Sept. 20 (Bloomberg) -- Asian stocks rose to a seven-week high as a jump in metals prices and crude oil trading near a record boosted the value of commodity producers.

BHP Billiton Ltd., the world's largest mining company, advanced to a high and Nippon Steel Corp. climbed after a bigger- than-expected interest-rate cut in the U.S. buoyed demand for metals. Mitsui Fudosan Co., Japan's biggest property developer by sales, gained after the government said commercial land prices rose nationwide for the first time in 16 years.

``Steelmakers benefit from growth in emerging markets including China and India,'' said Kiyoshi Ishigane, who helps oversee $61 billion in assets at Mitsubishi UFJ Asset Management Co. in Tokyo. ``Commodity stocks are on a rising trend.''

The Morgan Stanley Capital International Asia Pacific Index added 0.6 percent to 155.61 at 11.15 a.m. in Tokyo. The measure is set to close at its highest since July 31, with materials producers posting the biggest gain among 10 industry groups. Other markets open for trading advanced except in Singapore.

U.S. stocks yesterday extended their biggest rally in four years, buoyed by speculation Federal Reserve interest-rate cuts will help contain a housing slump and spur profit growth. The Standard & Poor's 500 Index rose 0.6 percent.

BHP, Woodside

BHP gained 1.3 percent to A$40.96. Nippon Steel Corp., Japan's largest maker of the alloy, gained 1.8 percent to 808 yen. Nippon Mining Holdings Inc., its biggest copper producer, gained 0.9 percent to 1,127 yen. Woodside Petroleum Ltd., Australia's second-largest oil company, added 1.3 percent to A$47.98.

A measure of six metals traded on the London Metal Exchange, jumped 4.6 percent yesterday, the most since Jan. 10. Copper added 4 percent and nickel surged 9.9 percent, its biggest gain in three years. Zinc added 5.1 percent, the most in five months.

The Fed on Sept. 18 lowered its benchmark rate by half a percentage point, more than forecast by most economists in a Bloomberg News survey, to 4.75 percent.

Mitsui Fudosan Co. added 1.4 percent to 2,855 yen. K.K. DaVinci Advisors, which runs the nation's biggest real-estate investment fund, gained 0.7 percent to 72,100 yen.

Japan's commercial land prices gained 1 percent overall, the first increase since 1991, while the decline in nationwide residential land prices narrowed to 0.7 percent from 2.3 percent, the Ministry of Land, Infrastructure and Transport said yesterday after the market closed.

``With the concern of a credit crisis receding, bank and real-estate stocks will rally,'' said Mitsushige Akino, who oversees $468 million at Ichiyoshi Investment Management Co. in Tokyo.

To contact the reporter on this story: Darren Boey in Hong Kong at dboey@bloomberg.net

Last Updated: September 19, 2007 22:19 EDT