Asian News

[Ichiro]

22may-FTSE gains on oil, mining stocks; banks weigh

By Ana Nicolaci da Costa

LONDON, May 21 (Reuters) - Britain's FTSE 100 .FTSE rose on Monday as oil and mining stocks, benefiting from firm prices and consolidation talk, fuelled gains in a market that rallied to its highest closing level in nearly 7 years last week.

The FTSE was up 0.3 percent at 6,663.5 at 1103 GMT after rising to its highest close since September 2000 on Friday.

BG Group (BG.L: Quote, Profile , Research) was the top performer, rising 3.7 percent on speculation ExxonMobil Corp. (XOM.N: Quote, Profile , Research) may be interested in the gas producer. BG Group declined to comment.


Oil stocks contributed nearly 22 points to the index, also benefiting from talk of a possible tie-up between BP (BP.L: Quote, Profile , Research) and Royal Dutch Shell (RDSa.L: Quote, Profile , Research), and oil prices <LCOc1> at above $70 a barrel.

"We are seeing some good buying on the oil sector across the board. Bit of takeover speculation this morning (surrounding) Exxon-BG, that might be another reason," one London trader said.

http://yahoo.reuters.com/news/artic...5-21_11-38-09_L21522336&type=comktNews&rpc=44

 

[Ichiro]

22may- AP
Dollar Edges Up Against Euro
Monday May 21, 7:15 am ET
Dollar Edges Up Against Euro As 13-Nation Currency Strikes Record High Against Yen

FRANKFURT, Germany (AP) -- The dollar edged higher against the euro, as currency from the 13-nation block hit a record high against the Japanese yen on moves by China.

The euro bought $1.3500, down nominally from the $1.3505 it bought in New York trading late Friday.

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Against the yen, the euro rose after the Japanese currency was ignored by a weekend meeting of finance officials with the Group of Eight near Potsdam, Germany.

The euro was up some 0.15 percent to buy 163.91 yen, its highest point since it was introduced in 1999.

The yen's fall came after China on Friday agreed to let its yuan rise faster against the dollar and to cool its sizzling economy ahead of what are expected to be contentious talks in Washington over Beijing's soaring trade surplus.

The free-floating yen sometimes acts as a proxy to the tightly managed yuan on currency markets.

The U.S. dollar bought 121.33 yen, compared with 121.15 yen late Friday.

http://biz.yahoo.com/ap/070521/dollar.html?.v=3

 

[Ichiro]

22may-CNN money-Pushing into uncharted waters
Stock futures point to a higher open after deal for Alltel, as Dow starts at record level and S&P nears its zenith.
May 21 2007: 6:20 AM EDT

NEW YORK (CNNMoney.com) -- Stocks appeared poised to make another run at record highs Monday, helped by news of a major telecom deal.

Stock futures were mixed in early trading, but a comparison to fair value, which predicts the direction of stocks, pointed to a slightly higher open for both the blue chip S&P 500 and the tech-heavy Nasdaq.

The S&P starts the day only five points away from what would be a record high close, while the Dow Jones industrial averaged ended at yet another record high in Friday trading.

The buyout unit of Wall Street investment bank Goldman Sachs (Charts, Fortune 500) and private equity firm TPG Capital announced early Monday they are buying wireless telecom Alltel (Charts, Fortune 500) for $25 billion, or $71.50 a share, a premium of nearly 10 percent from Friday's close. Shares of Alltel are up 9.4 percent in Frankfurt trading early Monday.

http://money.cnn.com/2007/05/21/markets/stockswatch/index.htm?source=yahoo_quote

 

[Ichiro]

21may- Reuters-Stocks may fly on M&A; oil clouds view
Sunday May 20, 10:06 am ET
By Kristina Cooke

NEW YORK (Reuters) - If bulls have their way, U.S. stocks will extend their streak of gains this week with another wave of takeovers expected and worries about a housing fallout diminishing.

