May 2 (Bloomberg) -- Japan's Topix stock index gained as better-than-expected earnings from Matsushita Electric Industrial Co. and Mitsui Fudosan Co. eased concern that a slowing U.S. economy will dent profit growth.

``There are still companies coming out with strong earnings in spite of the fact the overall earnings momentum will slow,'' said Shigeharu Shiraishi, who helps manage about $16 billion in assets as a managing director at Societe Generale Asset Management (Japan) Co. in Tokyo. ``I still see some buying opportunities.''

The Topix index added 0.2 percent to 1131.80 at the 3 p.m. close in Tokyo. The Nikkei 225 Stock Average fell 0.1 percent to 11,002.11. Fuji Photo Film Co. led declines by exporters after a U.S. government report last week showed the world's biggest economy grew at the slowest pace in two years.

Australia's S&P/ASX 200 Index climbed 0.7 percent after crude oil prices plunged below the key $50 a barrel figure, and on expectations the central bank won't raise interest rates when it meets tomorrow, boosting consumer spending. Westfield Group and Wesfarmers Ltd. paced gains.

In South Korea, Hyundai Heavy Industries Co. led a 0.8 percent gain by the Kospi after winning a 618 billion won ($619 million) order to build a gas development facility in Nigeria.

Stock markets in Thailand, Taiwan, Hong Kong, Singapore, China and Malaysia are closed for public holidays.

Matsushita Electric, the world's biggest maker of consumer electronics, advanced 2.8 percent to 1,580 yen, its biggest jump since Oct. 4., after it forecast on April 28 profit will more than double to 110 billion yen ($1 billion) this fiscal year.

Mitsui Fudosan, Asia's biggest property developer, jumped 3.2 percent to 1,212 yen. The company on April 28 said it had a profit in the fourth quarter, reversing a loss from a year earlier. It is forecasting annual net income to increase 74 percent in the current business year, helped by rising revenue from office leasing.

Japan

Fuji Photo Film Co., the world's second-largest filmmaker, fell 1.7 percent to 3,410 yen. U.S. sales accounted for almost 20 percent of sales last year.

Honda, Japan's No. 3 automaker, lost 1 percent to 5,040 yen. The carmaker, which is dependant on the U.S. the most among Japan's top three automakers, had more than 75 percent of its sales in North America last year.

U.S. gross domestic product expanded at a 3.1 percent annual rate in the first three months of 2005 as consumers and businesses reduced spending, according to a Commerce Department report released April 28. Economists in a Bloomberg survey expected a 3.5 percent growth rate.

The U.S. GDP report triggered declines in U.S. stocks last week. A drop in crude oil prices and a government report showing personal spending and incomes increased more than expected helped a rebound in U.S. stocks on April 29.

Investors may be reluctant to take large bets before the U.S. Federal Reserve's interest-rate decision during Japan's public holiday and economic reports including labor data later this week, Chuo's Seki said.

Oil Plunges

Stocks of oil-consuming companies, such as Korean Air Lines Co., gained as crude plunged 1.4 percent to $49.05 in after-hours trading in New York, adding to a 4 percent slump April 29.

Korean Air Lines, the nation's biggest carrier, gained 1.9 percent to 18,700 won.

Consumer stocks such as Australia's Westfield, the world's biggest owner of shopping malls, climbed 1 percent, to A$16.38, on optimism lower petrol prices will boost consumer spending.

``Companies want to see falling oil prices because they benefit directly as their own expenses fall, and indirectly because it spurs consumers to spend more on their products,'' said Angus Gluskie, who oversees the equivalent of $468 million at White Funds Management in Sydney.

Westfield and Wesfarmers, the nation's biggest hardware store owner, also rose on optimism the Reserve Bank of Australia won't increase interest rates when it meets tomorrow. Wesfarmers added 40 cents, or 1.1 percent, to A$36.30.

Twenty of 22 economists surveyed after the inflation report on April 27 said rates would be left unchanged, compared with eight of 20 surveyed on April 22.

The odds of a second interest-rate increase in three months plummeted after the report showed that consumer prices rose a less-than-expected 0.7 percent in the first quarter.

Central bank Governor Ian Macfarlane in March raised rates for the first time in 15 months, by a quarter-point to 5.5 percent, saying he needed to reduce the risk of an ``unacceptable rise in inflation.'' Since then, reports have shown the economy grew at its slowest pace in four years, consumer confidence had a record decline and housing approvals fell.

Hyundai Heavy Jumps

Hyundai Heavy, the world's biggest shipbuilder, advanced 1.6 percent to 51,500 won.

The contract from Chevron Nigeria will be completed by April 2008, the Ulsan, South Korea-based Hyundai Heavy said in a statement on Friday. Chevron Nigeria is a unit of ChevronTexaco, the second-largest U.S. oil company.

``Hyundai Heavy has not only been winning shipping contracts, but orders for facilities and other heavy equipment, which diversifies its earnings,'' said Jeon Jeong Woo, who manages the equivalent of $451 million, at Daehan Investment Trust Management Co. in Seoul. He declined to say whether he held any Hyundai Heavy shares.

Hyundai Heavy and other South Korean engineering companies are winning record orders to build vessels as trade increases between Asia, the U.S. and Europe. Hyundai Heavy in March received contracts for building ships, engines and other products valued at $1.9 billion, 14 percent more than a year earlier.

Fuji Photo Film Co. (4901 JT)
Honda Motor Co. (7267 JT)
Hyundai Heavy Industries Co. (009540 KS)
Korean Air Lines Co. (003490 KS)
Matsushita Electric Industrial Co. (6752 JT)
Mitsui Fudosan Co. (8801 JT)
Wesfarmers Ltd. (WES AU)
Westfield Group (DWC AU)

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

Last Updated: May 2, 2005 07:40 EDT