Asia steel stocks rise

GLOBAL MARKETS

Asian steelmaker stocks rose, led by Nippon Steel Corp and Posco, on speculation more companies will get involved in mergers and acquisitions.

The Morgan Stanley Capital International Asia-Pacific Index lost less than 0.1 per cent to 146.90 as of 6:18 pm in Tokyo, after gaining 0.2 per cent. Japan's Topix index climbed 0.2 per cent, while the Nikkei 225 Stock Average was little changed.

The Philippine Stock Exchange Composite Index rose 1.4 per cent, the biggest gain in the region. Markets also rose in South Korea and Pakistan, while they fell in Australia, New Zealand, India and Indonesia. They were closed for the Lunar New Year holiday in China, Hong Kong, Malaysia, Singapore and Taiwan.

Japan's Nippon Steel, the world's second-largest maker of the alloy, rose 2.6 per cent to 785 yen, its highest since January 1990. JFE Holdings, the second biggest in Japan, added 1.5 per cent to 7,520 yen, a record. Sumitomo Metal Industries, Japan's No 3 steelmaker, jumped 4.2 per cent to 591 yen.

Nippon Steel raised its stake in Nakayama Steel Works to 8.73 per cent, from 6.63 per cent, according to a filing Nippon Steel made yesterday to the Tokyo Stock Exchange. The company has forged equity links with domestic rivals as well as with South Korea's Posco and an affiliate in Brazil.

US

US stock and index futures were little changed before a report this week that may show whether inflation slowed last month.

Standard & Poor's 500 Index futures expiring in March added 0.2 to 1459.1 of 9:34 am in London.

Dow Jones Industrial Average futures lost 2 to 12,785. Nasdaq-100 Index futures advanced 0.75 to 1828.00. Markets were closed yesterday for Presidents' Day.

The Dow average last week had its best advance in three months as takeover speculation and a statement from Federal Reserve Chairman Ben S Bernanke that inflation may be cooling boosted mining companies and banks.

Europe

European stocks fell from a six-year high after earnings at Clariant, the world's second-largest speciality chemicals maker, missed analysts' estimates and British bank Barclays said profit growth may slow at a unit.

The Dow Jones Stoxx 600 Index fell 0.1 per cent to 381.8 as of 9:06 am in London. The Stoxx 50 declined 0.1 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, lost 0.2 per cent.