Jan. 17 (Bloomberg) -- Asian stocks rose, led by technology companies and Japanese property developers, after Merrill Lynch & Co. raised its rating on Samsung Electronics Co. and UBS AG said a drop in real-estate companies was overdone.

Samsung, Asia's largest maker of flat panels, mobile phones and chips, jumped the most in six months. Mitsui Fudosan Co., Japan's second-largest developer by market value, climbed for the first time in five days. Uni-President Enterprises Corp., Taiwan's largest food maker that supplies instant noodles and drinks in China, plunged after the Chinese government imposed curbs on staple foods to control inflation.

``We've seen very heavy selling in the past few days and right now the market's taking a moment to pause,'' said Yuuki Sakurai, who helps manage the equivalent of $54 billion in assets at Fukoku Mutual Life Insurance Co.

The MSCI Asia Pacific Index climbed 1 percent to 146.42 at 7:03 p.m. in Tokyo, halting a two-day, 4.7 percent drop. Japan's Nikkei 225 Stock Average advanced 2.1 percent to 13,783.45, rebounding from the lowest in more than two years.

China's CSI 300 Index tumbled 2.5 percent, paced by China Construction Bank Corp., after the government ordered banks to set aside more money in reserve.

Bank shares climbed elsewhere in Asia, led by National Australia Bank, after JPMorgan Chase & Co. reported a lower- than-estimated writedown and Wells Fargo & Co. posted results that topped analyst estimates.

Samsung, Mitsubishi Estate

Samsung Electronics jumped 5.7 percent to 560,000 won, the biggest gain since July 13. Merrill Lynch raised its rating on the stock to ``buy'' from ``neutral,'' citing higher profit from liquid-crystal displays and handsets.

Sharp Corp., Japan's biggest LCD maker, climbed 4.5 percent to 1,964 yen, the steepest advance since Nov. 26. Goldman, Sachs & Co. increased the stock's rating to ``buy'' from ``hold,'' citing demand for flat panels.

Mitsui Fudosan gained 6.2 percent to 2,130 yen, while Mitsubishi Estate Co., Japan's biggest developer by market value, jumped 7 percent to 2,450 yen.

The Topix Real Estate Index, which tracks 54 developers and property managers, lost 18 percent this year to yesterday, making the index the third-worst performance among the broader Topix's 33 industry groups. It surged 5.7 percent today, the biggest advance.

``The overall real-estate sector is being sold off considerably,'' Toshihiko Okino, an analyst for UBS AG in Tokyo, said in a note to clients dated today. There is ``significant upside for major real-estate firms.''

Signs of Recovery?

Developers also rose after the Nikkei newspaper said that the government's monthly economic report for January will say housing construction is showing signs of recovery. The newspaper didn't say where it got the information.

Uni-President plunged 6.9 percent to NT$42.85 in Taipei. Great Wall Enterprise Co., the No. 2 Taiwanese food company, declined 4.3 percent to NT$37.20. China Mengniu Dairy Co., the nation's biggest producer of liquid milk, tumbled 8.5 percent to HK$22.70, the biggest loss since Nov. 15.

China ordered banks late yesterday to increase their reserves for the 11th time in 13 months to curb inflation in the world's fastest-growing major economy. Banks must put aside 15 percent of deposits, the most in at least 20 years. The government also ordered suppliers of grain, oil, meat and other staples to seek approval for price increases. Inflation soared to 6.9 percent in November.

`Aggressive Steps'

Wilmar, which supplies half of China's edible oil, plunged 7.6 percent to S$4.49 in Singapore.

``China is taking aggressive steps to fight inflation, wounding food and raw material makers that are tied to Chinese demand,'' said Phil Chen, who manages $154 million at Grand Cathay Securities Investment Trust Co. in Taipei.

China Construction Bank fell 2.7 percent to 9.35 yuan, adding to its three-day, 4.8 percent tumble. Industrial & Commercial Bank of China Ltd., the largest bank, slipped 2.5 percent to 7.71 yuan, also sliding for a fourth day.

``Everything's coming together today to hit the market,'' said Chan Kum Kong, who helps manage $15 billion at DBS Asset Management in Singapore. ``First, the reserve hike and then price controls. Then there's last year's rate increases. People figure it'll kick in and in the near term, everyone across the board will be hit.''

Metals, Oil Prices Slide

BHP Billiton Ltd., the world's biggest mining company and Australia's largest oil producer, dropped 2.7 percent to A$36.50, the lowest close since Aug. 22, on concern a slowdown in China will damp demand for raw materials.

Rio Tinto Group, the world's third-largest mining company, slipped 3.6 percent to A$118.60. Cnooc Ltd., China's biggest offshore oil producer, lost 0.2 percent to HK$12.16.

A measure of six metals traded on the London Metal Exchange, including copper and zinc, slid 1.6 percent yesterday, adding to a 3 percent drop on Jan. 15. Crude oil for February delivery fell 1.2 percent yesterday to $90.84 a barrel in New York, the lowest close since Dec. 9. Futures slipped to as low as $89.26.

National Australia, the country's largest bank, gained 1.8 percent to A$35.37. Mizuho Financial Group Inc., Japan's third- biggest publicly traded bank, rose 5.2 percent to 483,000 yen.

JPMorgan, which surpassed Citigroup Inc. as the second- biggest U.S. bank by market value, reported a better-than- expected writedown of $1.3 billion yesterday.

Wells Fargo, the largest bank on the U.S. West Coast, reported fourth-quarter profit that beat estimates.

``In a bear market things tend to get oversold,'' said Jason Teh, who helps manage the equivalent of about $5.3 billion at Investors Mutual in Sydney. ``Stocks like the banks are just being priced back to fair value.''

To contact the reporter on this story: Chen Shiyin in Tokyo at schen37@bloomberg.net; George Hsu in Taipei at georgehsu@bloomberg.net

Last Updated: January 17, 2008 05:04 EST