Australian Stocks Advance, Led by Rio Tinto on BHP Buyout Bid

Australian stocks rose as Rio Tinto Group surged to a record after BHP Billiton Ltd. renewed its offer to buy the miner in what would be the biggest acquisition in history.

``If BHP is confident enough about the macroeconomic outlook to do this, then it tells me they've got a positive view for commodities over the next five years,'' said Hans Kunnen, who helps manage $117 billion at Colonial First State Global Asset Management in Sydney, including BHP and Rio stock. ``The outlook is positive for resources stocks.''

BHP dropped after investors and analysts said it may have to add cash to its stock offer for it to be successful.

National Australia Bank Ltd. led financial stocks higher after the lender posted a record second-half profit and Federal Reserve Chairman Ben S. Bernanke spurred speculation of another cut in U.S. borrowing costs.

The S&P/ASX 200 Index advanced 24.10, or 0.4 percent, to 6,545.70 at the close in Sydney, after sliding the most in three months yesterday. It is headed for a 2.3 percent decline this week. Almost the same number of stocks rose as fell.

Rio Tinto, the world's third-largest miner rose to a record with its biggest gain in more than 20 years, jumping A$17.50, or 15 percent, to A$130.90. The number of Rio shares traded today was more than three times the stock's daily average over the past six months. The stock has increased in value by a third in less than eight weeks.
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