Rally continues in Asia

GLOBAL MARKET

Shares in Asia's emerging markets rose for a second day after US Treasury Secretary Henry Paulson said global economic growth is "solid''.

China, Malaysia and the Philippines posted the region's biggest gains after JPMorgan Chase & Co raised estimates for key stock indexes. BHP Billiton led Australia's S&P/ASX 200 Index higher after the government reported that the economy grew twice as fast as economists forecast in the fourth quarter.

The Morgan Stanley Capital International Asia-Pacific Index added less than 0.1 per cent to 140.88 at 5:19 pm in Tokyo. The gauge yesterday rose 1.8 per cent, its first gain since a selloff that began on February 27 erased $3.3 trillion of market value globally.

The MSCI index of emerging market stocks yesterday rose for the first time in seven days. It gained 2.4 per cent, after falling 10 per cent in the previous five days. A measure of shares in developed countries added 1.4 per cent after sliding 6.1 per cent during the rout.

China's Shanghai and Shenzhen 300 Index rose 2.7 per cent, the Kuala Lumpur Composite Index gained 2.1 per cent and the Philippine Stock Exchange Index jumped 3 per cent. Adrian Mowat, JPMorgan's Hong Kong-based equity strategist, raised his 12-month forecasts for the Malaysia and Philippine benchmarks, according to a research note published today. He also raised his estimate for the Hang Seng China Enterprise Index, which tracks mainland stocks listed in Hong Kong.

US

US stock and index futures fell on speculation reports may show that growth in the world's largest economy is cooling off.

Standard & Poor's 500 Index futures expiring in March lost 1.2 to 1394.20 as of 10:11 am in London. Dow Jones Industrial Average futures fell 11 to 12,204. Nasdaq-100 Index futures slid 2.25 to 1742.75.

US stocks broke a week-long slump yesterday and posted their biggest gains since July after Treasury Secretary Henry Paulson eased concern that rising mortgage defaults will undermine the economy.

Europe

European stocks advanced for a second day after E.ON, Germany's largest utility, reported earnings that beat analysts' estimates and investors bet takeovers will increase in the retail and gaming industries.

The Dow Jones Stoxx 600 Index rebounded yesterday after losing 6.7 per cent in the previous five days, sending the index to its worst performance last week since March 2003. The Stoxx 600 added 0.4 per cent to 361.23 as of 9:55 am in London.

The Stoxx 50 advanced 0.1 per cent, and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, rose 0.3 per cent.

Asian stocks increased today, paced by mining companies, after metals prices climbed, while US stock and index futures were little changed.

National benchmarks advanced in all 17 western European markets that were open. France's CAC 40 and Germany's DAX both added 0.3 per cent, while the UK's FTSE 100 gained 0.1 per cent.

E.ON added 1.8 per cent to 98.48 euros. Fourth-quarter profit more than doubled to 2.43 billion euros ($3.19 billion) after it increased electricity prices to households in its home market. Profit of 2.02 billion euros was expected, according to a survey of six analysts.

Separately, E.ON dropped a demand yesterday that Endesa's shareholders change company bylaws to ease the takeover. That may result in Enel and other large Endesa investors being unable to form a voting majority, Expansion newspaper reported today.

Debenhams rose 4.9 per cent to 182.5 pence on speculation the retailer may receive a takeover approach.

Carrefour climbed 3.3 per cent to 55.67 euros. Groupe Arnault and Colony Capital said they bought a 9.8 per cent stake in the world's second-largest retailer.

Tesco, Britain's biggest retailer, gained 1.1 per cent to 435.5 pence.