Weak yen, strong oil

GLOBAL MARKETS

Asian stocks rose for a third day, driving benchmarks in China, Hong Kong and South Korea to records, as prices of metals and crude oil advanced and the yen weakened against the dollar.

Rio Tinto Group climbed, becoming the first to reach three figures since Australia's state-based stock exchanges merged in April 1987. Toyota Motor Corp gained on expectations a weaker yen will boost dollar-denominated sales. China's CSI 300 index surged 3.1 per cent, having taken less than two weeks to rebound from a rout that erased more than $400 billion of market value.

The Morgan Stanley Capital International Asia-Pacific Index added 1.3 per cent to 153.48 as of 7:08 p.m. in Tokyo, extending a two-day 1.4 per cent rally. Measures in Singapore, Indonesia, the Philippines and Pakistan also set new highs. Indexes rose around the region, except in India and Sri Lanka. Taiwan's market was closed for a holiday.

Europe

European stocks fell on speculation as gains last week were overdone given prospects for earnings growth. Rio Tinto Group and Telefonica SA led declines by mining and telephone stocks, which have outperformed the region so far this quarter.

Imperial Chemical Industries Plc surged 16 percent, sending the Dow Jones Stoxx 600 Chemicals Index to a record, after Akzo Nobel NV made an offer for the company.

Takeover speculation and evidence inflation in the US remains in check last week sent Europe's Dow Jones Stoxx 600 Index to its biggest gain since March 23. Deals in Europe have topped $1.2 trillion so far this year, compared with a record $1.6 trillion in 2006, based on data compiled by Bloomberg.

Pearson Plc fell after the Wall Street Journal said the company was in talks with General Electric Co. to make a joint offer for Dow Jones & Co. The Stoxx 600 lost 0.1 per cent to 398.9 as of 1:18 p.m. in London. The index climbed 3.7 percent last week. The Stoxx 50 also fell 0.1 per cent today, as did the Euro Stoxx 50, a measure for the nations sharing the euro.

US

US stock-index futures rose on takeover speculation, including a report that BHP Billiton may bid $40 billion for Alcoa Inc. US stocks rallied June 15 after a measure of consumer prices advanced less than economists estimated, easing concern interest rates will rise. Standard & Poor's 500 Index futures expiring in September gained 2.6 to 1550.30 at 7:56 a.m. in New York. Dow Jones Industrial Average futures increased 28 to 13,781. Nasdaq-100 Index futures slipped 0.25 to 1969.50.