M&As spur Asian stocks

GLOBAL MARKETS

Asian stocks rose to an all-time high, led by mining companies and steelmakers, on expectations this year's record pace of takeovers will be sustained.

Rio Tinto Group, the world's third-largest mining company, surged to a record on speculation it's the target of BHP Billiton Sumitomo Metal Industries, Japan's No. 3 steelmaker, climbed after the Financial Times said Arcelor Mittal may offer about $4.5 billion for US-based AK Steel Corp.

Proposed global mergers and acquisitions jumped to $1.9 trillion this year, 58 per cent ahead of 2006's record pace. Suggestions of further takeovers helped lift the Morgan Stanley Capital International Asia-Pacific Index on speculation there will be more reorganization in the region.

China's foreign-currency B shares gained 6.9 per cent to a record in Shanghai, after soaring 17 per cent in the past two trading days, as their discount to yuan-denominated A shares drew local investors. MSCI's regional index advanced 0.6 per cent to 150.02 at 7.12pm in Tokyo, an all-time high.

US

US stock-index futures were little changed before today's Federal Reserve meeting on interest rates. Investors will be looking for indications that Chairman Ben S Bernanke will cut interest rates any time soon.

Cisco Systems fell in Europe after the company's quarterly sales forecast missed analysts' estimates for the first time in a year.

International Business Machines Corp. gained. Standard & Poor's 500 Index futures expiring in June declined 0.5 to 1511.7 as of 10:35 a.m. in London.

Dow Jones Industrial Average futures fell 10 to 13,336. Nasdaq 100 Index futures decreased 2.5 to 1903.

Europe

European stocks advanced, led by mining companies, on speculation Rio Tinto Group will receive a bid from larger rival BHP Billiton.

BNP Paribas pushed banks higher after the French company's earnings topped analyst estimates.

Carlsberg A/S rose the most in a year after the brewer unexpectedly posted a first-quarter profit. The Dow Jones Stoxx 600 Index rose 0.1 per cent to 390.26 at 10:40am in London. The Stoxx 50 climbed 0.3 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, added 0.2 per cent.

National benchmarks gained in 12 of 18 western European markets except Iceland. Germany's DAX, France's CAC 40 and the UK's FTSE-100 all added 0.2 per cent.