But rocketing crude oil prices along with disappointing outlooks from major retailers, could spoil the party.

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U.S. gasoline prices may climb to $4 a gallon by Memorial Day, analysts have said. And if that happens, it could force consumers to curtail discretionary spending as they pay more to fill up their gas tanks.

Apparel retailer Gap Inc. (NYSE:GPS - News) and Target Corp. (NYSE:TGT - News)are among major retailers due to post quarterly results this week.

They follow hot on the heels of heavyweight retailers Wal-Mart (NYSE:WMT - News) and Home Depot (NYSE:HD - News), which reported lackluster earnings last week. Wal-Mart said its second-quarter earnings could miss targets.

"We will be looking for insight into what the second quarter will look like for retailers and whether there is a conscious consumer pullback," said Edward T. Maraccini, portfolio manager at Johnson Asset Management in Racine, Wisconsin.

"But every time the market starts to sell off, M&A activity props it back up. And if you sell stocks, where do you go? You're going to be hard-pressed to find another asset class people are going to get excited about."

http://biz.yahoo.com/rb/070520/column_stocks_outlook.html?.v=1

 

[Ichiro]

22may-AP Stocks Point to Higher Open
Tuesday May 22, 6:57 am ET
By Joe Bel Bruno, AP Business Writer
U.S. Stocks Point to Higher Open on Acquisitions, Earnings

NEW YORK (AP) -- Stock futures signaled an upbeat start on Wall Street Tuesday, as investors remained confident that continued takeover activity and the last blast of first-quarter earnings reports will drive the market higher.


An advance after the opening bell would add to yet another record-setting session on Monday. The Standard & Poor's 500 index briefly passed its record close of 1,527.46 for the first time in more than seven years.

Futures trading early Tuesday indicated stocks will have enough momentum to again cross that mark.

Standard & Poor's 500 index futures rose 2.20, or 0.07 percent, to 1,529.00. Nasdaq 100 index futures rose 3.25, or 0.17 percent, to 1,929.50. Dow futures expiring in June was rose 7, or 0.05 percent, at 1,3578.00.

There was little in the way of economic news expected during the session. The Richmond Federal Reserve Bank's manufacturing index will be released in the morning.

Investors may begin to take positions ahead of the Commerce Department's report on durable goods that is scheduled for Thursday. The department also reports on new home sales Thursday, while the National Association of Realtors releases data on existing home sales Friday.

In corporate news, MGM Mirage Inc. may rise after Tracinda Corp. -- the investment arm of billionaire investor Kirk Kerkorian -- said it entered into negotiations to buy the casino operator's Bellagio Hotel and CityCenter properties. Shares of MGM surged 16 percent in after-hours trading on Monday.
http://biz.yahoo.com/ap/070522/wall_street.html?.v=4

 

[Ichiro]

22may-AP-Most Asian Markets Rise
Tuesday May 22, 7:03 am ET
Most Asian Markets Rise; China, South Korea, Singapore, Philippines Hit New Highs

HONG KONG (AP) -- Most Asian markets advanced Tuesday as Chinese investors lifted stocks to new records, shrugging off authorities' efforts to cool market.

Stocks in South Korea, Singapore, Indonesia and the Philippines also rose to new highs.


China's stock markets forged higher despite moves Friday by the central bank to raise interest rates and reserve requirements. The Shanghai Composite Index gained 0.9 percent to 4,110.38, breaking above 4,100 for the first time. The Shenzhen Composite Index climbed 1.4 percent to 1,198.41, also a record high.

Analysts said that despite being packaged to appear significant, the measures were too small to have any meaningful effect, given the strong appetite for shares among retail investors, who have been flooding into the market seeking higher returns than they can get from bank deposits and other limited investment options.

