Asia climbs to 2-week high

GLOBAL MARKETS

Stocks advanced in Europe for a seventh day and Asian markets climbed to the highest in two weeks as concern eased that losses from subprime loans will slow economic growth in the US.

DaimlerChrysler AG, the world's second-biggest maker of luxury cars, consumer-electronics company Royal Philips Electronics NV and BNP Paribas SA paced the gains in Europe.

ThyssenKrupp AG led steel companies higher after US Steel Corporation bid for Stelco of Canada. Honda Motor Co and Hon Hai Precision Industry Co rose in Asia.

Europe's Dow Jones Stoxx 600 Index added 0.3 per cent to 371.51 at 10:55 a.m. in London.

The index is headed for its longest consecutive advance in five months after the Federal Reserve cut its discount rate on August 17. The Morgan Stanley Capital International Asia-Pacific Index added 1.1 per cent to 149.87 today, set for its highest close since August 9.

Futures on the Standard & Poor's 500 Index fell today. The yen rose, snapping a three-day slide against the dollar and the euro, on speculation Japanese exporters bought the currency to settle month-end accounts. European bonds and US Treasuries fell.

National benchmarks advanced in all of the 16 western European markets that were open except Norway and Sweden. Germany's DAX gained 0.2 per cent, and France's CAC 40 added 0.7 per cent. UK markets were closed for a public holiday.

US

US stock-index futures declined before a home-sales report today that may show the worst housing recession in 16 years continues, weighing down economic growth.

Toll Brothers, the largest US luxury-home builder, fell in Europe.

Shares of Caterpillar Inc and General Electric Co, whose earnings are sensitive to the pace of economic growth, also slipped.

Standard & Poor's 500 Index futures expiring in September fell 4 to 1,479.6 as of 10:29 a.m. in London. Dow Jones Industrial Average futures lost 26 to 13,381 and Nasdaq 100 Index futures slipped 5.25 to 1,964.25.

US stocks rose on August 24 after reports showed better-than-forecast sales of new homes and durable goods orders.

A report on existing-home sales is likely to indicate the housing recession that triggered a credit-market squeeze will drag on.