SHANGHAI (Bloomberg) -- Asian stocks fell to a two-year low, led by commodity producers, after oil slumped to its lowest since April and gold declined, countering gains by utility companies and airlines.

Cnooc Ltd., China’s largest offshore oil explorer, and Sumitomo Metal Mining Co., Japan’s biggest gold producer, both dropped more than 4 percent. Tokyo Electric Power Co. added 4.2 percent and Korean Air Lines Co. climbed 10 percent as lower energy costs boosted their profit outlook. China Huiyuan Juice Group Ltd. surged 167 percent in Hong Kong after Coca-Cola Co. offered to buy it.
“There’ll probably be more pain in the near term for commodities,” said Prasad Patkar, who helps manage the equivalent of about $1.8 billion at Platypus Asset Management in Sydney. “Relief from falling energy prices provides a significant boost to earnings of fuel-dependent companies.”
The MSCI Asia Pacific Index declined 0.7 percent to 120.16 at 2:20 p.m. in Tokyo, headed for the lowest close since July 19, 2006. Raw-materials and energy shares had the biggest falls among the 10 groups on the index, while utility companies led gains.
The measure has declined 24 percent this year as the global economy slowed and financial companies reported more than $500 billion in write-downs and credit losses.
------Australian slowdown
Australia’s economic expansion slowed in the second quarter to 0.3 percent, the weakest pace in two years, government figures on Wednesday show. National Australia Bank Ltd. gained 1.5 percent on speculation slowing growth will give the central bank more room to cut interest rates.
Japan’s Nikkei 225 Stock Average added 0.6 percent to 12,679.78. Bridgestone Corp., the world’s largest tiremaker, gained 5.1 percent as raw-material costs declined. South Korea’s Kospi Index added 0.9 percent. Hyundai Motor Co. advanced after workers agreed to a pay increase, signaling an end to stoppages.
Most Asian markets open for trading fell, while India’s markets are closed for a holiday. U.S. stocks declined as a slump in commodity producers overshadowed gains in airlines and consumer companies, sending the Standard & Poor’s 500 Index down 0.4 percent. S&P 500 futures were little changed on Wednesday.
The Reuters/Jefferies CRB Index of commodities declined the most since March 19, led by energy prices, as Hurricane Gustav spared U.S. Gulf petroleum rigs the destruction caused by Katrina and Rita in 2005. Commodities also slumped after the U.S. dollar jumped to the highest since October against six major currencies, eroding the appeal of raw materials priced in the U.S. currency.
-----Cnooc, Newcrest
Cnooc tumbled 5.3 percent to HK$10.78 in Hong Kong. Inpex Holdings Inc., Japan’s largest oil explorer, lost 4.6 percent to 1.018 million yen. Sumitomo Metal sank 6.4 percent to 1,253 yen, while Newcrest Mining Ltd., Australia’s largest gold producer, slumped 7.6 percent to A$22.95.
“Concerns have deepened that commodities and energy prices will drop further,” said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co., which oversees $285 million.
Gasoline futures tumbled 9.2 percent. Oil futures for October delivery fell as much as 8.7 percent to $105.46, the lowest since April 4, before closing at $109.71 yesterday. Gold futures lost 3 percent, the biggest drop since Aug. 11.
Tokyo Electric, the world’s second-biggest non-state buyer of liquefied natural gas, rose 4.2 percent to 3,240 yen. Korean Air, South Korea’s largest carrier, rose 10 percent to 34,100 won.
National Australia Bank, the nation’s largest by assets, gained 1.5 percent to A$25.18. Australia’s economic expansion slowed to the weakest pace in more than three years, stoking speculation the central bank will add to Tuesday's quarter percentage point interest-rate cut, the first since 2001.
Bridgestone added 5.1 percent to 1,942 yen. About seven gallons of oil are required to produce a car tire, according to the Rubber Manufacturers Association. Oji Paper Co., Japan’s biggest user of high-sulfur fuel oil, climbed 7.9 percent to 591 yen, the highest in a year.
Hyundai Motor, South Korea's largest automaker, rose 1.3 percent to 71,600 won, after workers tentatively agreed yesterday to a 5.6 percent increase in basic pay.
Nippon Steel Corp., the world’s second-largest steelmaker, fell 4.1 percent to 497 yen, the most in three weeks, after rival ArcelorMittal said it will cut South African steel prices, raising concern prices will drop in Asia.
JFE Holdings Inc., Japan’s No. 2 steelmaker, dropped 5.1 percent to 4,450 yen. South Korea’s Posco declined 2.8 percent to 470,000 won. BlueScope Steel Ltd., Australia’s largest steelmaker, lost 4.3 percent to A$8.87.
Komatsu Ltd., the world’s second-largest maker of earthmoving equipment, dropped 6.4 percent to 2,110 yen, the most since Aug. 1. Mitsubishi UFJ cut its rating to “market perform” from “outperform,” citing increased concern that Komatsu may miss its profit forecast due to falling demand for construction machinery globally.