"Unfortunately in this crazy investment environment, those kinds of indirect signals get ignored," said Qu Hongbin, an economist at HSBC.

http://biz.yahoo.com/ap/070522/asian_markets.html?.v=1

 

[Ichiro]

22may- AP-Euro Slips Slightly Against U.S. Dollar
Tuesday May 22, 5:51 am ET
Euro Slips Slightly Against U.S. Dollar but Expected to Rise on German Sentiment

FRANKFURT, Germany (AP) -- The euro slipped slightly against the dollar on Tuesday but analysts said the common currency was set to rise if a key report on German investment sentiment reports more gains.



The 13-nation euro bought US$1.3464 in morning trading, down nominally from the US$1.3467 it bought in New York trading late Monday.

But traders were looking to the monthly index of German investor sentiment that is expected to report a sixth consecutive increase in confidence in Europe's biggest economy, which will likely push the euro higher against the dollar.

http://biz.yahoo.com/ap/070522/euro_dollar.html?.v=1

 

[Ichiro]

22may-AP-Dollar Rises in Asia
Tuesday May 22, 2:53 am ET
Dollar Rises in Asia on Fading Concern About U.S. Economy

TOKYO (AP) -- The dollar rose slightly in Asia Tuesday as strength on Wall Street and healthy earnings reports from American companies eased worries about the U.S. economy.

The dollar was trading at 121.48 yen midafternoon, up from 121.46 yen late Monday in New York. The euro slipped to US$1.3465 from US$1.3467.

But the dollar-buying seemed to run out of steam fairly quickly, traders said. Investors were keeping an eye on the two-day U.S.-China strategic economic dialogue that starts later in the day in Washington, D.C., they said.

http://biz.yahoo.com/ap/070522/asia_dollar.html?.v=1

 

[Ichiro]

23may- AP-Japanese Stocks Climb; Dollar Up vs. Yen
Wednesday May 23, 4:50 am ET
Japanese Stocks Climb for 3rd Straight Day, Lifted by Bank Shares; Dollar Up Against Yen

TOKYO (AP) -- Japanese stocks rose slightly Wednesday for a third straight session, led by bank shares.

The benchmark Nikkei 225 stock index rose 25.07 points, or 0.14 percent to finish at 17,705.12 on the Tokyo Stock Exchange. On Tuesday, the index added 0.7 percent.

Traders said the market is vulnerable to overseas factors, particularly a drop on Wall Street or signs of a slowdown in the U.S. economy, Japan's biggest export market.

"The Nikkei is still top-heavy at 17,500, so banks may be sold on dips if negative factors hit, such as a U.S. stocks fall overnight," said Yutaka Miura, manager at Shinko Securities.

http://biz.yahoo.com/ap/070523/japan_markets.html?.v=3

 

[Ichiro]

23may- AP
Dollar Moves Again on Euro
Wednesday May 23, 6:46 am ET
Dollar Gains Ground Against Euro Ahead of Economic Date Due From U.S. and Germany

BERLIN (AP) -- The dollar gained on the euro Wednesday as markets looked ahead to economic data due from the U.S. and Germany, Europe's largest economy.

The euro bought $1.3437 in morning European trading, down slightly from $1.3454 late Tuesday in New York. The dollar rose to purchase 121.71 Japanese yen from 121.57 the night before, while the British pound rose to $1.9775 from $1.9716.

The rise in the British currency came after the Bank of England released the minutes of its May 10 Monetary Policy Committee meeting, which showed that the decision to hike interest rates 25 basis points to 5.5 percent was unanimous. The minutes also said another increase might be necessary if events proceed as the bank expects.

http://biz.yahoo.com/ap/070523/dollar.html?.v=2

 

[Ichiro]

23may-European Stocks Rise on Bid Speculation; Vodafone, Rio Gain

By Sarah Jones

May 23 (Bloomberg) -- European stocks rose, sending the Dow Jones Stoxx 600 Index to the highest since September 2000, buoyed by takeover speculation in the telecommunications, utilities and mining industries.

