Hang Seng on a high

GLOBAL MARKETS/ STOCK REPORT

Asian stocks advanced, driving Hong Kong's Hang Seng Index above 27,000 for the first time, on speculation the US will cut interest rates and China will award new mobile-phone licenses.

China Telecom Corp, the nation's biggest fixed-line phone company, gained the most in nine months on a report that the country's telecom industry will come under review.

Mizuho Financial Group climbed after a bigger-than-forecast drop in US durable goods orders prompted traders to increase bets the Federal Reserve will lower borrowing costs.

"By cutting interest rates, you get cheaper money and investors' best bet is to place it on Asia as the region is a growth engine,'' said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management in Kuala Lumpur.

Samsung Electronics rose on a report that South Korean consumers are the most upbeat in five years. China Mobile gained on speculation funds will flow to Hong Kong from China.

Europe
Stocks in Europe climbed on speculation that a US home sales report on Thursday will give the Federal Reserve more room to cut interest rates.

Royal DSM NV gained in Europe after the world's biggest maker of vitamins raised its profit forecast for this year and announced a share buyback. Nordea Bank AB surged after Dagens Industri reported SEB AB plans to buy the Swedish state's 19.9 per cent stake in the bank. Bed Bath & Beyond Inc. rose in German trading.

The Morgan Stanley Capital International World Index added 0.7 per cent to 1,627.13, while S&P 500 futures rose 0.3 per cent to 1,541.4 as of 10:43 am in London.

US
US stock-index futures followed Asian and European markets higher as investors speculated economic reports due on Thursday will give the Federal Reserve more cause to keep lowering interest rates.

"Any sign of weakness will be interpreted as a reason to cut interest rates further,'' said Klaus Hagedorn, who manages the equivalent of about $850 million at Metzler Investment GmbH in Frankfurt.

Bed Bath & Beyond climbed in Europe after the largest US home-furnishings retailer's earnings exceeded analysts' estimates. Exxon Mobil Corp and Chevron Corp led an advance of oil stocks as crude oil rose for a second day in New York.

Standard & Poor's 500 Index futures expiring in December gained 7.5 to 1,543.70 as of 9:35 am in London. Dow Jones Industrial Average futures climbed 61 to 14,019. Nasdaq-100 Index futures rose 11.25 to 2,120.75.