This just in...Asia markets rebound and U.S Futures turn positive on Citigroup's deal talk with U.S government with government taking a larger equity stake in Citigroup through common share ownership (40 percent).
Asia Stocks Rise, Erasing Earlier Declines, on Citigroup Report
http://www.bloomberg.com/apps/news?pid=20601087&sid=auE35pAayCxs&refer=home
By Shani Raja
Feb. 23 (Bloomberg) -- Asian stocks rose, led by technology and finance companies, on speculation the U.S. government will raise its stake in Citigroup Inc. to ease the global financial crisis and revive economic growth.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, gained 0.7 percent in Tokyo after the Wall Street Journal reported that the U.S. may take a stake of as much as 40 percent of Citigroup’s common stock. Samsung Electronics Co., the world’s largest memory-chip maker, gained 2.7 percent in Seoul.
BlueScope, Australia’s largest steelmaker, tumbled 7.7 percent after saying it may have a loss this half.
The
MSCI Asia Pacific Index gained 1.1 percent to 76.86 at 11:46 a.m. in Tokyo, having earlier fallen 1.1 percent. The gauge lost 14 percent this year as the worsening economic slowdown hurt corporate profits.
Japan’s
Nikkei 225 Stock Average lost 0.2 percent to 7,398.84. Toshiba Corp., Japan’s biggest chipmaker, slumped 7.8 percent after the Yomiuri newspaper reported the company is considering raising funds to strengthen its finances. Australia’s
S&P/ASX 200 Index fell 1.3 percent.
Futures on the U.S. Standard & Poor’s 500 Index rallied 1.2 percent today following the Citigroup report. The gauge dropped 1.1 percent on Feb. 20. Citigroup Inc. and Bank of America Corp. tumbled as Senator
Christopher Dodd, chairman of the Banking Committee, said it may be necessary to nationalize some banks for “a short time.”
To contact the reporter for this story:
Shani Raja in Sydney at
sraja4@bloomberg.net.