Vodafone Group Plc led phone shares to their biggest gain in 10 months as investors speculated the companies may be attractive to private equity firms. Pennon Group Plc rallied to a record on expectations the British water company is a takeover target. Rio Tinto Group climbed after BHP Billiton Ltd. Chief Executive Officer Charles Goodyear said he's considering acquisitions and OAO GMK Norilsk Nickel raised its bid for LionOre Mining International Ltd.

``There is a lot of cash around and investors want the market to go higher,'' said Philip Manduca, who helps oversee about $500 million as managing partner at Titanium Capital in London. ``There is a lot more mergers and acquisitions to come.''

The value of takeovers in Europe has reached $1.22 trillion so far this year, according to data compiled by Bloomberg. Deals reached a record $1.6 trillion in 2006.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNJizOPYfw1Q&refer=home

 

[Ichiro]

23may-BOE Policy Makers Voted 9-0 to Raise Interest Rate (Update3)

By Brian Swint

May 23 (Bloomberg) -- Bank of England policy makers voted unanimously to raise the benchmark interest rate by a quarter- point this month and said that borrowing costs may need to increase again to contain inflation.

``The committee agreed that, should the economy continue to develop broadly in line with the central expectation, bank rate could be raised further as necessary,'' the nine-member Monetary Policy Committee said in the minutes of the May 9-10 meeting published in London today. They changed the rate to 5.5 percent, a six-year high, and some members considered a half-point move.

Investors added to bets on more increases today after the central bank's forecasts last week suggested that higher borrowing costs may be needed to bring inflation back to the 2 percent target. Governor Mervyn King said that companies may have more room to raise prices now, which could lead to faster wage growth and trigger an inflationary spiral.

``This marks quite a decisive hawkish shift,'' said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London. ``It's raised the chances that there will be another hike. The risks are clearly to the upside.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJa1TA_VWYMc&refer=home

 

[Ichiro]

23may-U.S. Stock-Index Futures Gain; Alcoa and Medtronic Advance

By Andreas Hippin

May 23 (Bloomberg) -- U.S. stock-index futures rose after Alcan Inc. said that Alcoa Inc.'s hostile bid was designed in part to protect itself from a takeover, intensifying mergers and acquisitions speculation.

Shares of Alcoa, the world's largest aluminum producer, gained in Germany, while Alcan, Canada's largest aluminum producer, climbed in France. Alcan has started talks with BHP Billiton Ltd. to fend off the Alcoa bid, the Globe and Mail reported. LionOre Mining International Ltd. advanced as OAO GMK Norilsk Nickel raised its bid for the Canadian nickel producer.

Financial and real-estate companies gained yesterday after Treasury Secretary Henry Paulson said the slump in the housing market is ``largely'' over. The advance may broaden today on takeovers, with some $1.05 trillion in deals involving U.S. companies having been announced this year.

``Mergers and acquisitions should continue to be a main driver of the rally,'' said Steffen Bender, who helps oversee the equivalent of $21 billion at LBBW Asset Management in Stuttgart, Germany. ``Looks like nothing's going to derail the positive sentiment for stocks.''

Medtronic Inc., the biggest maker of electronic heart devices, increased after fourth-quarter profit beat analysts' estimates. Target Corp. may be active. The second-largest U.S. discount chain reports earnings.

http://www.bloomberg.com/apps/news?pid=20601084&sid=aW0f0lQax_Q0&refer=stocks

Standard & Poor's 500 Index futures expiring in June added 6 to 1531.30 as of 11:02 a.m. in London. Dow Jones Industrial Average futures climbed 51 to 13,610. Nasdaq-100 Index futures increased 5.25 to 1925.50.

 

[Ichiro]

24may-aP-Stocks Retreat After Home Sales Data
Thursday May 24, 4:13 pm ET
By Joe Bel Bruno, AP Business Writer
Wall Street Slides As Investors Worry Interest Rate Cut Not Needed After Economic Data

NEW YORK (AP) -- Wall Street retreated Thursday after housing data showed sales surged in April by the largest amount in 14 years, damping hopes that an interest rate cut would be needed to stimulate the economy.

