July 30 (Bloomberg) -- Asian stocks rebounded from a one- month low after higher profits at JFE Holdings Inc. and Nippon Steel Corp. offset concern U.S. housing investment is dropping.

Canon Inc., the world's largest digital-camera maker, and Macquarie Bank Ltd., Australia's biggest investment bank, led declines on speculation the housing slump will slow U.S. consumer spending and end a global boom in takeovers.

``Earnings this quarter are extremely good,'' said Hisakazu Amano, who helps oversee about $16 billion at T&D Asset Management Co. in Tokyo. ``Of course the U.S. is a concern, but we can see that companies are doing more business in Asian countries such as China where growth is assured to continue.''

China Life Insurance Co. helped lead China's CSI 300 Index to a record high after the insurer said first-half profit probably more than doubled from a year ago. South Korea's Kospi index rebounded from a two-day fall after a report showed industrial production in June increased almost twice as much as expected.

The Morgan Stanley Capital International Asia Pacific Index climbed 0.5 percent to 155.30 as of 5:54 p.m. in Tokyo, after earlier dropping as much as 0.8 percent. It tumbled 3 percent on July 27 to the lowest since June 29, contributing to a $2.1 trillion rout on global stock markets.

Japan's Topix index climbed 0.4 percent, while the Nikkei 225 Stock Average closed little changed at 17,289.30. Both measures reversed declines of as much as 1.4 percent. Mitsubishi UFJ Financial Group Inc. slipped on concern the ruling Liberal Democratic Party's loss of its upper house majority will hold up legislation in Japan.

Benchmarks gained across the region except for Taiwan, New Zealand, Malaysia and Philippines. Pakistan's key measure was little changed. Thailand's market is closed for a holiday today.

Higher Profits

JFE jumped 5 percent to 8,350 yen. Net income rose 63 percent to 89.4 billion yen ($754 million) in the three months ended June 30 after the company raised prices for the metal to shipbuilders, it said today. It also plans to buy back as much as 20 million shares. The stock.

Nippon Steel, the world's second-biggest producer, climbed 3.9 percent to 918 yen. First-quarter profit gained 16 percent to 86.7 billion yen, the company said.

South Korea's Posco, Asia's third-biggest steelmaker, rose 2.3 percent to 529,000 won. Baoshan Iron & Steel Co., the largest in China, jumped 7 percent to 13.49 yuan.

``Steelmakers are among the few stocks that investors find relatively cheap compared with shares in other industries,'' said Zheng Tuo, who manages the equivalent of $790 million at Bank of Communications Schroder Fund Management Co. in Shanghai.

China Life Gains

China Life led gains in China after the insurer said first- half profit probably more than doubled from a year ago because of business growth and ``substantial'' investment returns.

The nation's biggest insurer, gained 3.2 percent to 48.51 yuan. Ping An Insurance (Group) Co., the second biggest, rose 1.5 percent to 81.33 yuan.

Elsewhere, Nidec Corp. jumped 15 percent to 7,720 yen. The world's biggest maker of motors for hard-disk drives said first- quarter net income rose 26 percent to 11.1 billion yen.

State Bank of India, the nation's biggest financial services company, added 5.3 percent to 1,579 rupees. Net income rose 78 percent to 14.3 billion rupees ($352 million) for the quarter as the bank earned higher fees income, contained costs, and gained from writing back provisions on bad loans, the Mumbai-based company said July 28.

Hindustan Unilever Ltd., India's biggest household-products maker, surged 6.3 percent to 208.75 rupees. Net income rose 29 percent from a year earlier to 4.93 billion rupees on higher prices of soap and detergent.

U.S. Shares Slide

U.S. shares plunged on July 27 for a second day, sending the Standard & Poor's 500 Index to its worst weekly drop in five years. U.S. residential investment fell at an annual rate of 9.3 percent last quarter, after contracting by 16 percent in the previous three months, the Commerce Department said on July 27.

Consumer spending slowed to an annual 1.3 percent pace, from 3.7 percent in the first quarter, indicating the housing crisis has started to affect consumption habits. The report also showed the U.S. economy expanded by a faster-than-forecast 3.4 percent.

