Asia scrips hit new high

GLOBAL MARKETS

Asian stocks advanced to a record, led by Japanese retailers and steelmakers, on speculation takeovers will increase in both industries.

The Morgan Stanley Capital International Asia-Pacific Index gained 0.2 per cent to 147.13 as of 7:36 pm in Tokyo. Japan's Nikkei 225 Stock Average added 0.4 per cent to 17,940.09, while the broader Topix index rose 0.3 per cent.

Measures also rose in Indonesia, India and Pakistan, while they fell in New Zealand, Thailand, the Philippines and Sri Lanka.

Thai stocks declined on concern violence will escalate in the country's southern provinces, undermining investor confidence, after explosions killed at least seven people. Markets were closed for the Lunar New Year holiday in China, Hong Kong, Malaysia, Singapore, South Korea and Taiwan.

Daimaru jumped 8.6 per cent to 1,825 yen, the most since November 4, 2005. Matsuzakaya, Japan's eighth-biggest department store operator, surged by the exchange-imposed daily limit of 10 per cent to 1,073.

"Mergers and capital tie-ups are options we are considering as part of realignments to survive,'' Daimaru spokesman Tadaharu Mizutani said in a telephone interview today.

The Nikkei newspaper had said the two retailers are in talks to combine their businesses, creating Japan's largest department store operator. Daimaru and Matsuzakaya disputed the report.

JFE, Japan's second-largest steelmaker, climbed 3.4 per cent to 7,410 yen, a record. Nippon Steel Corp, the nation's biggest, gained 3.7 per cent to 765 yen.

Steelmakers climbed last year partly on speculation a takeover by Mittal Steel Co, the world's largest maker of the alloy, of Arcelor would accelerate reorganisation in the industry globally.

Europe

European stocks climbed for the first time in three days as takeover speculation buoyed shares of European Aeronautic Defence and Space Co, DaimlerChrysler and J Sainsbury.

The Dow Jones Stoxx 600 Index rose 0.4 per cent to 382.24 as of 11:54 am in London, the highest since November 2000. The Stoxx 50 climbed 0.4 per cent, and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, added 0.6 per cent.

Markets are closed today in the US for a holiday.

The Stoxx 600 has gained every week except one in 2007, as investors bet companies will continue to seek acquisitions to boost earnings.

Announced takeover deals involving a European company jumped in 2006 to a record $1.48 trillion.

National benchmarks gained in all of the 17 western European markets that were open. France's CAC 40 rose 0.6 per cent. The UK FTSE added 0.5 per cent, as did Germany's DAX.

EADS advanced 2.3 per cent to 25.7 euros. Qatar's investment fund may buy as much as 10 per cent of Europe's largest aerospace company to diversify the emirate's holdings, the fund's chief executive said.

The state-owned Qatar Investment Authority had talks with EADS, the parent of Airbus, because the company is "under pressure'' and its shares may be undervalued after falling by a fifth over the last year, said Sheikh Hamad bin Jasim bin Jaber al-Thani, the authority's chief executive officer.

DaimlerChrysler climbed 3.6 per cent to 56.07 euros. JPMorgan will send out details regarding the potential sale of Chrysler unit to possible bidders within days, the Times said, without saying how it obtained the information.

Enterprise jumped 8.5 per cent to 576 pence after the Daily Telegraph said the UK provider of support services to utilities had agreed to a 486 million-pound ($949 million) takeover by private-equity firm 3i Group. Calls to Enterprise spokesman Nick Oborne and 3i spokeswoman Ingrid Tighe weren't immediately returned today.

Shares of Anglo Platinum, the world's largest platinum producer, jumped in Johannesburg on speculation that Anglo American will bid for the quarter of the company that it doesn't already own. Anglo American, the world's second-biggest mining company by sales, increased 2.6 per cent to 2,604 pence.