Investors were originally enthusiastic after the Commerce Department reported sales of single-family homes rose 16.2 percent last month after falling slightly in March. Even though the report showed the economy continues to expand, investors became unnerved by a record drop in home prices.

http://biz.yahoo.com/ap/070524/wall_street.html?.v=52

 

[Ichiro]

25may- AP-Japane Stocks Fall for 2nd Straight Day
Friday May 25, 4:04 am ET
Japanese Stocks Fall for 2nd Straight Day; Banks and Autos Decline

TOKYO (AP) -- Japanese stocks dropped Friday for a second straight day, dragged down by bank and auto shares.

The benchmark Nikkei 225 stock index fell 215.76 points, or 1.22 percent, to finish at 17,481.21 points on the Tokyo Stock Exchange. On Thursday, the index dipped 0.05 percent.


Speculation that the U.S. Federal Reserve may not cut interest rates weighed on exporters as they followed Wall Street's overnight drop lower.

Toyota Motor Corp. fell 1.49 percent to 7,280 yen (US$60.17), while and Nissan Motor shed 1.8 percent to 1,334 yen (US$10.98) Among electronics names, Sony Corp. fell 1.3 percent to 6,860 yen (US$56.47).

Still, continued strength in the Chinese stock market after comments earlier this week by former Federal Reserve Chairman Alan Greenspan about an impending correction for mainland shares was interpreted positively by many analysts.

"Investors here aren't pessimistic about Chinese stocks," said Teruhisa Ishikawa, manager of Investment at Mizuho Investors Securities.

http://biz.yahoo.com/ap/070525/japan_markets.html?.v=1

 

[Ichiro]

25may-AP-Dollar Slips in Asia
Friday May 25, 3:52 am ET
Dollar Slips in Asia As Traders Take Profit

TOKYO (AP) -- The dollar slips in Asia Friday as traders took profits, although they said they recent strong U.S. economic data would support the dollar.

The dollar was trading at 121.26 yen midafternoon, down from 121.39 yen late Thursday in New York.

The euro also fell as declines in global stock prices made traders cautious about keeping large holdings of euros. The common currency fell to US$1.3422 from US$1.3433, and to a two-week low against the yen of 162.20 from 162.86 yen late Thursday.

http://biz.yahoo.com/ap/070525/asia_dollar.html?.v=1

 

[Ichiro]

25may-U.S. Stocks Rise on Takeovers; NYSE Euronext, MGM Shares Gain

By Eric Martin

May 25 (Bloomberg) -- U.S. stocks rebounded after Nasdaq Stock Market Inc. and Coca-Cola Co. announced acquisitions, adding to this year's unprecedented pace of takeovers.

NYSE Euronext, owner of the world's largest stock market, advanced after Goldman, Sachs & Co. upgraded the shares on speculation of more consolidation among exchanges. MGM Mirage shares rose after the second-biggest casino company hired UBS AG to advise on a possible breakup being considered by Kirk Kerkorian.

Nasdaq's $3.7 billion offer for Swedish stock-exchange OMX AB and Coca-Cola's $4.1 billion purchase of Energy Brands Inc. are the latest of more than $1 trillion in deals announced so far this year, 64 percent more than at the same time last year. Today's acquisitions helped the stock market pare its weekly decline, the first since March.

``M&A activity continues to be an important driver of the market,'' said Michael Malone, a trading analyst at Cowen & Co. in New York. ``Equally important are expectations with regard to announcements over the weekend.''

The S&P 500 increased 5, or 0.3 percent, to 1512.51 as of 10:09 a.m. in New York. The Dow Jones Industrial Average added 35.27, or 0.3 percent, to 13,476.40. The Nasdaq Composite Index climbed 10.56, or 0.4 percent, to 2548.48.

U.S. exchanges will be closed Mon., May 28, for the Memorial Day holiday.

