Nov. 4 (Bloomberg) -- Asian stocks rose after U.S. President George W. Bush won a second term, boosting optimism that the world's largest economy will sustain its growth. Exporters such as Toyota Motor Corp. and miners including Rio Tinto Group gained.

``Bush's policies, such as reducing taxes and increasing government spending, are perceived to be good for global growth,'' said Hans Kunnen, who helps manage the equivalent of $14.4 billion at Colonial First State Investments in Sydney. ``Anything that's good for the world's biggest economy ultimately feeds through to our own stocks.''

Morgan Stanley Capital International's Asia-Pacific Index, which tracks about 900 companies, rose 0.3 percent to 93.31, set for its highest close since April 28, at 3:05 p.m. in Tokyo. All but two of the 10 industry groups that make up the index climbed.

Japan's benchmarks were the region's best performers after they resumed trading from yesterday's holiday. The Nikkei 225 Stock Average rose 0.5 percent and the Topix index added 0.6 percent.

Shares rose on optimism Bush's tax cuts will encourage consumer spending, stoking demand for Asian-made goods including flat-screen televisions, digital cameras and cars. In his first term, Bush cut the top personal income-tax rate and won approval to lower the dividend-tax rate for the highest bracket.

The Kospi index lost 1.1 percent in South Korea, which imports most of its oil. Oil prices advanced on concern Bush plans to add at least 57 million barrels to the U.S. emergency stockpile, which will reduce supplies for commercial use.

`Strength'

Australia's stock index rose for an eighth day, the longest winning stretch in more than a year. Stock benchmarks rose in Singapore, India and New Zealand, and fell elsewhere. Hong Kong's Hang Seng Index was little changed.

Toyota, the world's biggest automaker by market value, added 1.7 percent to 4,110 yen. Honda Motor Co., Japan's No. 3 carmaker, rose 0.6 percent to 5,210 yen. Nissan Motor Co., which gets as much as 80 percent of its operating profit from North America, climbed 0.4 percent to 1,155 yen.

Shares of Japan's three largest automakers also jumped after they helped lead Asian car companies to a record 35.9 percent market share in the U.S. last month, according to Bloomberg data.

``Japanese automakers have been able to show their strength in the U.S.,'' said Yutaka Miura, an equity manager at Shinko Securities Co. in Tokyo. ``Their performance has been commendable. Now the big question is whether they'd be able to sustain the same levels of growth going forward.''

Economic Policies

Sony Corp., the world's second-biggest consumer electronics maker, climbed 1.4 percent to 3,720 yen. The company relies on the U.S. for more than a quarter of its sales. Canon Inc., the world's second-biggest seller of digital cameras, added 1.3 percent to 5,310 yen.

Bush received at least 274 electoral votes, four more than needed for victory. He's presided over an economy that expanded at a 3.9 percent annual rate in the first three quarters of this year after growing 3.1 percent last year and 2.2 percent in 2002. The unemployment rate dropped to 5.4 percent in September from a nine-year high of 6.3 percent in June 2003.

Australian resources stocks such as Rio Tinto and BlueScope Steel Ltd. advanced. Chris Pidcock, an analyst at Goldman Sachs JBWere in Melbourne, said the continuity of Bush's economic policies will be beneficial to miners.

Rio Tinto, the world's third-biggest miner, gained 1.4 percent to A$37.42. BlueScope, Australia's biggest steelmaker, jumped 3.5 percent to A$8.01.

Deficit

The Nikkei pared a gain of as much as 1.1 percent and Australia's S&P/ASX 200 Index trimmed an advance of 0.6 percent

Investors including Masayuki Kubota at Daiwa SB Investments Ltd. in Tokyo said the gains may not last on concern that Bush's policies will lead to widening U.S. budget deficits and increasing fuel costs.

The U.S. budget deficit widened to a record $412.6 billion in the fiscal year ended Sept. 30 as tax cuts and fighting in Iraq contributed to the third annual shortfall under Bush.

``There is still a problem with the U.S. budget deficit and there will be very little room for any further economic policies,'' said Kubota, who helps manage the equivalent of $9.1 billion in Japanese equities at Daiwa SB Investments in Tokyo.

South Korea's Kospi fell for the first day in six on concern oil prices will dent growth in Asia's fourth-largest economy.

Crude oil for December delivery rose 2.5 percent to $50.88 a barrel in New York yesterday, the biggest gain since Oct. 20. It recently fell 0.7 percent to $50.53 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

Higher Oil Prices

Samsung Electronics Co., the nation's biggest exporter, fell 1.2 percent to 449,500 won. Korea Electric Power Corp., the utility that spends more than a quarter of its fuel budget on oil to generate electricity, shed 0.7 percent to 23,050 won.

``Bush's re-election means higher crude oil prices and a weaker dollar, which is not good for South Korea, which depends on imports for almost all of its crude needs,'' said Huh Jae Hwan, a market strategist at Tong Yang Investment Bank Co. in Seoul.

Asian airlines fell. Jet fuel, a product of crude oil, accounts for about a fifth of some carriers' expenses.

Korean Air Lines Co., South Korea's largest airline, slid 3.4 percent to 16,950 won. The country's transport ministry said two days ago that Korean Air will halt international flights to five cities, amid rising fuel costs.

Cathay Pacific Airways Ltd., Asia's sixth-biggest airline by sales, lost 1.1 percent to HK$13.45 in Hong Kong. A 1-cent increase in the price of aviation fuel adds HK$60 million ($7.7 million) to costs.

Among the region's best performers, Japan's Fast Retailing Co., the operator of the Uniqlo casual clothing store chain, jumped 6.6 percent to 7,290 yen. The company said same-store sales rose 15 percent in October from a year ago, the first gain in three months.

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net.

Last Updated: November 4, 2004 01:23 EST