Nikkei hits 7-year high

GLOBAL MARKETS

Asian stocks rose, driving the Nikkei 225 Stock Average to a seven-year high, on signs that economic growth in Japan and South Korea is accelerating. keynotes gained after a government report showed that machinery orders in Japan rose more than forecast in May. Samsung Electronics led the Kospi index, the world's fourth-best performer this month, to a fourth straight high after the commerce ministry raised its forecast for South Korean exports.

High Tech Computer paced Taiwan's Taiex index to a sixth day of gains ahead of trade data that showed that exports climbed more than economists expected. Singapore's Straits Times Index advanced the most in 11 weeks, led by DBS Group Holdings, on expectations that the government will say that economic growth accelerated in the second quarter from the previous three months.

"The whole region is seeing a lot of positive economic news,'' said Leslie Phang, who helps manage $1 billion at the Commonwealth Private Bank in Singapore. "We're still bullish, and in this market we're looking to buy the laggards.''

Europe

European stocks climbed for a second day as takeover speculation lifted food and beverage shares and a higher profit forecast from Telekom Austria sparked a rally in telephone companies. Royal Numico jumped to the highest in six years on speculation that Europe's biggest baby-food maker may receive a takeover bid. Telekom Austria, the largest Austrian phone operator, surged the most in more than two months. BHP Billiton paced an advance by mining companies after a strike in Chile sent copper prices higher.

Europe's Dow Jones Stoxx 600 Index gained 0.3 per cent to 398.54 in London. The index has climbed for two straight weeks on speculation that companies will withstand rising interest rates and mergers will continue to buoy shares.

US

US stock-index futures rose before Alcoa announces earnings today, on speculation that the growth in companies' second-quarter profits will beat analyst estimates. Alcoa shares gained in Europe. Boeing climbed after reports that it had received orders for its 787 Dreamliner, unveiled yesterday. Alnylam Pharmaceuticals soared as Roche Holding, the world's biggest maker of cancer medicines, agreed to buy the rights to its therapeutic technology for up to $1 billion.

US stocks climbed July 6. The S&P 500 posted its biggest weekly advance since April, helped by takeovers and signs that economic growth is accelerating.

Analysts expect S&P 500 companies to post 4.8 per cent profit growth for the second- quarter, according to data compiled by Bloomberg.

Their earnings grew 10.3 per cent in the first quarter, higher than estimated.