Aug. 13 (Bloomberg) -- Asian stocks rose, following their biggest drop in five months, as the region's central banks moved to ease a credit crunch sparked by losses on higher risk mortgages.

Kookmin Bank and National Australia Bank Ltd., the two nations' biggest lenders, rose after countries including South Korea said they are prepared to add cash into their financial systems if required.

``I don't think the risk aversion will feed on itself,'' said Leo Krippner, head of investment strategy at AMP Capital Investors (NZ) Ltd., which manages $7.3 billion in assets. ``Central banks have shown they are prepared to step in. For us, the global economy is still rolling along OK.''

BHP Billiton Ltd., the world's largest mining company, advanced after it announced plans to explore for natural liquefied gas with Exxon Mobil Corp. Taiwan Semiconductor Manufacturing Co., the world's biggest supplier of made-to-order chips, and Hon Hai Precision Industry Co. climbed after reporting higher July sales.

The Morgan Stanley Capital International Asia-Pacific Index added 0.3 percent to 149.61 at 7:51 p.m. in Tokyo. The benchmark dropped 3 percent on Aug. 10, the most since March 5, to close at its lowest in more than two months.

Japan's Nikkei 225 Stock Average advanced 0.2 percent to 16,800.05. It earlier fell as much as 0.2 percent after a government report showed the economy expanded at a slower pace last quarter.

China's CSI 300 Index fell 0.1 percent. Kweichow Moutai Co. dropped on concern costs will rise after a government report showed inflation accelerated. Australia's S&P/ASX Index added 1.3 percent, the region's biggest gain. Thailand's market was close today for a holiday.

Cash Support

In the U.S., Standard & Poor's 500 futures today rose 0.7 percent. The S&P's 500 Index was little changed on Aug. 10 while the Dow Jones Industrial Average fell 0.2 percent. Europe's Dow Jones Stoxx 600 Index dropped 3.1 percent, the steepest loss since May 2003.

Losses tied to higher-risk mortgages sparked a global equities sell-off that's erased more than $3.3 trillion of market value globally. Central banks in South Korea, the Philippines, Singapore, Indonesia, India, and Malaysia have said they were prepared to add cash into their financial systems.

The Bank of Japan injected 600 billion yen ($5.1 billion) into its system today after adding 1 trillion yen on Aug. 10. Central banks in the U.S., Europe, Japan, Australia and Canada added about $136 billion to the banking system last week, aimed at preventing overnight interest rates from surging and ensuring banks have access to funding

`Steadied the Market'

Kookmin Bank added 3.5 percent to 74,500 won. Korea Exchange Bank, controlled by U.S. buyout firm Lone Star Funds, climbed 4.6 percent to 13,600 won. National Australia rose 2.6 percent to A$39.23. ICICI Bank Ltd., India's second-biggest lender, climbed 1.1 percent to 875.15 rupees.

``Providing liquidity is reassuring to the market because it indicates the Fed will be proactive regarding potential issues in credit market volatility,'' said Atul Lele, who helps manage $380 million at White Funds Management in Sydney. It has ``steadied the market and given some investors confidence.''

Exporters climbed amid speculation the central banks' support would help sustain global economic growth.

South Korea's Samsung Electronics Co., Asia's No. 1 maker of computer chips and mobile phones, gained 1.7 percent to 613,000 won. Posco, its second-biggest company by value, rose 3.9 percent to 509,000 won. Japan's Nintendo Co., the world's third-biggest maker of video-game players, gained 2.9 percent to 53,300 yen.

``If there are signs of a credit crunch, we'll immediately provide liquidity,'' South Korea's Vice Finance Minister Kim Seok Dong told reporters in Seoul today. The government is ``determined and capable'' of handling any situation after experiencing the 1997-98 Asian financial crisis, he said.

Japan GDP

Shares of stocks tied to the Japanese economy fell after a worse-than-estimated gross domestic product report. Sumitomo Mitsui Financial Group Inc., the country's third-largest bank by assets, fell 1.2 percent to 988,000 yen. Mitsui Fudosan Co., its biggest property developer, slid 2.2 percent to 3,110 yen.