Canon, which generated almost a third of its sales last year from North America, slid 2.6 percent to 6,340 yen. Chartered Semiconductor Manufacturing Ltd., the world's third- largest custom-chip maker, lost 4.2 percent to S$1.15.

``The housing-market problems may have a bigger-than- expected damping effect on the U.S. economy,'' said Kim Han Jin, vice president of Fides Investment Management in Seoul, which manages $1 billion in equities. ``People want to cut their holdings of riskier assets.''

Macquarie, Samsung

Macquarie, Australia's No. 1 investment bank, slid 1.4 percent to A$80 on concern the housing slump will end a global boom in takeovers and dent advisory fees. Cadbury Schweppes Plc last week became the first company to delay an acquisition because of ``extreme volatility'' in debt markets.

``Macquarie is being hit with the credit spreads blowout, so it's becoming tougher to finance deals,'' said Steven Marsh, who helps manage the equivalent of $563 million at Trust Co. in Sydney.

Samsung Electronics Co., South Korea's largest exporter, rose 2.4 percent to 61,000 won. LG Electronics Inc., the second biggest, rose 1.3 percent to 77,000 won.

South Korea's manufacturing production advanced 1.9 percent from May, when it climbed 1 percent, the National Statistical Office said today. The median estimate of economists in a Bloomberg News survey was for a 1 percent gain.

Upper House Loss

``Exports will stay firm with strong shipments to Asia and Europe, while those to the U.S. will be so-so,'' said Chung Yun Sik, who oversees $7.6 billion at UBS Hana Asset Management Co. in Seoul. ``Other global economies now have a bigger sway over Korea, which helps ease the recent concerns coming from the U.S.''

Mitsubishi UFJ, Japan's largest lender, dropped 1.6 percent to 1.27 million yen. Sumitomo Mitsui Financial Group Inc., the third biggest, lost 0.9 percent to 1.09 million yen.

The LDP and its coalition partner New Komeito won 46 seats, less than 64 needed to keep their majority, according to the internal affairs ministry. The Democratic Party of Japan won 60 seats, replacing the LDP as the upper house's largest party for the first time since 1955.

Following the defeat, Abe reiterated that he will not resign as Prime Minister.

Seiko Epson Plunges

``The LDP's loss was much bigger than stock investors anticipated,'' said Kiyoshi Ishigane, who helps oversee $61 billion in assets at Mitsubishi UFJ Asset Management Co. in Tokyo.

Meanwhile, Seiko Epson Corp. plummeted 13 percent to 3,330 yen, the biggest percentage decline on the MSCI World Index. Credit Suisse Group analyst Kunihiko Kanno cut its rating on the world's second-biggest maker of inkjet printers to ``underperform'' from ``neutral,'' saying the share price is ``overvalued.''

PetroChina Co., the nation's largest oil producer, tumbled 3.2 percent to HK$11.38. Warren Buffett's Berkshire Hathaway Co. sold 16.9 million PetroChina shares for about $27 million, reducing its share of the stock issued in Hong Kong to investors other than the Chinese government to 10.96 percent from 11.05 percent, PetroChina said.

Baoshan Iron & Steel Co. (600019 CH)
Canon Inc. (7751 JT)
Chartered Semiconductor Manufacturing Ltd. (CSM SP)
China Life Insurance Co. (601628 CH)
Hindustan Unilever Ltd. (HUVR IN)
JFE Holdings Inc. (5411 JT)
LG Electronics Inc. (066570 KS)
Macquarie Bank Ltd. (MBL AU)
Mitsubishi UFJ Financial Group Inc. (8306 JT)
Nidec Corp. (6594 JT)
Nippon Steel Corp. (5401 JT)
PetroChina Co. (857 HK)
Ping An Insurance (Group) Co. (601318 CH)
Posco (005490 KS)
Samsung Electronics Co. (005930 KS)
Seiko Epson Corp.
State Bank of India (SBIN IN)
Sumitomo Mitsui Financial Group Inc. (8316 JT)

To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: July 30, 2007 06:08 EDT