US retail sales boost

GLOBAL MARKETS

Asian stocks rebounded from a two-week low after US retail sales rose more than expected and the Federal Reserve said the world's biggest economy is growing without stoking inflation.

Toyota Motor Corp and Samsung Electronics Co led exporters higher as the Fed's comments damped speculation the US will raise interest rates. Nippon Steel Corp gained after saying it will increase its stake in Osaka-based Godo Steel.

China's CSI 300 Index fell after Premier Wen Jiabao said monetary policy needs a "moderate tightening". Lotte Shopping Co paced South Korea's Kospi index to a new high as Vice Finance Minister Chin Dong Soo said the nation's economic recovery will spur employment.

The Morgan Stanley Capital International Asia-Pacific Index added 0.8 per cent to 150.72 as of 7:11 p.m. in Tokyo, ending a two-day, 0.9 per cent decline sparked by a gain in bond yields. The Philippines benchmark also rose to a record as indexes climbed, except in New Zealand, Pakistan and Sri Lanka.

Europe

Stocks advanced for a second day, led by exporters and mining companies, after concern diminished that interest rates will keep rising and metal prices rebounded in London.

Michelin & Cie and Siemens AG led an advance by companies that make at least 20 per cent of their sales in the US. Rio Tinto Group, the world's third-biggest mining company, climbed to a record.

The Dow Jones Stoxx 600 Index added 1 per cent to 391.91 as of 11:15 a.m. in London. The index has lost 2.1 per cent since closing at a 6 1/2-year high on June 1 after the European Central Bank raised rates and bond yields rose. The Stoxx 50 also rose 1 per cent today, as did the Euro Stoxx 50, a measure for the 13 nations sharing the euro.

National benchmarks rose in all 17 western European markets that were open. Germany's DAX added 1.4 per cent. France's CAC 40 and the UK's FTSE 100 both rose 1 per cent.

US

US stock-index futures were little changed before a government report on producer prices that may show the pace of inflation is picking up.

Goldman Sachs Group Inc shares fell in Europe before the world's most profitable investment bank reports earnings.

Standard & Poor's 500 Index futures expiring in September added 0.8 to 1531 at 10:45 a.m. in London. Dow Jones Industrial Average futures increased 15 to 13,620. Nasdaq-100 Index futures advanced 4.50 to 1942.