Japanese stocks fall

GLOBAL MARKETS

Asian stocks rose, paced by Taiwan's biggest companies after UBS raised its estimate for the nation's benchmark. Japanese stocks fell, led by insurers and power producers, after yesterday's earthquake.

Taiwan Cement and Cathay Financial Holding paced gains after the brokerage raised its 12-month estimate for the nation's Taiex index to 12,000. "The UBS report is a confidence booster and investors can buy industry leaders as a way to benefit in the bull market,'' said Phil Chen, who manages $154 million at Grand Cathay Securities Investment Trust in Taipei.

Millea Holdings, Japan's No 1 insurer by market value, declined after yesterday's 6.8 magnitude quake in northwest Japan that killed at least nine people and destroyed property. Tokyo Electric Power dropped as it was ordered to keep closed a damaged nuclear power plant that leaked contaminated water.

Europe

European stocks dropped for the first time in four days after analysts downgraded oil companies and a decline in copper prices pushed mining shares lower.

Repsol and Statoil paced a retreat in energy stocks after ING Groep recommended selling the shares. Anglo American and Antofagasta followed copper prices lower and BHP Billiton slid after Deutsche Bank downgraded shares of the world's biggest mining company, citing gains this year.

The Dow Jones Stoxx 600 Index lost 0.7 per cent to 396.97 in London as all 18 industry groups fell. The index has rallied 8.7 per cent this year, closing yesterday within 6 points of a record set in March 2000, even as concerns mount that losses in subprime mortgages and higher interest rates will erode earnings.

US

US stock-index futures retreated, before quarterly reports from Merrill Lynch, Wells Fargo and US Bancorp that may shed light on losses from mortgages to borrowers with poor or limited credit.

Shares of Merrill Lynch and Wells Fargo declined in Europe, as did those of Intel, the world's largest computer-chip maker, one of the three Dow Jones Industrial Average companies due to report earnings today. The other two, Johnson & Johnson, the biggest US health-products company, and Coca-Cola, the world's largest soft drink maker, gained.

The Standard and & Poor's 500 Index retreated yesterday for the first time in four days, led by oil producers and buffeted by a slump in financial shares on speculation of mounting losses in securities, backed by subprime mortgages.