July 22 (Bloomberg) -- Asian stocks rose, led by mining companies and automakers, after metals prices gained and Lehman Brothers Holdings Inc. lifted its target on Honda Motor Co.

BHP Billiton Ltd., the world's largest mining company, advanced in Sydney as gold climbed for a second day. Sino Gold Mining Ltd. jumped after more than tripling output at a mine. Honda gained the most in seven weeks. Bharat Heavy Electricals Ltd., whose equipment lights three of every five homes in India, rose after first-quarter profit beat analysts' estimates.

``Money is still going into commodities stocks on expectations the sector will have more stable earnings than other areas,'' said Choi Min Jai, who helps manage about $5 billion at KTB Asset Management Co. in Seoul.

The MSCI Asia Pacific Index gained 1.6 percent to 133.38 as of 7:33 p.m. in Tokyo, with about two stocks gaining for each that declined.

Japan's Nikkei 225 Stock Average added 3 percent to 13,184.96, the most since May 29. Japanese stocks jumped as they resumed trading following a holiday yesterday, when Asia's benchmark index surged the most in four months. The country's shares extended gains in the afternoon after trading in futures resumed following a fault.

India's Sensitive Index added 1.8 percent. Most other Asian benchmark indexes declined. Australia's S&P/ASX 200 Index slipped 0.1 percent, led by National Australia Bank Ltd., after Citigroup Inc. cut its price target on the country's top five banks.

Global Slump

The MSCI index has lost 15 percent this year, part of a global slump in equities that has erased more about $13.3 trillion from an October record, as raw-material prices soared and the world's largest banks and securities firms reported more than $447 billion of writedowns and credit losses.

Standard & Poor's 500 Index futures fell 0.8 percent after lower-than-estimated earnings at American Express Co. and disappointing forecasts at Apple Inc. and Texas Instruments Inc.

BHP added 2.1 percent to A$39, while rival Rio Tinto Group advanced 1.9 percent to A$120.70. Sino Gold, owner of China's second-largest gold mine, jumped 13 percent to A$6.17. The company raised output at its Jinfeng project to take advantage of higher prices.

Gold rose in Asia for a second day, gaining 0.8 percent to $972.91 an ounce, as the dollar traded near a record low against the euro, boosting the appeal of the precious metal as an alternative investment. Copper also advanced for a second day, climbing 1.1 percent. A measure of six metals traded on the London Metal Exchange gained 0.7 percent yesterday.

Nippon Mining Holdings Inc., Japan's largest copper producer, gained 5.9 percent to 626 yen, the most since May 7.

Carmakers Gain

Honda, Japan's No. 2 automaker, advanced 5.3 percent to 3,600 yen, the most since June 4. Lehman Brothers raised its price estimate to 3,850 yen from 3,550 yen in a note dated July 18, citing higher-than-planned U.S. sales and a weaker yen.

Toyota Motor Corp., the biggest Japanese automaker, rose 5.6 percent to 4,910 yen and Nissan Motor Co. gained 2.9 percent to 841 yen.

Lenovo Group Ltd., China's biggest maker of personal computers, fell 5 percent to HK$5.30, the most in two weeks after International Business Machines Corp. offered to sell shares in the company. The stock also declined after JPMorgan Chase & Co. cut its recommendation on Lenovo shares to ``neutral'' from ``outperform'' today, citing a possible slowdown in sales growth.

National Australia, the country's largest bank, lost 2.4 percent to A$27.65. Commonwealth Bank of Australia, the nation's biggest provider of home loans, declined 0.8 percent to A$43.

Citigroup cut National Australia to ``sell'' from ``hold'' and lowered its estimate for bank profits by as much as 12 percent, citing bad debts and slowing lending.

Rating Cut

Australia & New Zealand Banking Group Ltd. lost 3.9 percent to A$18.07, the most in three weeks, after Morgan Stanley cut its stock rating to ``underweight'' from ``equal-weight,'' citing a deteriorating operating outlook in New Zealand.

Bharat Heavy added 6.1 percent to 1,597.4 rupees, the highest since May 30, after beating analysts' estimates with a 33 percent increase in first-quarter profit.

Taiwan Cement Corp., the island's largest supplier of the building material, gained 6 percent to NT$38.95, the most since July 7 and the second-biggest gainer on the Taiex index. United Daily News said the company expects demand to increase by 1 million metric tons, or 7 percent, as the government speeds up the award of irrigation contracts after Tropical Storm Kalmaegi hit the island last week, causing flooding and rockfalls.

CSL Ltd., which earns royalties from sales of Merck & Co.'s Gardasil vaccine for cervical cancer, tumbled 9.3 percent to A$33.30, the most since May 2003, after Merck said second- quarter sales of the drug declined. The stock had the third- biggest decline on MSCI's Asian gauge today.

To contact the reporter for this story: Chua Kong Ho at kchua6@bloomberg.net; Ian C. Sayson at

Last Updated: July 22, 2008 06:47 EDT