Asia scrips at new high

GLOBAL MARKETS

Asian stocks rose for a fifth day, set for this month's best close. Taiwan Semiconductor Manufacturing Co and Rinker group, the largest supplier of cement blocks in the US, led gains among exporters after the US reported a bigger-than-expected increase in housing starts, easing concern a property slump will derail expansion in the world's largest economy.

The Morgan Stanley Capital International Asia-Pacific, excluding Japan's index, climbed 0.4 per cent to 400.50 as of 4:03 pm in Hong Kong. That's the highest close since February 27, when the biggest drop in China's shares in a decade sparked a five-day rout that erased $3.3 trillion of market value globally.

Japan's markets were shut today for the vernal equinox holiday, while benchmarks for China's two exchanges set new highs. The Shanghai Composite Index climbed 0.8 per cent to 3,057.38 and the Shenzhen Composite added 1.4 per cent. Benchmarks also slid in Pakistan and Thailand, while elsewhere in the region they advanced.

Taiwan Semiconductor, the world's No 1 maker of customised chips, rose 0.7 per cent to NT$69.70. Rinker, which makes more than 80 per cent of its sales in the US, climbed 0.9 per cent to A$18.01.

US

US stock and index futures were little changed, as investors speculated Federal Reserve Chairman Ben S Bernanke may signal concern that economic growth is slowing while policymakers leave interest rates on hold.

Futures recouped earlier losses after Morgan Stanley, the world's second-largest securities firm by market value, reported earnings that beat analysts' estimates. The stock rose in pre-market US trading.

Standard & Poor's 500 Index futures expiring in June were unchanged at 1423.40 at 12:12 pm in London. Dow Jones Industrial Average futures decreased 1 to 12,384. Nasdaq-100 Index futures gained 3 to 1795.25.

Europe

European stocks rose for a fifth day on speculation mergers and acquisitions will increase. British Airways, Iberia Lineas Aereas de Espana and Nutreco Holding climbed as investors bet they will be takeover targets. The Dow Jones Stoxx 600 Index climbed 0.4 per cent to 368.55 as of 12:36 pm in London. The Stoxx 50 added 0.3 per cent and Euro Stoxx 50, a measure for the 13 nations sharing the euro, increased 0.2 per cent.

So far this year, mergers and acquisitions in Europe have totalled $323 billion, according to data compiled by Bloomberg. Deals reached a record $1.4 trillion in 2006.

National benchmarks advanced in all 18 western European markets. The UK's FTSE 100 added 0.5 per cent. France's CAC 40 rose 0.1 per cent and Germany's DAX increased 0.2 per cent.

British Airways, Europe's third-largest airline, advanced 2.5 per cent to 515.5 pence on expectations it may receive a bid from Emirates, the largest Arab airline.

Laura Goodes, a spokeswoman at British Airways, said the company never comments on market speculation. Tim Clark, president of Emirates, denied interest in buying British Airways and said the takeover talk was "very surprising''.

Nutreco, the world's biggest salmon-feed producer, surged 5 per cent to 54.65 euros. The company may be a target for a takeover backed by London-based buyout firm Permira Advisers.