Stocks fell yesterday as bond yields continued a two-week surge. Both the S&P 500 and Dow average are poised to snap seven straight weeks of gains. In the past five days, the S&P 500 has dropped 0.7 percent and the Dow average has declined 0.5 percent. The Nasdaq has retreated 0.4 percent in the period.

http://www.bloomberg.com/apps/news?pid=20601087&sid=adWscXrGC55s&refer=worldwide

 

[Ichiro]

25may-Yuan Isn't the Cause of U.S. Trade Deficit, Wu Says (Update3)

By Yanping Li

May 25 (Bloomberg) -- The yuan isn't the cause of the U.S. trade deficit and a ``large'' appreciation would hurt China's economy, Vice Premier Wu Yi said, signaling the nation won't cave in to demands for faster gains.

``China will continue to reform its exchange rate on its own initiative, gradually,'' Wu said at a dinner in Washington after two days of talks with U.S. Treasury Secretary Henry Paulson that yielded no agreements on the currency and failed to quell calls in Congress for sanctions against China.

About 85 percent of China's trade surplus with the U.S. is generated by foreign companies such as Wal-Mart Stores Inc. exporting products from China that are no longer made in the U.S., Wu said, citing textiles, shoes and furniture. Imposing protectionist measures to cut last year's record $232.5 billion U.S. deficit with China would harm both nations, she said.

``The U.S. government also doesn't want a trade war with China,'' Chen Xingdong, chief China economist at BNP Paribas SA in Beijing. ``If that really happens, the losses for the Americans might not be lower than those for the Chinese.''

The yuan closed little changed at 7.6527 against the dollar in Shanghai from 7.6519 late yesterday, completing its second- biggest weekly gain since February. China has allowed the currency to rise 8.2 percent since abandoning a fixed link to the dollar in July 2005.
http://www.bloomberg.com/apps/news?pid=20601083&sid=aGdGZQPjavxw&refer=currency

 

[Ichiro]

25may-Treasuries Head for 3rd Weekly Decline on Signs of U.S. Growth

By Deborah Finestone and Annie Pinkert

May 25 (Bloomberg) -- Treasuries headed for a third week of declines as signs of recovering economic growth reduced bets the Federal Reserve will cut borrowing costs this year.

The notes briefly pared their losses after an industry report showed sales of previously owned homes in the U.S. fell in April to the lowest level in almost four years, dimming prospects for a quick recovery in housing.

http://www.bloomberg.com/apps/news?pid=20601009&sid=a2dk5EnZJQys&refer=bond

 

[Ichiro]

25may-Japan's Consumer-Price Declines Slow to 0.1% (Update6)

By Mayumi Otsuma

May 25 (Bloomberg) -- Japan's consumer prices fell at a slower pace in April, signaling gains may soon resume, making it easier for the central bank to raise interest rates.

Core prices, which exclude fresh food, declined 0.1 percent from a year earlier, the statistics bureau said today in Tokyo, matching economists' estimates. The measure of inflation fell 0.3 percent in March, the steepest drop in two years.

Rising prices would shore up support for the Bank of Japan's policy of increasing its 0.5 percent benchmark interest rate, the lowest among major economies. Governor Toshihiko Fukui said last week that the bank could raise rates even with prices falling to prevent excessive investment and sustain growth.

``The improvement of consumer prices certainly provides relief and gives the BOJ's arguments some conviction,'' said Eishi Yokoyama, an economist at AIG Global Investment Corp. in Tokyo. ``We're going to see more speculation among investors about an early rate hike.''

The yen traded at 121.34 per dollar at 4:58 p.m. in Tokyo from 121.41 before the report was published, and earlier climbed as high as 120.86. The yield on Japan's five-year note rose 3 basis points to 1.3 percent, the highest level in four months.

Fukui has said prices will rise again once the effect of a gain in oil prices last year fades. The bank needs to increase the key rate as the economy expands and inflation gathers pace, he said.

http://www.bloomberg.com/apps/news?pid=20601080&sid=ad1uXV8pcw_8&refer=asia