Asian Stocks Rise, Gold Falls

Asian shares climbed on Tuesday, and the dollar held its gains, after JPMorgan raised its bid for Bear Stearns and U.S. home sales rose unexpectedly, lifting expectations for a recovery in the U.S. housing and credit markets.

Japanese government bond futures retreated, pulling away from last week's five-year highs, after U.S. Treasuries slid on tentative hopes the world's top economy would weather the credit crisis. Financial stocks, from Seoul's Kookmin Bank, to Australia's Babcock & Brown, rang up big gains after JP Morgan Chase & Co's sweetened offer for Bear Stearns signaled there was more value in financial assets than previously thought.

MSCI's index of shares outside Asia rose 1.9 percent by 0150 GMT, the third day of gains, although the benchmark is still down around 16 percent this year. Japan's Nikkei index ended the morning 1.3 percent better as Canon Inc and other exporters climbed as the yen traded well below a near 13-year high posted last week against the dollar, easing some concern about earnings outlooks. Seoul's KOSPI added 1.1 percent, Australia's S&P/ASX 200 rose 3 percent, and Singapore's Straits Times climbed 1.9 percent.

In the currency markets, the dollar crept up to 100.76 yen, holding near the previous session's highs hit after data showed that sales of existing U.S. home sales rose in February for the first time since July. The dollar had plunged to as low as 95.77 yen last week, its lowest since 1995, amid the Federal Reserve's aggressive efforts to ease the credit crisis.

Oil fell more than $1 to below $100 a barrel, extending a 10 percent fall from last week's record, sent down by a buildup in U.S. crude stocks, concerns over slower energy demand and a recovering dollar. Gold dropped and held near its lowest in a month, with its appeal as a hedge against inflation weakened by a firming U.S. dollar and sliding crude oil prices. Gold fell to $920.40/921.20 an ounce, and was within sight of last week's one-month low of $904.65 an ounce.

Source: Reuters

American Markets Bounce Back

U.S. stocks jumped on Monday after a raised buyout offer for Bear Stearns Cos Inc suggested that financial stocks may have reached bottom, especially in light of fresh data that fueled hopes for a turnaround in housing.

Stocks rang up big gains for a second straight session after JPMorgan Chase & Co lifted its offer for Bear Stearns to $10 a share from $2, helping alleviate concerns that other investment banking shares could tumble. JPMorgan's move also relieved worry that a prolonged fight with disgruntled shareholders could have derailed the deal.

Financial stocks also got a boost from an article in the Barron's newspaper suggesting that downtrodden bank stocks could rebound by 10 percent to 20 percent by year end. Bear Stearns shares, which at their session high were more than doubled their Thursday's closing price, ended up 76.1 percent. Citigroup, the largest U.S. bank by assets, was among financial sector standouts in the S&P 500, with its shares up 3.5 percent, while shares of American Express Co, a credit card and travel services company, led the Dow's financials with a 3.1 percent gain.

A surprising increase in sales of pre-owned homes last month fueled optimism that the worst of the housing slump may have passed. That ignited a rally in home building shares.

The Dow Jones industrial average climbed 187.32 points, or 1.52 percent, to finish at 12,548.64. The Standard & Poor's 500 Index ended up 20.37 points, or 1.53 percent, at 1,349.88. The Nasdaq Composite Index shot up 68.64 points, or 3.04 percent, to close at 2,326.75. Monday's gains, coming after a three-day Easter weekend, helped Wall Street notch its first back-to-back advance for March and its biggest 2-day jump in almost 4 months. The S&P 500 achieved its highest close for the month, and with this advance, the benchmark index trimmed its drop from its October record closing high to a decline of 13.1 percent.

Source: Reuters

Japan Inches Up As Yen Stabilizes

Japanese stocks inched higher on Monday, extending a three-day winning streak, as gains in automakers such as Toyota Motor Co helped offset declines in recent gainers such as insurers on a stabilising yen.

Takahiko Murai, general manager of equities at Nozomi Securities said the market generally lacks trading factors as U.S. markets were closed on Friday for Easter, as was most of Europe, which will also stay shut on Monday. "On top of that, we're approaching the Japanese corporate earnings season, and the market is unlikely to move much until then."

As of 0045 GMT, the benchmark Nikkei average was up 0.2 per cent or 28.94 points at 12,511.51. The Nikkei ended up 1.8 per cent at 12,482.57 on Friday, gaining 2 per cent for the holiday-shortened week. Murai said investors largely shrugged off a government survey that showed big Japanese manufacturers' confidence in business conditions sank to a new low in the three months to March.

The dollar steadied against the yen around 99.80 yen, staying well above a 13-year low struck last week thanks to a series of aggressive efforts by the Federal Reserve to ease the credit crisis.

Source: Sify

Asian Markets Flat

Asian markets opened flat but on a slightly negative note on Wednesday, as crude oil declined from a record high and Japanese steelmakers declined after a report showing that the country`s capital spending declined for a third consecutive quarter. Australia`s third largest oil and gas explorer, Santos lost the most among energy shares. The world`s second-biggest steelmaker, Nippon Steel, declined on Japan`s economic growth concern.

Japanese benchmark index Nikkei declined 27.87 points, or 0.21%, China`s Shanghai Composite fell 33.60 points, or 0.78%, while the Singapore`s Straits Times declined marginally 0.42 points, or 0.01%. Hong Kong`s index Hang Seng rose 16.23 points, or 0.07%, and South Korea`s KOSPI rose 2.04 points, or 0.12%.

