North Korea booster

GLOBAL MARKETS

Asian stocks rose for a fifth day, led by Samsung Electronics Company and Kookmin Bank, after North Korean leader Kim Jong Il signaled he's ready to dismantle the country's nuclear programme.

South Korea's Kospi index climbed 1.8 per cent, the biggest gain in the region, after Kim said tensions are easing on the Korean peninsula, China's state-run news agency Xinhua reported.

"It's a significant long-term plus for the region since a geopolitical risk is receding,'' said Jo Dong Hyuk, who oversees $1.9 billion in global equities at Korea Investment Trust Management Co in Seoul.

"The direct beneficiary will be the Korean market as foreign investors may turn more positive.''

Nintendo Co paced gains among Asian exporters after a US government report showed factory orders fell less than forecast. BHP Billiton climbed after getting approval for a $1.7 billion oil-field project. Chinese Estates Holdings surged after saying it's in talks with investors who may offer to buy it.

EUROPE

European stocks advanced for a second day, led by hotel companies after Hilton Hotels Corporation of the US agreed to be acquired by Blackstone Group.

InterContinental Hotels Group, the owner of the Holiday Inn chain, and Accor, Europe's largest hotel company, surged, sending the Dow Jones Europe Stoxx 600 Travel & Leisure Index to its biggest gain in more than three months. Deutsche Telekom climbed after Credit Suisse Group raised its recommendation for the telecommunications industry.

"Takeovers will continue to drive equity markets,'' said Guenther Gerstenberger, a fund manager at Oberursel, Germany-based PEH Wertpapier, which oversees about $5.5 billion. "Private equity funds and companies have a lot of cash at hand.''

US

US stocks climbed 0.4 per cent yesterday in shortened trading as factory orders dropped less than forecast and $8.5 billion of takeovers spurred speculations of mergers and acquisitions, which will extend the rally. Markets in the U.S. are closed today for the July 4 holiday.

National benchmarks advanced in all of the 17 western European markets that were open.

The UK's FTSE 100 added 0.2 per cent. Germany's DAX and France's CAC 40 both rose 0.3 per cent.