Aug. 21 (Bloomberg) -- Asian stocks rose for a second day, led by raw-materials producers, amid growing confidence the U.S. economy will withstand a rout in credit markets.

Aluminum Corp. of China Ltd. jumped after reporting earnings that beat analyst estimates and BHP Billiton Ltd. had its best two-day gain in almost six years. Nintendo Co. and Hon Hai Precision Industry Co. advanced on speculation sales to the U.S. will be sustained. Hong Kong Exchanges & Clearing Ltd. surged after China's government said yesterday it will allow some individual investors to buy shares listed in Hong Kong.

The Morgan Stanley Capital International Asia-Pacific Index climbed 1.2 percent to 144.36 at 6:48 p.m. in Tokyo, bringing its two-day advance to 5.3 percent. It's rebounding from an 8 percent slide last week, the largest weekly loss in 17 years, after the U.S. Federal Reserve on Aug. 17 cut the rate at which it makes direct loans to banks.

``Investors' fears of the U.S. subprime crisis have subsided,'' said Eric Chou, who helps manage $1.8 billion at Jih Sun Securities Investment Trust Co. in Taipei. ``The storm will eventually go away, along with its impact on consumer demand.''

Japan's Nikkei 225 Stock Average climbed 1.1 percent to 15,901.34 and China's CSI 300 Index rose 1.8 percent to a record. The Philippines, which was shut yesterday for a holiday, had its biggest gain since former president Joseph Estrada was ousted from power in January 2001.

Chalco, BHP

The Dow Jones Industrial Average and Europe's Dow Jones Stoxx 600 Index both climbed for a second day yesterday, recovering from a sell-off that began July 23 and erased more than $5.5 trillion of stock-market value worldwide. All 10 industry groups included in MSCI's Asia-Pacific index advanced today, with raw-materials stocks posting the biggest gains.

Aluminum Corp. of China, known as Chalco, surged 7.1 percent to HK$13.30 in Hong Kong trading. The world's second- biggest producer of alumina said net income fell 5.2 percent to 6.4 billion yuan ($843 million), beating the 5.6 billion yuan forecast by analysts in a Bloomberg News survey.

BHP added 1.7 percent to A$35.50, after yesterday jumping 7.6 percent. The two-day, 9.4 percent increase is the biggest since November 2001. The world's biggest mining company is expected to tomorrow report a record half-yearly profit of $7.5 billion, a Bloomberg analyst survey showed.

The U.S. index of leading economic indicators -- a guide to future growth in the world's largest economy -- rebounded 0.4 percent last month, after losing 0.3 percent in June, the Conference Board reported yesterday. The U.S. is Asia's No. 1 export market.

U.S. Demand

Nintendo, Japan's second-largest video-game maker, surged 5.7 percent to 50,200 yen, after gaining 1.7 percent yesterday. The stock slumped 11 percent last week. Hon Hai, Taiwan's biggest electronics exporter, gained 3.6 percent to NT$272.50.

The Fed on Aug. 17 cut its discount rate by half a percentage point to 5.75 percent, a move that many investors took as a signal that a reduction of the more important overnight federal funds rate may follow soon. The yield on three-month U.S. Treasury bills ended yesterday at 3.09 percent, the lowest closing level in two years.

``It was very positive for the Fed to cut the discount loan rate and it doesn't look like the problems will lead to a crisis,'' said Lee Min Koo, who helps manage the equivalent of $1.8 billion at SH Asset Management Co. in Seoul. ``If the instability doesn't go away then further measures will probably be taken.''

Westfield Group, which owns 59 shopping malls in the U.S., climbed 1.7 percent to A$19.49. Techtronic Industries Co., a power tool maker that counts Home Depot Inc. among its customers, gained 2.5 percent to HK$8.65.

`Upward Revaluation'

The Hang Seng Index rose 0.6 percent and the Hang Seng China Enterprises Index, which tracks the Hong Kong-listed shares of 41 mainland companies, gained 2.9 percent. China's government said yesterday it is starting a pilot program that will allow mainland citizens with a Bank of China Ltd. account in the city of Tianjin to invest in Hong Kong stocks.

That raised speculation more of China's 17 trillion yuan ($2.2 trillion) in household savings will flow into the market. The Hang Seng is valued at 16 times reported earnings, less than a third of the CSI 300's 51 times. The Hang Seng China Enterprises Index is valued at 22 times.

``This news should produce an upward revaluation of Hong Kong-listed China shares,'' said Jing Ulrich, chairman of China equities at JPMorgan Chase & Co. ``Many will see this as a green light to take advantage of cheaper valuations on offer for Chinese shares listed in Hong Kong.''

China Mobile Ltd., the world's biggest wireless carrier by users, added 0.6 percent to HK$88.40. China Life Insurance Co., the nation's biggest insurer, jumped 3 percent to HK$31.10. The company's Shanghai-listed A shares trade at an equivalent price of HK$50.53, higher than the Hong Kong listing.

Hong Kong Exchanges, which operates Asia's third-biggest stock market, climbed 6.2 percent to HK$123.30 on speculation volume will increase.

Aluminum Corp. of China Ltd. (2600 HK)
BHP Billiton Ltd. (BHP AU)
China Mobile Ltd. (941 HK)
China Life Insurance Co. (2628 HK)
Hong Kong Exchanges & Clearing Ltd. (388 HK)
Hon Hai Precision Industry Co. (2317 TT)
Nintendo Co. (7974 JO)
Techtronic Industries Co. (669 HK)
Westfield Group (WDC AU)

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Kyung Bok Cho in Seoul at kcho7@bloomberg.net

Last Updated: August 21, 2007 06:05 EDT