March 4 (Bloomberg) -- Asian energy stocks rose, led by Inpex Corp. and Woodside Petroleum Ltd., on optimism earnings will increase after crude oil prices climbed above $55 a barrel, the highest in more than four months.

``I'm bullish on natural resource stocks because you can't deny their earnings potential,'' said Shigeharu Shiraishi, who helps oversee the equivalent of $16 billion in assets as a managing director at Societe Generale Asset Management (Japan) Co. ``The gain in commodity prices is a reflection of surging global demand, and that's going to support their shares.''

Japan's Nikkei 225 Share Average advanced 0.1 percent to 11,873.05 at the 3 p.m. close in Tokyo, rounding off a 1.8 percent gain for the week. The Topix rose 0.2 percent to its highest since April 28. Its Mining Index, which includes Inpex, was the best performer among the benchmark's 33 industry groups.

Pakistan's Karachi Stock Exchange Index rose 3.4 percent, the biggest gain of any market in the region, after the government said its asset-sale plan is on track. The benchmark is the world's second-best performer this year out of 60 measures that Bloomberg tracks globally.

Honda Motor Co. led declines by manufacturers on concern higher energy costs will damp consumer spending. Technology shares dropped after Hynix Semiconductor Inc. and Chartered Semiconductor Manufacturing Ltd. lowered revenue forecasts.

The Morgan Stanley Capital International Asia-Pacific Index, which measures 945 stocks in the region, fell 0.3 percent to 103.10, paring its gain this week to 1.2 percent. The index has risen for a sixth straight week, matching the longest winning streak in September 2003. Other stock benchmarks rose, except for those in Taiwan, Hong Kong, Malaysia and China.

Oil Prices Climb

Crude oil futures for April delivery recently traded at $53.61. They traded as high as $55.20 yesterday, 47 cents short of the all-time high reached on Oct 25. Futures are up 46 percent from a year earlier.

Inpex, Japan's biggest oil explorer, climbed 3.5 percent to 590,000 yen. Woodside Petroleum, Australia's second-largest oil company, added 0.8 percent to A$22.60. PTT Exploration & Production Pcl, Thailand's second-largest gas producer, jumped 3.3 percent to 318 baht.

Twenty-eight of 59 respondents in a Bloomberg survey of analysts and strategists, or 48 percent, predicted oil prices will gain next week on speculation global oil production will fail to keep pace with increasing demand.

Twenty-two, or 37 percent, said they will fall and nine forecast little change. A week ago, 52 percent of respondents said prices would increase. Fifteen of the last 22 surveys correctly predicted the market's direction.

Pakistan

Oil & Gas Development Co., Pakistan's biggest explorer, surged 7.4 percent to 137.10 rupees. Pakistan State Oil CO., the biggest supplier, added 2.5 percent to 439.50 rupees.

Pakistan's asset sale minister, Abdul Hafeez Shaikh, said yesterday the government plans to sell shares in United Bank Ltd., the nation's fourth-largest lender by assets, and State Life Insurance Corp., the biggest, by June. Pakistan will shortlist bidders for Pakistan Telecommunication Co., the country's no. 1 telephone company, by March 12.

The government ``announced an aggressive plan,'' said Asif Ali Qureshi, head of research at AMS Securities in Karachi. That has ``has given hopes to investors there won't be any delay or hindrance in going forward with the program.''

`Hurting Sentiment'

Honda, which gets as much as 90 percent of its operating profit from North America, fell 0.9 percent to 5,620 yen. Samsung Electronics Co., South Korea's biggest exporter, slid 1.7 percent to 510,000 won.

AU Optronics Corp., Taiwan's largest maker of flat-panel displays used in computers and televisions, fell 1.8 percent to NT$45.80.

Higher oil prices raise raw-material costs and dent consumer spending power. Signs of rising inflation helped drag the University of Michigan's consumer sentiment index down for a second month in February. U.S. Treasury Secretary John Snow on Feb. 24 said the price of crude oil is ``too high.''

``Higher oil prices are hurting sentiment in Asia, which relies so much on demand from overseas,'' said Tomokatsu Mori, who helps oversee the equivalent of $7.4 billion in assets at Fukoku Capital Management Inc. in Tokyo. ``People are now worried about consumer spending in the U.S.''

Hynix Semiconductor, the world's second-largest maker of memory chips, slipped 3.5 percent to 13,900 won. Chip-price declines will probably lower operating profit to below 30 percent of revenue this year, O.C. Kwon, a Hynix vice president, said at a presentation to investors yesterday after the market closed.

Chartered, Tokyo Electron

Chartered Semiconductor slid 3.7 percent to S$1.04. The company cut its first-quarter revenue forecast and said its net loss will be ``at the higher end'' of its predictions as computer demand slowed.

``Things are going to be difficult for the industry but you might be seeing problems being more exacerbated at Chartered because of the focus on communications,'' said Rohan Suppiah, an analyst with OCBC Securities in Singapore, who has an ``underperform'' recommendation on the stock.

Other semiconductor-related stocks in the region also declined. Taiwan Semiconductor Manufacturing Co., the world's largest supplier of made-to-order chips, lost 1.9 percent to NT$52.50. Tokyo Electron Ltd., the world's No. 2 maker of semiconductor production equipment, lost 1.2 percent to 6,640 yen.

To contact the reporters on this story: Darren Boey in Hong Kong at dboey@bloomberg.net; Neha Kumar in Tokyo at nkumar2@bloomberg.net.

Last Updated: March 4, 2005 02:50 EST