Nov. 1 (Bloomberg) -- Asian stocks rose after the Federal Reserve cut interest rates and U.S. economic growth accelerated, bolstering confidence in the region's biggest export market.

Canon Inc., which made 31 percent of its revenue in North America last year, climbed the most in two months after the Fed said economic growth was solid. China Petroleum & Chemical Corp. jumped after the Chinese government raised the cost of fuel to help refiners cover record oil prices that have touched $96 a barrel. BHP Billiton Ltd. led oil producers higher.

``The Fed didn't give signs of a further slowdown and that's given investors the confidence to take risks again,'' said Thue Isen, who manages $1 billion at Bankinvest Group in Singapore. ``Energy producers are reacting to the rise in oil prices, which could stay high for significantly longer than expected.''

Neptune Orient Lines Ltd., Singapore's biggest container shipping company, surged on higher profit. Bank of China Ltd. climbed after Goldman, Sachs & Co. raised its rating on the stock.

The Morgan Stanley Capital International Asia-Pacific Index added 0.5 percent to 172.12 as of 6:16 p.m. in Tokyo, set for a record. The Nikkei 225 Stock Average advanced 0.8 percent to 16,870.40. Australia's S&P/ASX 200 Index rose to a high. Benchmarks also climbed in Hong Kong, Indonesia, India and Sri Lanka. The Philippines' market was closed for a holiday.

U.S. stocks advanced yesterday, led by Microsoft Corp., the world's biggest software maker, and Exxon Mobil Corp., the largest energy company, on prospects consumers will keep spending.

Faster Pace

Canon added 3.7 percent to 5,960 yen, its biggest jump since Aug. 24. Toyota Motor Corp., the world's largest automaker by value, advanced 2.7 percent to 6,750 yen. Li & Fung Ltd., which sells goods to Wal-Mart Stores Inc., climbed 7.8 percent to close at a record HK$39.25.

The Fed lowered its benchmark rate by a quarter percentage point to 4.5 percent to help the U.S. economy withstand the fallout from August's credit collapse, the Federal Open Market Committee said yesterday after meeting in Washington.

The Commerce Department said economic growth accelerated to an annual pace of 3.9 percent in the third quarter, the fastest in more than a year.

``There's been a variety of concerns about the U.S., but as the GDP figure showed, the economy isn't heading south,'' said Shuichi Hida, who helps look after $850 million at Plaza Asset Management Co. in Tokyo.

Sinopec, BHP

Sinopec, as China Petroleum is known, climbed 9.4 percent to HK$12.76 in Hong Kong, its biggest jump since Oct. 15. China unexpectedly increased fuel prices by as much as 10 percent in an ``urgent step'' to help the nation's oil refiners cover surging costs. To ``guarantee domestic refined oil supply and promote energy conservation,'' gasoline, diesel and jet fuel prices will rise 500 yuan ($67) a metric ton starting today, the National Development and Reform Commission said late yesterday.

BHP, Australia's largest oil producer, gained 1.7 percent to A$46.90. Woodside Petroleum Ltd., Australia's second-biggest oil producer, rose 0.5 percent to A$52.24. PetroChina Co., the nation's No. 1 oil producer, added 2.6 percent to HK$19.90 in Hong Kong, the highest close since its debut in April 2000.

Crude oil futures climbed as much as 1.8 percent to $96.24 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983, extending yesterday's 4.6 percent jump. The contract was recently at $95.55.

Neptune, LG.Philips

Neptune Orient rose 3.9 percent to S$5.30, its biggest gain since Oct. 16. Third-quarter profit surged 50 percent after it raised rates and carried more Asian-made goods to the Americas and Europe.

Bank of China, a Beijing-based lender, climbed 2.6 percent to close at a record HK$5.19 after Goldman lifted its rating on the stock to ``buy'' from ``neutral,'' citing earnings that beat analyst estimates. The Chinese lender on Oct. 30 reported a 22 percent increase in third-quarter profit.

LG.Philips LCD Co., the world's second-largest maker of liquid-crystal displays, gained 3.4 percent to 50,900. JPMorgan Chase & Co. lifted its price estimate by 17 percent to 70,000 won in a report. The company will benefit from demand from China in the first half of 2008, especially before the Olympics, the brokerage said.

United Microelectronics Corp., the world's second-largest custom-chip maker, fell 4 percent to NT$20.40 in Taiwan. The company said yesterday that profitability and shipments will drop in the current quarter on weaker demand for computer chips.

``This revenue volatility revives concerns over sustainability of the company's operating performance,'' Steven Pelayo, an analyst at HSBC Holdings Plc in Hong Kong, wrote in a report today. He lowered his price estimate on the stock to NT$22.50 from NT$25.10 and maintained his ``neutral'' rating.

Mitsubishi UFJ Financial Group Inc. dropped 1.8 percent to 1,119 yen. Japan's largest bank by market value yesterday posted its biggest profit decline on losses at a credit card unit and lower margins on loans to corporate clients.

Bank of China Ltd. (3988 HK)
BHP Billiton Ltd. (BHP AU)
Canon Inc. (7751 JT)
China Petroleum & Chemical Corp. (386 HK)
LG.Philips LCD Co. (034220 KS)
Li & Fung Ltd. (494 HK)
Mitsubishi UFJ Financial Group Inc. (8306 JT)
Neptune Orient Lines Ltd. (NOL SP)
PetroChina Co. (857 HK)
Toyota Motor Corp. (7203 JT)
United Microelectronics Corp. (2303 TT)
Woodside Petroleum Ltd. (WPL AU)

To contact the reporter on this story: Hanny Wan in Hong Kong at hwan3@bloomberg.net.

Last Updated: November 1, 2007 05:18 EDT