinese banks. Cathay Financial is the parent company of Cathay Life Insurance Co., the island's biggest insurer.

KDDI, DoCoMo, Softbank

KDDI dropped 7.1 percent to 728,000 yen, the biggest slide since Nov. 11, 2002. DoCoMo declined 2.1 percent to 184,000 yen. Softbank, Japan's third-largest wireless carrier, fell 1.1 percent to 2,655 yen.

Softbank yesterday slashed prices of phone packages to woo customers who can from today switch carriers without changing phone numbers. The company will undercut competitors' offers within 24 hours, ensuring its monthly charges will always be 200 yen cheaper, Chief Executive Officer Masayoshi Son said.

``Softbank may be starting a price war, and that would be negative for all three companies, but for the moment investors are cheering Softbank's move to expand market share,'' said Nakagawa.

Fujitsu Ltd., a Japanese supplier of network equipment, mobile phones and semiconductors, rose 2.4 percent to 1,036 yen. Net income rose to 14.1 billion yen ($118 million) in the three months to Sept. 30, from 5.17 billion yen a year earlier.

Hong Kong Exchanges & Clearing Ltd. rose for a ninth day, adding 0.6 percent to HK$62.55 on speculation new listings will spur trading on Hong Kong's bourse, boosting revenue.

Industrial & Commercial Bank of China Ltd., China' biggest lender, last week raised a record $19.1 billion in the world's largest IPO. The stock will start trading in Hong Kong on Oct. 27. Hong Kong Exchanges has advanced 9.1 percent in the past nine days.

``Hong Kong Exchanges' revenue will benefit from ICBC and recent big IPOs,'' said Teresa Chow, who helps manage $500 million at RBC Investment Management Asia in Hong Kong. She said the shares are ``overbought,'' having almost doubled this year.

China, Steel

The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, posted its biggest gain in more than four months on expectations corporate profits will boost demand for the nation's shares.

China Petroleum, Asia's biggest refiner, added 6.4 percent to 5.99 yuan on speculation lower oil prices will lift earnings. Baoshan Iron & Steel Co., China's biggest steelmaker, added 1.6 percent to 4.33 yuan. Maanshan Iron & Steel Co., the second- biggest Hong Kong-listed Chinese steelmaker, rose 6.1 percent to 2.98 yuan.

China's National Bureau of Statistics reported that profit growth at Chinese industrial companies accelerated in September for a sixth straight month as steelmakers benefited from higher prices. Combined net income rose 29.6 percent to 1.3 trillion yuan ($165 billion) through last month after climbing 29.1 percent in the first eight months.

``We are still buying stocks,'' said Tony Zheng, who helps oversee $1.95 billion at Fortis Haitong Investment Management Co. in Shanghai. ``Stocks with attractive valuations will still provide very good profits for investors.''

Baoshan Iron & Steel Co. (600019 CH)
Cathay Financial Holding Co. (2882 TT)
China Petroleum & Chemical Corp. (600028 CH)
Fujitsu Ltd. (6702 JT)
Hong Kong Exchanges & Clearing Ltd. (388 HK)
Hyundai Motor Co. (005380 KS)
KDDI Corp. (9433 JT)
Li & Fung Ltd. (494 HK)
Maanshan Iron & Steel Co. (600808 CH)
NTT DoCoMo Inc. (9437 JT)
Samsung Electronics Co. (005930 KS)
Softbank Corp. (9984 JT)
Taiwan Semiconductor Manufacturing Co. (2330 TT)
Toyota Motor Corp. (7203 JT)

To contact the reporter on this story: Darren Boey in Hong Kong at dboey@bloomberg.net.

Last Updated: October 24, 2006 05:19 EDT