HK leads Asia upsurge

GLOBAL MARKETS

Asian stocks climbed, led by Hong Kong's biggest advance in 10 months after China's government said it will let banks buy shares outside the mainland for the first time.

China Mobile and Jiangxi Copper Co paced gains on speculation Chinese companies whose shares trade in Hong Kong will benefit from the rule change. All 10 industry groups on the Morgan Stanley Capital International Asia-Pacific Index advanced. The MSCI Index added 0.9 per cent to 149.82 at 7:20pm in Tokyo, ending a two-day, 1.1 per cent slide. Hong Kong's Hang Seng Index surged 2.5 per cent to a high, its largest gain since June 30, as shares worth $12.2 billion changed hands, a record.

Benchmarks also reached new highs in China, South Korea and Singapore, and gained elsewhere, except in Taiwan, Pakistan and Sri Lanka. Japan's Nikkei 225 Stock Average added 0.7 per cent to 17,677.94. Markets were close in the Philippines for mid-term elections.

Europe

European stocks fell as a drop in copper prices pushed mining shares lower and bond yields at a five-year high weighed on banks. Rio Tinto Group and Antofagasta Plc led a decline in commodity producers. Atos Origin SA slumped after it ended talks about a possible sale. Auto shares limited losses after DaimlerChrysler AG said it sold its unprofitable Chrysler unit.

The Dow Jones Stoxx 600 Index decreased 0.2 per cent to 389.05 as of 11:45am in London. The Stoxx 50 retreated 0.2 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, was little changed. National benchmarks declined in 9 of 18 markets in western Europe. France's CAC 40 slid 0.2 per cent. Germany's DAX climbed 0.1 per cent. The U.K.'s FTSE 100 slipped 0.3 per cent.

Copper fell in London on speculation that imports of the metal into China, the world's largest user, probably dropped last month as domestic stockpiles jumped. Nickel and zinc also fell.

US

US stock-index futures were little changed as some investors speculated earnings growth doesn't justify gains in benchmark indexes. Wal-Mart Stores, the world's largest retailer, retreated in Europe before reporting earnings tomorrow. Shares of Agilent Technologies, the world's biggest maker of scientific-testing equipment, also retreated.

Standard & Poor's 500 Index futures expiring in June lost 0.50 to 1511.70 as of 10:54am in London. Dow Jones Industrial Average futures retreated 1 to 13,378. Nasdaq-100 Index futures rose 0.25 to 1910.75.