June 30 (Bloomberg) -- Asian stocks rose, led by Toyota Motor Corp. and Samsung Electronics Co., as the dollar's gain against the region's currencies added to optimism that the value of their U.S. sales will increase.

For exporters, it's ``a free boost to their earnings when the currencies move the right way,'' said Michael Birch, who manages about $80 million at Wallace Funds Management in Sydney.

The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 1,000 stocks, added 0.4 percent to 99.60 at 3:35 p.m. in Tokyo. All 10 of the benchmark's industry groups rose. The index is set for a 1.9 percent gain this month.

Japan's Nikkei 225 Stock Average added 0.1 percent. Stock indexes also gained in Australia, New Zealand, South Korea, Singapore, Taiwan, Malaysia and India. They fell elsewhere.

China's Shenzhen Composite Index dropped 2.4 percent, the region's biggest loser today. China Cosco Holdings Co., the nation's biggest container shipping line, slumped in its first day of trading in Hong Kong on concern excess capacity for sea freight may dent earnings.

Toyota, Asia's biggest automaker, added 1.3 percent to 3,970 yen. The Japanese carmaker derives about 70 percent of operating profit from North America. Its annual operating profit drops about 20 billion yen ($181 million) for every 1 yen the yen gains against the dollar, according to an estimate by Credit Suisse First Boston Japan Inc.

Samsung Electronics, South Korea's largest exporter, rose 0.8 percent to 494,000 won. Exports account for about 40 percent of South Korea's economy.

`Good News'

The dollar yesterday traded as high at 110.64 yen, the strongest since Oct. 15. It was recently at 110.29 yen. South Korea's won today gained 0.4 percent after yesterday losing 0.5 percent to 1,026.30 against the dollar, according to Seoul Money Brokerage Services Ltd. For the quarter, the yen lost 2.8 percent versus the dollar, while the won dropped 1 percent.

``The weaker won is good news for exporters as it may support earnings recovery from the third quarter,'' said Kim Woo Sik, who helps oversee about $300 million at Daehan Investment Trust Management Co. in Seoul. ``The won is expected to weaken further in the second half of the year.''

China Cosco fell 8.8 percent to HK$3.875 in Hong Kong. The Beijing-based company raised HK$9.52 billion ($1.22 billion) in an initial public offering after pricing its shares at the bottom of a targeted range.

Credit Suisse First Boston analysts today started covering the stock with an ``underperform'' recommendation on concern shipping rates will decline. The company's Cosco Pacific Ltd. unit, a member of the Hang Seng Index, fell 1.6 percent to HK$15.20.

`Reached Its Peak'

``The shipping industry may have reached the peak of its cycle,'' said Jacky Choi, who declined to say if he owns Cosco shares among $2.4 billion of Asian stocks he helps manage at Value Partners Ltd. in Hong Kong. China Cosco ``isn't attractive.''

Evergreen Marine Corp., Asia's largest container shipping company, slid 0.9 percent to NT28.20. Neptune Orient Lines Ltd., the second largest, lost 0.5 percent to S$3.72.

The Shanghai Composite Index, which covers both yuan- denominated A shares and foreign-currency B shares, fell 1.9 percent. The Shanghai index is set for an 8.2 percent decline this quarter, while the Shenzhen index is set to fall 12 percent, the worst-performing indexes in the region for the period.

Huaneng Power International Inc. led the largest companies by value lower amid concern shareholders won't approve compensation plans linked to government sales of shares.

Not Pleased

``Generally, investors weren't pleased with the compensation plans and are hoping that the companies will revise their proposals,'' said Zhang Xuejun, who manages about $622 million with Guotai Junan Allianz Fund Management Co. in Shanghai.

Huaneng Power, the listed unit of China's largest power group, fell 5.1 percent to 6.20 yuan. Wuhan Iron & Steel Co., China's second-biggest publicly traded steelmaker by value, slid 4.2 percent to 3.42 yuan.

The Philippine Stock Exchange Composite Index fell 1.1 percent. It lost 1.6 percent in the past three months, its first quarterly drop since the first quarter of 2004.

Philippine Long Distance Telephone Co., the nation's largest phone company, led declines after President Gloria Arroyo's opponents said they plan to hold a protest later today to demand her resignation.

Bayan, a coalition of labor, farm worker, student and women's groups, said it will proceed with the rally because it wasn't satisfied with an apology Arroyo made on the election- fraud issue on June 27 and yesterday's announcement that her husband, who's been accused of involvement in illegal gambling, was leaving the country.

Philippine Long Distance slid 0.9 percent to 1,620 pesos. Ayala Corp., owner of the nation's largest property developer, fell 2.3 percent to 315 pesos.

``The market is worried that the political instability will drag on,'' said Mark Canizares, analyst at Manila-based CitisecOnline.

To contact the reporter for this story: Stuart Kelly in Sydney skelly22@bloomberg.net;

Last Updated: June 30, 2005 02:40 EDT