US jobs data spur stocks

GLOBAL MARKETS

Asian stocks rose to a record after a pickup in US hiring stoked optimism the world's biggest economy will avoid a recession. China's CSI 300 Index advanced to a new high, paced by China Vanke Co, on speculation a strengthening yuan will boost overseas demand for local-currency assets such as property.

The data "points to a soft landing in the US, which is the best scenario that investors could hope for,'' said Leslie Phang, who helps manage $1 billion at Commonwealth Private Bank in Singapore. "We're seeing a very favorable market outlook. If global economies continue to perform alright, Asian companies will do very well.''

The Morgan Stanley Capital International Asia-Pacific excluding Japan Index added 0.4 per cent to 550.09 as of 6:27 pm in Hong Kong, exceeding its October 2 record close of 549.66. The CSI 300 Index rose 1.3 per cent on this month's first day of trading in China. Pakistan's Karachi Stock Exchange 100 Index climbed to a new high after President Pervez Musharraf won an election and benchmarks in Australia and the Philippines also set records. Hong Kong's Hang Seng Index closed 0.2 per cent lower, after earlier surging 2.3 per cent.

Europe

European chemical stocks advanced, paced by BASF AG and Lonza Group AG, as crude oil fell for a second day.

The Dow Jones Stoxx 600 Index was little changed at 387.03 as of 11:28 am in London. The index climbed 2.4 per cent last week, the fourth consecutive advance, as a better-than-expected jobs report in the US and earnings from investment banks fueled speculation the worst of the market turmoil may be over.

National benchmarks fell in eight of the 18 western European markets. France's CAC 40 was little changed. Germany's DAX and the UK's FTSE 100 fell 0.1 per cent. The Stoxx 50 dropped 0.3 per cent, and the Euro Stoxx 50, a measure for the euro region, retreated 0.2 per cent.

US

US stock-index futures fell before companies start to report third-quarter profits that may show the slowest growth rate in more than five years.

Standard & Poor's 500 Index futures expiring in December lost 4.4 to 1,566.3 at 11:41 am in London. Dow average futures slipped 25 to 14,131. Nasdaq-100 Index futures decreased 4.75 to 2,166. The S&P 500 rallied to a record at the end of last week, after a report showed hiring beat forecasts.

Third-quarter earnings of S&P 500 members may rise an average of 3.2 per cent from a year earlier, breaking a 20-quarter streak of gains exceeding 10 per cent, according to data compiled by Bloomberg as of September 28.

General Electric lost 8 cents to $41.69 in Germany. The company is scheduled to report earnings on October 12.

Expedia dropped 83 cents to $34.21 in Germany after Citigroup lowered its recommendation for the shares to "hold'' from ``buy.''

"Our high-risk rating on Expedia reflects the highly competitive landscape the company faces, several other sector- and company-specific risks, as well as uncertainty associated with a new management team,'' Citigroup wrote in a report to investors dated Oct. 5.

Shares of Yum! Brands added 3 cents to $34.38 in Germany. The owner of Pizza Hut and KFC restaurants is expected to report quarterly profit excluding some items of 45 cents, according to the average analyst estimate in a Bloomberg survey.

Alcoa shares were little changed in Germany after rising 24 cents to $39.03 in earlier trade. The world's second- largest aluminum company said it secured a $3.25 billion credit facility to be used for general corporate purposes.

Separately, the company is scheduled to post results tomorrow. Alcoa's quarterly report is traditionally considered to be the start of the earnings season.