Asia up after hiatus

GLOBAL MARKETS/ STOCK REPORT

Asian stocks rose, led by the biggest rally in Taiwan in six weeks, after Ma Ying-jeou's presidential election victory boosted prospects of improved trade with China.

Taiwan Semiconductor Manufacturing Co, the world's largest custom-chip maker, and Cathay Financial Holding surged. Nissan Motor, Japan's third-biggest carmaker, paced gains among automakers after forecasting higher sales.

China's benchmark CSI 300 Index tumbled 4.5 per cent, led by Citic Securities, as speculation waned that the government would take steps to bolster the stock market.

"It's a very positive outcome for Taiwan and the region because trade will expand," said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer, which manages $350 billion in assets worldwide.

"Overall, the win provides a stabilising factor for politics in Asia."

The MSCI Asia Pacific Index added 0.3 per cent to 136.32 as of 6:18 pm in Tokyo, gaining for a second day. Half of the index's 10 industry groups advanced. The Standard & Poor's 500 Index futures contract rose 0.3 per cent.

Taiwan's Taiex index surged 4 per cent, the most since February 14, extending last week's 4.5 per cent increase. Japan's Topix index gained 0.3 per cent to 1,224.15. Markets in Hong Kong, Australia and New Zealand were shut for holidays. All major European markets were also closed for holidays.

US
US stock-index futures advanced, indicating shares may extend the biggest rally in almost two months on speculation that JPMorgan Chase would increase its bid for Bear Stearns.

Bear Stearns, which almost collapsed before the Federal Reserve helped broker a deal, surged after the New York Times said JPMorgan may raise its offer to $10 a share.

June futures on the Standard & Poor's 500 Index rose 0.4 per cent to 1,330.1 at 7:04 am in New York. Dow Jones Industrial Average contracts climbed 0.5 per cent to 12,385, while Nasdaq-100 Index futures gained 0.4 per cent to 1,756.75.

US stocks posted their largest gain last week since the five-day period ended February 1 after the Federal Reserve injected more cash into the banking system and Wall Street's largest securities firms reported earnings that topped estimates.

Bear Stearns jumped 64 per cent to $9.79 in trading before the official open of US exchanges. JPMorgan's current bid is valued at $2.52.

The original offer, more than 90 per cent lower than the securities firm's market value at the start of the month, drew opposition from shareholders led by UK billionaire Joseph Lewis.