``Economic fundamentals remain strong and that's why commodity prices are going up,'' said Nobuki Goto, who helps oversee about $14 billion as a general manager at Tokio Marine Asset Management Co. in Tokyo. ``That's giving some support to commodity stocks.'' Exporters such as Honda Motor Co. and Creative Technology Ltd. fell as the increase in oil raised concern higher fuel costs will dent consumer demand. The Morgan Stanley Capital International Asia-Pacific Index added 0.1 percent to 117.34 at 2 p.m. in Tokyo. A measure of energy shares posted the biggest percentage gain. Japan's Nikkei 225 Stock Average fell 0.4 percent to 15,483.99, while the Topix index was little changed. Key indexes rose in South Korea, Malaysia, Indonesia, Thailand, India and China. They fell elsewhere. New Zealand's NZX 50 Index lost 1.3 percent, the region's biggest drop, on speculation the central bank will raise interest rates to a record this week. Crude-oil futures climbed to as high as $60.80 a barrel yesterday in New York. The contract closed at $59.91 a barrel, the highest closing price since Nov. 4. Oil was at $59.75 in after-hours trading and has gained 37 percent this year. The MSCI Asia-Pacific Energy Index, which tracks 33 stocks, added 1.3 percent, taking its gain this year to 31 percent. Inpex jumped 5.7 percent to 1 million yen. Cnooc, China's third- largest oil company, rose 1.9 percent to HK$5.45. Woodside, Nippon Oil Woodside Petroleum Ltd., Australia's second-largest oil and gas company, rose 1.3 percent to A$36.36. Nippon Oil Corp., Japan's biggest petroleum refiner, jumped 3.7 percent to 934 yen amid expectations the company will be able to pass on higher oil costs to customers. Higher fuel prices ``help boost profit margins,'' said Renault Kam, who helps manage about $1 billion in Asia at Atlantis Investment Management in Hong Kong. ``The gain in oil prices is good for energy stocks.'' Honda, which is the most dependent on U.S. sales among Japan's top three carmakers, fell 1.4 percent to 7,010 yen. Creative Technology, a maker of MP3 music players that compete with Apple Computer Inc.'s iPods, fell 0.7 percent to S$14.10 in Singapore. ``Higher oil prices will raise material costs and that is a blow to the U.S. economy,'' said Atsushi Osa, who helps oversee $4.1 billion at Sumitomo Mitsui Asset Management Co. in Tokyo. ``Exporters are the most vulnerable to such slowdown.'' Sony Corp., the world's second-biggest consumer electronics maker, dropped 1.5 percent to 4,490 yen. AU Optronics, Mizuho AU Optronics Corp., the world's third-largest maker of flat-panel displays used in computers and televisions, tumbled 6.7 percent to NT$45.7. The stock was cut to ``underperform'' from ``in-line'' at Goldman, Sachs & Co. Shares of Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Resona Holdings Inc. advanced. David Atkinson, a Tokyo-based banking analyst at Goldman Sachs (Japan) Ltd., yesterday raised his ratings on the three stocks, saying a possible shift in retail banking business will boost their valuations compared with their global peers. Mizuho, Japan's second-largest lender, added 3 percent to 927,000 yen. Sumitomo Mitsui, the third-largest, climbed 4.4 percent to 1.2 million yen. Resona, the fourth largest bank, rose 4 percent to 442,000 yen. New Zealand The New Zealand index had its biggest one-day drop since Oct. 21. It has fallen 2.9 percent this month. The central bank will probably raise borrowing costs on Dec. 8 to a record 7.25 percent, according to 13 of 14 economists surveyed by Bloomberg. Fisher & Paykel Appliances Holdings Ltd., the nation's largest appliance maker, dropped 5.1 percent to NZ$3.32. It gets about 61 percent of its sales in U.S. dollars. Fletcher Building Ltd., the biggest building products maker, dropped, declined 2.1 percent to NZ$7.10. Citigroup Inc. today said there is a risk economic growth next year could be less than 1 percent. Growth this year will probably slow to 2.4 percent from 4.4 percent in 2004, it said. ``There are expectations of a rate increase in a couple of days,'' said Bryon Burke, head equities dealer at ABN Amro Craigs Ltd. in Tauranga, New Zealand. ``It is a retail-led sell- off as investors prefer to take cash out ahead of Christmas, and ahead of concern the market is about to turn.'' PIN/BLOOMBERG