Aug. 3 (Bloomberg) -- Australian miners rose, led by Rio Tinto Group, after U.S. government reports raised optimism the world's largest economy will continue to grow, and on expectations Rio will today report an increase in profit.

Multiplex Group and GPT Group dropped after Citigroup Inc. cut both property companies to ``hold'' from ``buy'' after recent share price gains.

The S&P/ASX 200 Index gained 6.3, or 0.2 percent, to 4391.90 as of 11:35 a.m. in Sydney. About nine stocks fell for every eight that rose. The benchmark is headed for a record close.

New Zealand's NZSX 50 Index fell 0.2 percent to 3351.13 as of 1:06 p.m. in Wellington. Scott Technology Ltd., which exports automated machinery for the appliance industry, dropped.

Rio Tinto, the world's third-biggest miner, added 61 cents, or 1.2 percent, to A$49.78, a record. Its shares have climbed 27 percent this year, compared with a gain of 8.6 percent for the S&P/ASX 200. BHP Billiton, the world's biggest miner, gained 35 cents, or 1.8 percent, to A$19.65, an all-time-high.

Rio may today say first-half profit rose 73 percent from a year earlier to a record $1.99 billion as it increased iron ore, diamond and alumina production amid a surge in commodity prices.

Personal incomes in the U.S. rose 0.5 percent in June after a 0.2 increase the previous month, the Commerce Department said. Factory orders climbed for a fourth month in June, expanding 1 percent. Personal spending jumped 0.8 percent following no change in May. The reports helped the Standard & Poor's 500 Index reach its highest level in four years overnight. The S&P 500 added 8.77, or 0.7 percent, to 1244.12.

Multiplex, the Australian construction company rebuilding London's Wembley stadium, dropped 7 cents, or 2.1 percent, to A$3.22. The stock was cut by Citigroup after the shares rallied 12 percent since July 22.

GPT, a real estate investment trust, lost 6 cents, or 1.5 percent, to A$3.84. The shares have gained 3.5 percent since July 26.

The S&P/ASX 200 Index's futures contract for September dropped 0.1 percent to 4367. The broader All Ordinaries Index gained 1.2 point to 4344.6.

The following shares also rose or fell. The stock symbols are in brackets after the company names.

Australian stocks:

Crane Group Ltd. (CRG AU), which sells plumbing supplies, surged 71 cents, or 8.2 percent, to A$9.37. The company said full- year profit rose 9.8 percent to A$39.4 million ($30 million) on improved earnings from its Tradelink and Iplex businesses.

DKN Financial Group (DKN AU), a financial services provider, surged 7 cents, or 10 percent, to 77 cents. The company said it has achieved its target of A$2 billion funds under administration, following a 29 percent increase over the past year.

Energy Developments Ltd. (ENE AU), which generates power from landfills and natural gas, rose 14 cents, or 3.2 percent, to A$4.59. Its shares were raised to ``buy'' from ``neutral'' by Alex Unsworth, an analyst at UBS AG, who cited progress at its West Kimberley and German Creek projects.

Qantas Airways Ltd. (QAN AU), rose 3 cents, or 0.9 percent, to A$3.30. Qantas's low-fare Jetstar unit will begin flights between Australia and New Zealand on Dec. 1 to target tourist travelers, Sydney-based Qantas said in a statement. The discount service will increase competition for government-controlled Air New Zealand Ltd. (AIR NZ).

News Corp. (NWS AU), the world's fifth-biggest mining company, dropped 10 cents, or 0.4 percent, to A$22.66. Rupert Murdoch's adult children don't want him to give his youngest heirs an active role in the trust that controls his $6.1 billion interest in News Corp., the New York Times reported, citing people close to the family. Tensions over the trust were a factor in eldest son Lachlan's decision to resign from the world's fifth- biggest media company last week, the newspaper said.

Oxiana Ltd. (OXR AU), the second-largest Australian gold producer by market value, rose 3 cents, or 2.9 percent, to A$1.06. The company said it hasn't received any takeover approaches from Xstrata Plc or other companies. The shares surged 4.6 percent yesterday as the Australian Associated Press said Switzerland- based Xstrata may make a bid, citing an unidentified analyst.

Realestate.com.au Ltd. (REA AU), an online property agency, rose 18 cents, or 8.5 percent, to A$2.29, after surging 22 percent yesterday. News Corp's Australian business Monday offered to buy the 56.3 percent of realestate.com.au that it doesn't already own for A$2 cash per share.

Vulcan Resources Ltd. (VCN AU), a gold and base metals explorer, surged 7 cents, or 19 percent, to 44 cents. The company announced a ``significant increase'' in the global resource estimate for its 100 percent owned Kylylahti copper project in eastern Finland.

New Zealand stocks:

42 Below Ltd. (FTB NZ), which makes ``42 Below'' vodka, rose 5 cents, or 7.1 percent, to 75 cents, its highest in more than four months. The stock surged 11 percent yesterday after the company said New York-based distributor Eber Brothers agreed to a five-year contract to distribute the product in New York state.

Air New Zealand Ltd. (AIR NZ) dropped 2 cents, or 1.6 percent, to NZ$1.27. Competition for government-controlled Air New Zealand may increase after Qantas said its low-fare Jetstar unit will begin flights between Australia and New Zealand on Dec. 1.

Briscoe Group Ltd. (BGR NZ), a New Zealand retailer whose stock is recovering from a two-year slump, climbed 12 cents, or 9.9 percent, to NZ$1.33. The company said second-quarter sales rose 12 percent as it sold more home ware products.

Scott Technology Ltd. (SCT NZ), which exports automated machinery for the appliance industry, fell 2 cents, or 0.8 percent, to NZ$2.61. The stock has dropped 5 percent since the company said July 28 it expected a second-half loss as a higher New Zealand dollar reduced the income from the sales of machinery to overseas buyers.

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

Last Updated: August 2, 2005 21:39 EDT