June 17 (Bloomberg) -- Asian stocks gained for a third day, as higher metals prices and a decline in crude oil boosted the earnings prospects for mining companies and utilities.

BHP Billiton Ltd., the world's largest mining company, rose to a two-week high in Sydney. Tokyo Electric Power Co. led power producers higher as oil dropped from a record, easing concerns higher fuel costs will hurt profit. Sumitomo Mitsui Financial Group Inc., Japan's second-biggest bank by market value, climbed as Lehman Brothers Holdings Inc.'s chief executive officer declared ``confidence'' in the value of its mortgage assets.

``The market is focusing on bank earnings at the moment to gauge how large writedowns are going to be this time around,'' said Naoteru Teraoka, who helps oversee $21 billion at Chuo Mitsui Asset Management Co. in Tokyo. ``The good bet for the long term remains commodity shares.''

The MSCI Asia Pacific Index added 0.4 percent to 143.53 as of 7:19 p.m. in Tokyo, with utilities and materials producers accounting for 36 percent of the gain. Japan's Nikkei 225 Stock Average closed little changed at 14,348.37. Benchmarks declined in half of Asia's markets. China's CSI 300 Index dropped for a 10th day, down by more than 50 percent from its October peak.

Steelmakers fell after Mizuho Securities Co. lowered its ratings on JFE Holdings Inc. and Kobe Steel Ltd., and UBS AG warned strikes could affect South Korean companies.

MSCI's Asian index has fallen 9 percent this year as financial companies worldwide declared $392 billion of writedowns and losses tied to mortgage investments in the U.S. Most U.S. stocks rose yesterday as second-quarter results from Lehman boosted financial shares. Standard & Poor's 500 Index futures recently added 0.4 percent.

Power Producers

BHP climbed 3 percent to A$44.93, the highest since June 2. Newcrest Mining Ltd., Australia's largest gold producer, gained 6.6 percent to A$28. The two companies were the biggest contributors to the MSCI Asia Pacific Index's advance today.

A measure of six metals traded on the London Metal Exchange, including copper and zinc, added 1.2 percent yesterday, the steepest climb in more than a week.

Tokyo Electric, Asia's biggest power producer, advanced 1 percent to 2,605 yen. Every $1 drop in the price of crude oil lifts the company's yearly operating profit by about $150 million. AGL Energy Ltd., Australia's biggest electricity and gas retailer, climbed 2.6 percent to A$14.37.

Crude oil in New York fell to as low as $133.11 a barrel in after-hours trading, dropping from yesterday's intraday record of $139.89, after Saudi Arabia said it will boost production.

`Support And Liquidity'

Sumitomo Mitsui added 1.1 percent to 925,000 yen. National Australia Bank Ltd., Australia's largest by assets, rose 1.5 percent to A$27.97. ICICI Bank Ltd., India's largest non-state lender, jumped 2.7 percent to 819.3 rupees.

Lehman CEO Richard Fuld said the fourth-largest U.S. securities firm had fairly gauged the market value of its mortgage assets. The company this month raised $6 billion to help survive the U.S. mortgage collapse.

``There's a lot of support and liquidity available'' for banks, said Raymond Tang, who oversees $5.4 billion as chief investment officer at CIMB-Principal Asset Management Bhd. in Kuala Lumpur.

In Australia, Babcock & Brown Ltd., the country's second- biggest investment firm, surged 13 percent to A$5.93, as executives held talks with bankers to stave off a debt review. Allco Finance Group Ltd., facing a June 30 debt deadline, soared 86 percent to 54 Australian cents after saying it will raise A$165 million ($156 million) from selling a wind-power project to reduce borrowings.

China Slumps

JFE, the world's third-biggest steelmaker by output, dropped 1 percent to 5,760 yen. Kobe Steel Ltd., the fourth-largest in Japan, slumped 2.7 percent to 327 yen. Hiroshi Matsuda, a Mizuho analyst, cut both stocks to ``hold'' from ``buy.''

South Korean steelmakers and builders slumped after UBS said a strike by the transport and construction-equipment unions may squeeze builders' margins as projects are delayed.

Hyundai Steel Co., South Korea's second-largest maker of the alloy, lost 1.1 percent to 78,100 won, the lowest since April 29. Hyundai Development Co. fell 5.6 percent to 52,000 won.

China's CSI 300 Index tumbled 3.7 percent amid concern government measures to curb inflation will hurt earnings. Citic Securities Co., China's biggest publicly traded stockbroker, plunged 7 percent to 24.76 yuan. China Vanke Co., its largest listed property developer, dropped 6.1 percent to 9.95 yuan.

``Concerns about the economic fundamentals have escalated into a complete loss of confidence in the stock market now,'' said Fan Dizhao, a Shanghai-based analyst at Guotai Asset Management Co., which oversees the equivalent of $7 billion.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: June 17, 2008 06:23 EDT