Asian comeback

GLOBAL MARKETS

Asian stocks rose for a second day, led by raw-materials producers, amid growing confidence the US economy will withstand a rout in credit markets.

Aluminum Corp of China jumped after reporting earnings that beat analyst estimates and BHP Billiton had its best two-day gain in almost six years. Hong Kong Exchanges & Clearing surged after China's government said yesterday it will allow some individual investors to buy shares listed in Hong Kong.

The Morgan Stanley Capital International Asia-Pacific Index climbed 1.2 per cent to 144.36 at 6:48 p.m. in Tokyo, bringing its two-day advance to 5.3 per cent. .

Japan's Nikkei 225 Stock Average climbed 1.1 per cent to 15,901.34 and China's CSI 300 Index rose 1.8 per cent to a record. The Philippines, which was shut yesterday for a holiday, had its biggest gain since former president Joseph Estrada was ousted from power in January 2001.

Europe

European stocks fell on revived concern the mortgage rout is spreading and will dent global economic and profit growth. BNP Paribas SA, France's largest bank, and Goldman Sachs Group Inc, the world's most profitable securities firm, declined in Europe. Toll Brothers Inc, the largest US luxury-home builder, dropped in German trading after Bank of America Corp recommended investors sell the stock.

The Dow Jones Stoxx 600 Index lost 0.9 per cent to 359.18, and Standard & Poor's 500 Index futures expiring in September sank 6.7 to 1,442.4 as of 8:23 a.m. in New York. The Stoxx 600 is down 10 per cent since reaching a 6 1/2-year high on June 1 on concern that defaults among US borrowers with the poorest credit profiles may spill over to other markets.

National benchmarks fell in all of the 17 western European markets that were open except Austria, Denmark and Luxembourg. The UK's FTSE 100 sank 0.2 per cent. France's CAC 40 lost 0.4 per cent and Germany's DAX slipped 0.3 per cent.

US

US stock-index futures dropped after Capital One Financial Corp shut its GreenPoint Mortgage unit and cut its profit forecast, sparking concern difficulties in the credit markets are worsening. Capital One, the largest independent US credit card issuer fell in extended trading yesterday. Citigroup Inc, the country's biggest bank by assets, and JPMorgan Chase & Co, the third-largest, declined in Europe.

Exxon Mobil Corp, the world's biggest oil company, retreated as oil prices dropped for a second day.

Retail, mining and railroad shares sent most US stocks to their third day of advances yesterday on growing confidence the Federal Reserve will ease the liquidity crunch and keep the economy growing.

Standard & Poor's 500 Index futures expiring in September lost 3.9 to 1,445.2 as of 11:20 a.m. in London. Dow Jones Industrial Average futures fell 33 to 13,116 and Nasdaq 100 Index futures declined 4.25 to 1,893.5.