ASIAN stocks rose yesterday, led by energy companies, as oil rose to a record above $85 a barrel.

"Given limited oil supplies and that China's demand continues to be strong, the outlook for oil-related stocks remains positive in the long run," Carmen Au-Yeung, who helps manage the equivalent of US$12 billion in global equities at Comgest (Far East) Ltd in Hong Kong, told Bloomberg News.

The Morgan Stanley Capital International Asia-Pacific Index added 0.5 percent to 168.63 in Tokyo. Benchmarks in Hong Kong and India climbed to records. Japan's Nikkei 225 Stock Average rose 0.2 percent, while the broader Topix index lost 0.1 percent.

An index of energy stocks in MSCI's Asia-Pacific measure gained four percent, the most among the benchmark's 10 industry groups.

Benchmark oil prices in New York yesterday rose as much as 1.8 percent to a record US$85.19 a barrel and traded at US$84.87 at 7:32pm Hong Kong time.

Shares in PetroChina, the country's biggest oil company, surged in Hong Kong to a record HK$18.38, swelling the company's market value to HK$3.27 trillion ($422 billion) at the midday break. That's more than General Electric's US$420.4 billion and is second worldwide only to Exxon Mobil Corp's US$518.5 billion in value.

Oil and natural gas output at PetroChina rose 4.3 percent in the first nine months of the year as demand increased in the world's fastest-growing major economy, the company said.

BHP shares climbed 0.7 percent to A$46.51 (US$42.19). Woodside Petroleum Ltd, Australia's No. 2 oil producer, gained one percent to A$54.50.

Cnooc Ltd, China's largest offshore oil company, jumped 7.8 percent to HK$14.60 in Hong Kong. The company plans to more than double production at the Bohai Bay field in northeastern China in the next five to six years, according to company officials.

AGL Energy Ltd, Australia's biggest electricity and gas retailer, led a decline among utility shares after the company cut its full-year profit estimate. The stock tumbled 17 percent to A$13.03, its biggest closing slide on record. Reduced retail energy margins and higher natural gas costs contributed to the lower profit estimate, AGL Energy said.

(By Darren Boey, Bloomberg News)