July 25 (Bloomberg) -- Asian energy stocks rose, led by Inpex Corp. and Woodside Petroleum Co., after oil prices climbed on expectations a stronger yuan will encourage China to increase fuel imports.

``Energy stocks really stand out in terms of performance and it's hard to see that ending anytime soon because demand from China is so strong,'' said Taiji Yoshida, who helps manage $6.1 billion at Yasuda Asset Management Co. in Tokyo.

Japan's Nikkei 225 Stock Average rose 0.6 percent to 11,762.65 at the 3 p.m. close in Tokyo. The Kospi index in South Korea rose 1.4 percent to close at its highest in more than a decade after the won fell against the dollar.

An index tracking the performance of energy stocks in the Morgan Stanley Capital International Asia-Pacific Index rose 0.8 percent, the biggest advance among the 10 industry groups that make up the regional benchmark.

The MSCI Asia-Pacific Index, which tracks more than 1,000 stocks in U.S. dollars, slid 0.5 percent to 100.96 as the dollar strengthened against regional currencies for a second day. All other benchmarks in the region rose except in China and Singapore. Malaysia, Indonesia and Hong Kong were little changed. The Philippine market is closed today for a holiday.

In the U.S., the Standard & Poor's 500 Index had its longest streak of weekly gains since September after energy companies such as Schlumberger Ltd. and Halliburton Co. reported better-than- expected earnings as oil prices jumped.

Crude oil for September delivery rose as much as 0.4 percent to $58.89 a barrel on the New York Mercantile Exchange in after- hours trading. The contract jumped 2.7 percent to $58.65 on July 22. Oil prices today are 41 percent higher than a year ago.

`Boost'

China on July 21 dismantled the yuan's peg of about 8.3 per dollar and said it will allow the yuan to fluctuate against a basket of currencies. The yuan appreciated 2.1 percent to 8.11 per dollar on that day, making it cheaper for refiners including China Petroleum & Chemical Corp. to buy fuel.

Inpex, Japan's biggest oil explorer, rose 2.1 percent to 693,000 yen. Woodside Petroleum, Australia's second-biggest oil producer, added 2.2 percent to A$30.55.

``Higher oil prices will benefit energy-related companies and provide a boost for their shares,'' said Yutaka Miura, a manager at Shinko Securities Co. in Tokyo.

BHP Billiton, the world's biggest miner, gained 0.7 percent to A$19.22. The company gets about a fifth of its earnings from crude oil. Singapore Petroleum Co., one of the city's two publicly traded oil- and gas-explorers, rose 1.2 percent to S$4.92. PetroChina Co., the nation's largest oil company, added 1.6 percent to HK$6.55.

PTT Pcl, Thailand's biggest energy company, rose 1.9 percent to 220 baht. Its unit PTT Exploration & Production Pcl, the second- largest natural gas producer, whose rates are tied to the price of oil, added 2 percent to 400 baht. Both stocks accounted for 26 percent of the SET Index's gain.

Exporters

``Clearly PTT Exploration directly benefits from oil prices,'' said Lance Depew, who helps manage about $240 million at Quest Capital Ltd. in Bangkok. ``Its stock has moved in sympathy with oil prices.''

Exporters in South Korea rose after the won weakened against the dollar on speculation the central bank will seek to stem the currency's gain to protect overseas earnings. A weaker won increases the value of earnings abroad when converted back into the local currency.

``Sentiment for exporters is positive on optimism their earnings will improve in the second half,'' said Lee Seung Jun, who helps oversee the equivalent of $600 million at CJ Asset Management Co. in Seoul.

Hyundai Motor Co., the nation's largest automaker, rose 0.9 percent to 66,000 won. Three out of every four cars Hyundai made in 2004 were sold outside South Korea. Samsung Electronics Co., South Korea's largest exporter, gained 0.5 percent to 555,000 won.

The won lost 0.1 percent to 1022.70 against the dollar at 3 p.m. in Seoul after earlier falling as much as 0.4 percent, according to Seoul Money Brokerage Services Ltd.

Hynix, Chang Hwa

Hynix Semiconductor Inc., the world's second-largest maker of computer-memory chips last year, surged 10 percent to 22,700 won after Good Morning Shinhan Securities Co. raised its six-month share-price estimate on the company to 28,600 won from 16,500 won, citing a recovery in memory-chip prices.

In Taiwan, Chang Hwa Commercial Bank advanced after Taishin Financial Holdings Co. said it will buy a stake to get management control of the lender.

Chang Hwa, a state-controlled lender, jumped by the 7 percent daily limit to NT$19.90. Taishin on July 22 agreed to pay NT$36.6 billion ($1.2 billion) for management control of Chang Hwa, creating the second-largest banking group in Taiwan in terms of assets. Taishin dropped 4 percent to NT$26.55.

Oil & Natural Gas Corp., India's largest oil explorer, gained 2.6 percent to 959.65 rupees after the Press Trust of India reported, citing a statement from the prime minister's office, that the government approved a 210 billion rupee ($4.8 billion) investment by the company on new projects. India's Sensitive index rose 1.1 percent.

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

Last Updated: July 25, 2005 03:49 EDT