Weak yen lifts Asia scrips

GLOBAL MARKETS

Asian stocks gained, rebounding after a third straight weekly loss. Canon and Toyota Motor Corp led Japanese exporters higher after the yen weakened against the dollar.

The Morgan Stanley Capital International Asia-Pacific Index gained 0.8 per cent to 142.38 as of 7:40 pm in Tokyo. The gauge fell 4.5 per cent in the past three weeks.

Japan's Nikkei 225 Stock Average rose 1.6 per cent to 17,009.55 and the broader Topix added 1 per cent. NTT DoCoMo Inc and Takeda Pharmaceutical Co climbed as investors favoured shares of companies that pay higher dividends.

The Philippines Stock Exchange Index fell 0.7 per cent after the central bank said an interest rate cut is unlikely. Pakistan and Thailand were the only other regional markets to fall, while Indonesia was shut for a holiday.

Toyota, the world's largest automaker by value, added 0.8 per cent to 7,670 yen. It generated more than a third of its fiscal 2006 revenue in North America. Canon, the world's largest digital camera maker, rose 2.9 per cent to 6,440 yen. Sony Corp, the maker of the PlayStation 3 game console, rose 2.5 per cent to 6,150 yen.

Japan's currency dropped to 117.26 per dollar in Tokyo compared with 116.75 in late New York trading on March 16. The yen was at 155.88 per euro, the weakest since March 1, from 155.45.

US

US stocks rose as takeovers bolstered perceptions that equities remain inexpensive relative to earnings and traders increased bets that the Federal Reserve will cut interest rates.

Stocks rebounded from losses last week spurred by concerns bad loans for housing will curtail growth in other parts of the economy. Options traders are starting to say the central bank will cut interest rates this year to counter the effects of falling real-estate prices and moderating economic growth.

Europe

European stocks rebounded from the last week's losses on speculation ABN Amro Holding will be acquired and Imperial Tobacco group will raise its bid for Altadis. The Dow Jones Stoxx 600 Index climbed 0.9 per cent to 362.21 as of 2:08 pm in London. The Stoxx 50 added 0.9 per cent, and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 1 per cent. So far this year, mergers and acquisitions in Europe have totalled $290 billion, according to data compiled by Bloomberg.

European stocks dropped last week, resuming a sell-off that started last month, on concern US loan delinquencies may weigh on growth in the world's largest economy.

Barclays might offer about 60 billion euros ($79.8 billion) for the Amsterdam-based ABN Amro, according to Keefe, Bruyette & Woods analyst Jean-Pierre Lambert. ABN soared 9 per cent to 29.75 euros.

Barclays said it will make a statement "clarifying the position'' before business opens tomorrow. The stock added 0.4 per cent to 685 pence.

Bank shares had the second-largest gain among the 18 industry groups in the Stoxx 600, following travel stocks.

Lenders last week had their second-biggest decline this year as concern about loan delinquencies in the US escalated.

National benchmarks gained in all 18 western European markets except Luxembourg. The UK's FTSE 100 advanced 0.3 per cent, France's CAC 40 increased 0.7 per cent and Germany's DAX climbed 0.9 per cent.

Altadis surged 5.4 per cent to 46.11 euros. The maker of Cohiba cigars and Gauloises cigarettes rejected Imperial's first offer on March 16. Imperial spokesman Alex Parsons said the British company looks forward to further "friendly dialogue'' with Altadis, without elaborating.