Asian stocks rose, led by material producers and Japanese trading companies, after Australia’s new prime minister said she is willing to negotiate with mining companies over a resources tax proposed by her predecessor. BHP Billiton Ltd., the world’s No. 1 mining company, gained 2 percent in Sydney after saying it was encouraged by Julia Gillard’s ousting of Kevin Rudd as the country’s premier. Mitsubishi Corp., which has mining investments in Australia, climbed 1.9 percent in Tokyo. Takeda Pharmaceutical Co. increased 0.9 percent after saying it plans to set up a subsidiary in South Korea. “Taxes on mining companies may ease up after the change in prime ministers in Australia,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees the equivalent of $94 billion. The MSCI Asia Pacific Index increased 0.6 percent to 117.65 at 1:34 p.m. in Tokyo, following a two-day decline. About five stocks advanced for every three that fell. Gauges of raw- material producers and health-care stocks climbed more than 1 percent, the biggest gains of 10 industry groups. Australia’s S&P/ASX 200 Index gained 0.4 percent. Japan’s Nikkei 225 Stock Average advanced 0.6 percent and South Korea’s Kospi index rose 0.5 percent. Hong Kong’s Hang Seng Index added 0.1 percent. China’s Shanghai Composite Index rose 0.4 percent. Leadership Ballot Futures on the Standard & Poor’s 500 Index added 0.2 percent. The gauge declined 0.3 percent after a government report showed sales of new homes in the U.S. sank in May and the Federal Reserve signaled Europe’s debt may harm American growth. Mining stocks gained after Gillard was sworn in as Australia’s first female prime minister. The Welsh-born premier was elected unopposed after Rudd withdrew from a leadership ballot by the ruling Labor party today. Support for Rudd began to slide in polls in April after he shelved his carbon-trading proposal, a key campaign pledge when he won office in November 2007. Then he proposed a 40 percent tax on the “super profits” of resource projects in Australia, the world’s biggest shipper of coal and iron ore, and refused to back down even after members of his own party objected. BHP rose 2 percent to A$39.91 and was the biggest support to the MSCI Asia Pacific Index’s advance. Rio Tinto Group, the world’s third-biggest mining company, advanced 2.3 percent to A$72.14. Macarthur Coal Ltd., the world’s biggest exporter of pulverized coal, jumped 5.3 percent to A$12.21. ‘Dramatic Development’ Mitsubishi Corp., which gets about 40 percent of sales from commodities, rose 1.9 percent to 2,027 yen in Tokyo. Yanzhou Coal Mining Co., a Chinese energy company, climbed 2.3 percent to HK$17.58 in Hong Kong. Gillard’s appointment is positive for the resources industry in Australia, the world’s biggest shipper of coal and iron ore, Keith de Lacy, Macarthur’s chairman said by phone. Gillard said in Canberra today that “the government door is open” to negotiate on the proposed resources tax with mining companies. “It’s a very dramatic development,” said Stephen Halmarick, Sydney-based head of investment-markets research at Colonial First State Global Asset Management, which manages about $135 billion. “The markets will be looking to her to move quite quickly to stabilize the debate and come to a resolution.” The MSCI Asia Pacific Index has climbed 8.2 percent from a 10-month low on May 25 as concerns eased that Chinese measures to curb property prices and Europe’s debt crisis will hurt global growth. Yesterday’s new home sales data came a day after a National Association of Realtors report showed purchases of existing houses in the U.S. unexpectedly fell. ‘Mixed Signals’ “Investors had perceived the situation in Europe to have stabilized, and that is the reason why the market had been strong,” said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. “But when people look further ahead, there are still difficulties. There seem to be a lot of mixed signals coming from the U.S.” Takeda Pharmaceutical, Asia’s largest drugmaker, increased 0.9 percent to 3,855 yen after saying it plans to set up a South Korean subsidiary in August to market key drugs. The unit will be located in Seoul, Takeda said in a statement. Eisai Co. climbed 1.9 percent to 3,035 yen after the company’s Pariet medicine, a so-called proton pump inhibitor that helps relieve symptoms of stomach ulcers, was approved for expanded use in Japan. To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Akiko Ikeda in Tokyo at iakiko@bloomberg.net.

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