Source: Myiris

Dow Ends Lower, Nasdaq Flat

The Dow and S&P 500 fell on Tuesday as bank stocks slid on a broker warning about more losses at Citigroup and the Federal Reserve chairman said mortgage delinquencies and foreclosures were likely to rise. But the Nasdaq ended little changed after Cisco Systems Inc's chief executive said he expects the economy's problems to be short-lived, easing concerns about the impact of slower growth on business spending. The day got off to a rough start after Merrill Lynch & Co forecast a $15 billion loss at Citigroup Inc, sparking a 4.3 per cent slide in its shares and pushing the S&P financial index down to a fourth straight day of losses. The Dow Jones industrial average fell 45.10 points, or 0.37 per cent, to 12,213.80. The Standard & Poor's 500 Index dropped 4.59 points, or 0.34 per cent, to 1,326.75. But the Nasdaq Composite Index inched up 1.68 points, or 0.07 per cent, to 2,260.28.

After spending most of the day in the red following a reduced profit margin forecast from Intel Corp, the Nasdaq edged higher as reassuring comments from networking equipment maker Cisco eased worries about tech spending.

Even so, concerns about the financial sector's outlook dominated, causing shares of Citigroup, the largest U.S. bank when ranked by assets, to finish down 4.3 per cent at $22.10 on the New York Stock Exchange. CNBC television reported that a deal to rescue ailing bond insurer Ambac Financial Group was near, pushing the company's shares up nearly 8 per cent and helping the broader market cut losses during the session's last hour.

In a speech in Florida, Federal Reserve Chairman Ben Bernanke said more declines in house prices could be expected. The housing slump has had a damping effect on consumer confidence and spending, which is a strong element of economic growth. Fed Vice Chairman Donald Kohn told a hearing of the Senate Banking Committee that U.S. banks should consider slashing dividends to ease the strain on balance sheets laden with bad debts. Also hurting financials was Wachovia's reduction of its earnings estimates on four U.S. investment banks, including Bear Stearns Co Inc, saying the first quarter for investment banks would be one of the worst in several years.

Source: Sify

Asian Markets Mixed

Asian markets were mixed Tuesday, with Australian stocks extending losses on financials such as Australia & New Zealand Banking Group ahead of an expected interest rate hike by the central bank, while Hong Kong stocks rebounded on HSBC Holdings after it reported earnings growth.

Japanese shares turned volatile, with the benchmark Nikkei swinging between negative and positive territories, as a decline in banks such as Mizuho Financial Group was countered by bargain buying in exporters such as Honda Motor Co.

Australia's S&P/ASX 200 dropped 0.8% to 5,364.90, taking its losses into the fourth straight session, with financial sector shares pacing losses.

Elsewhere in the region, the Nikkei 225 Average rose 0.3% to 13,025.06. The average fell as low as 12,883.07 earlier in the day, after tumbling 4.5% in the previous session. The broader Topix index gained 0.3% to 1,275.45.

In Hong Kong, the Hang Seng Index rose 1.1% to 23,854.32, while the Hang Seng China Enterprises index gained 1% at 13,575.34.

China's Shanghai Composite advanced 0.1% to 4,442.52 and New Zealand's NZX 50 index declined 1.3% to 3,537.72, while South Korea's Kospi added 0.2% at 1,674.36. Singapore's Straits Times Index climbed 0.3% to 2,936.54, Taiwan's Weighted index gained 1.6% at 8,398.69 and Malaysia's KLSE Composite dropped 0.5% to 1,323.53.

In currency trading, the U.S. dollar was quoted at 103.39 yen. The greenback bought 103.51 yen late in New York, after falling as low as 102.59 earlier in the session.

Dow and S&P Flat

The Dow and the S&P 500 ended little changed on Monday as soaring commodity prices lifted Alcoa and Exxon Mobil, offsetting fears of more fallout from the housing slump, while the Nasdaq fell after brokers cut their price targets on Apple.

The surge in the prices of gold, oil, platinum and silver prompted investors to buy the shares of natural resources companies, including Alcoa Inc, which ended up 3.2 per cent at $38.32, and Exxon Mobil Corp, up nearly 1 per cent at $87.75.

But financial shares took a beating after Thornburg Mortgage Inc, a high-profile mortgage lender, said it does not have enough cash to meet its creditors' demands, driving its stock down 51.5 per cent to $4.32 on concerns it might file for bankruptcy. The lender's woes troubled investors since it specializes in jumbo mortgages considered among the less risky home loans.

Souring profit expectations also hurt bank shares, pulling Citigroup Inc down 2.6 per cent and Bank of America Corp down 1.4 per cent. An Oppenheimer and Co. analyst cut earnings-per-share estimates on three U.S. brokers.

Apple Inc dropped 2.6 per cent to $121.73, weighing on the Nasdaq, after RBC Capital Markets and Banc of America Securities cut their price targets on the stock of the iPhone and iPod maker.

The Dow Jones industrial average ended down 7.49 points, or 0.06 per cent, at 12,258.90. The Standard & Poor's 500 Index rose 0.71 of a point, or 0.05 per cent, to close at 1,331.34. The Nasdaq Composite Index slipped 12.88 points, or 0.57 per cent, to finish at 2,258.60. Billionaire investor Warren Buffett's comments that a recession was already under way also rattled investors, and contributed to declines among other economically sensitive sectors, including the shares of home builders. Market breadth in regular trading was overly negative, with decliners outpacing advancers on both the NYSE and the Nasdaq. More stocks hit fresh 52-week lows than new highs, reflecting a broadly bearish tone.

Boeing Co was the biggest drag on the Dow after the defense contractor and plane maker lost a multibillion-dollar U.S. Air Force contract to competitors. Boeing shares fell 2.6 per cent to $80.67 on the New York Stock Exchange. After the closing bell, shares of Barnes & Noble dropped 5 per cent to $26.90 after the top U.S. bookseller said 2008 could be "an especially challenging retail year."