Asia bounces high

GLOBAL MARKETS/ STOCK REPORT

Asian stocks rose from the worst decline in two weeks, led by technology companies, on speculation computer chipmakers will raise prices.

Elpida Memory, Japan's largest computer-memory maker, surged for a second day after its chief executive said the company will increase prices by 20 per cent this month.

Stocks pared gains after the freeze in global credit markets caused UBS AG to report a first-quarter loss of $12 billion and Deutsche Bank AG to book $3.9 billion of writedowns for the period.

The MSCI Asia Pacific Index added 0.4 per cent to 139.83 as of 5:47 pm in Tokyo, paring an earlier climb of 1.1 per cent. The measure lost 12 per cent in the first quarter, the worst start to a year since 1992, as a US housing slump threatened to drag the largest market for Asian goods into a recession.

Japan's Nikkei 225 Stock Average added 1 per cent to 12,656.42.

EUROPE
European stock-index futures slipped after UBS, the region's largest bank, reported a second consecutive quarterly loss on an additional $19 billion of writedowns.

Deutsche Bank, Germany's biggest, may retreat after saying it sees more writedowns. Heidelberger Druckmaschinen may drop after the world's largest maker of printing machines said it won't reach its annual forecast. Unilever might gain after Deutsche Bank advised investors to buy the shares.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, fell 16, or 0.5 per cent, to 3,533 at 7:42 am in London.

The Stoxx 600 yesterday capped its worst first quarter since at least 1987 on concern an economic slowdown and credit-market losses will curb profit growth. The index is down 16 per cent this year.

US
US stock-index futures rose as investors speculated financial firms may get closer to the end of losses related to the collapse of subprime mortgages.

JPMorgan Chase, the third-largest US bank, and Merrill Lynch climbed in Germany. UBS, Europe's biggest bank, rallied the most in a week on speculation an additional $19 billion in writedowns may indicate a turning point.

Cell Genesys increased after it formed a partnership with Takeda Pharmaceutical to develop and market its experimental prostate cancer treatment.

Standard & Poor's 500 Index futures expiring in June added 5.1 to 1,329.1 at 9:55 am in London. Dow Jones Industrial Average futures climbed 46 to 12,303. Nasdaq-100 Index futures gained 9.75 to 1,800.25. Asian and European equities rallied.

UBS said on Tuesday it will seek to raise 15 billion Swiss francs ($15 billion) in a rights offer to replenish capital and forecast a first-quarter loss of 12 billion francs.