Japan's economy expanded at a 0.5 percent annualized rate in the three months ended June 30 from 3.3 percent in the first quarter, the Cabinet Office said in Tokyo today. Economists surveyed by Bloomberg News expected expansion of 0.9 percent.

The report is the last main economic indicator before the central bank's Aug. 22-23 meeting to decide whether to raise the key overnight lending rate from 0.5 percent, the lowest among major economies. Investors pared bets of a rate increase last week on concern a widening credit crunch will hurt global economic growth.

BHP, China Inflation

BHP Billiton advanced 1.4 percent to A$35.14 after it announced plans to explore for natural liquefied gas off southwest Australia with Exxon Mobil Corp., the world's biggest publicly traded oil company.

Taiwan Semiconductor gained 0.8 percent to NT$62. The company said July sales increased 4.3 percent to NT$28.8 billion ($874 million). Hon Hai advanced 1.1 percent to NT$271.50 The company said sales in July climbed 40 percent from a year earlier to NT$96.6 billion.

Taiwan's stocks also gained after its central bank said local markets are ``comparatively stable'' and that there is no shortage of liquidity, reflecting confidence fallout from subprime mortgage losses can be contained without its help.

In China, Kweichow Moutai, the maker of Moutai, the fiery liquor used at official Chinese banquets, declined 2.6 percent to 136.39 yuan. Luzhou Laojiao Co., a spirits producer in southwest province of Sichuan, fell 2.7 percent to 54.51 yuan.

The stocks fell on speculation raw-material prices will increase after China's National Bureau of Statistics said consumer prices rose 5.6 percent in July from a year earlier, its highest level in 10 years. Food costs boosted the consumer prices figure higher than the 4.6 percent median estimate of economists in a Bloomberg survey.

Coal, SingTel

PT Bumi Resources, Indonesia's biggest coal exporter, advanced 2.9 percent to 2,625 rupiah. Coal for immediate delivery at Australia's Newcastle port increased 3.3 percent to $72.37 a metric ton in the week ended Aug. 10, according to the globalCOAL NEWC Index. That's above the previous record of $70.88 reached in June and the third consecutive weekly rise.

``We expect the Indonesian coal industry to be a big winner of the strengthening regional coal price outlook,'' wrote Credit Suisse Group's Jakarta-based analyst Haider Ali in a note today.

China Mobile Ltd., the world's largest mobile-phone operator by users, gained 1.1 percent to HK$85.60 in Hong Kong. Morgan Stanley raised its price estimate for the stocks to HK$100 from HK$81.50 on expectations first-half earnings will increase.

Singapore Telecommunications Ltd., Southeast Asia's largest phone company, added 1.2 percent to S$3.50. The company gained 12.6 million users last quarter, raising the total to 136.4 million, its fifth straight quarterly increase.

UBS AG raised its 12-month share-price estimate for SingTel to S$4.25 from S$3.40, citing its India and Indonesia units.

BHP Billiton Ltd. (BHP AU)
PT Bumi Resources (BUMI IJ)
China Mobile Ltd. (941 HK)
Kookmin Bank (060000 KS)
Kweichow Moutai Co. (600519 CH)
ICICI Bank Ltd. (ICICIBC IN)
Luzhou Laojiao Co. (000568 CH)
Mitsui Fudosan Co. (8801 JT)
National Australia Bank Ltd. (NAB AU)
Nintendo Co. (7974 JT)
Posco (005490 KS)
Samsung Electronics Co. (005930 KS)
Singapore Telecommunications Ltd. (ST SP)
Sumitomo Mitsui Financial Group Inc. (8316 JT)
Taiwan Semiconductor Manufacturing Co. (2330 TT)
Hon Hai Precision Industry Co. (2317 TT)

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net.

Last Updated: August 13, 2007 06:54 EDT