Asia at two-week high

GLOBAL MARKETS/ STOCK REPORT

Asian stocks rose, sending the region's benchmark to a two-week high, as concern eased that banks will report more subprime-related losses and after higher metals prices boosted natural-resources companies.

Bank of China led gains in Hong Kong after saying it has set aside enough money to cover its subprime-related investments.

BHP Billiton and Rio Tinto Group climbed after Rio said it's seeking a bigger price increase for its iron ore from steelmakers than the 65 per cent obtained by a rival.

"For Bank of China, investors may be taking those comments by the bank about its sub-prime exposure as reassuring,'' said Mark Tan, who helps oversee about $3 billion in Asian equities at UOB Asset Management in Singapore. "Iron ore producers are definitely in a very good position to obtain price increases."

The MSCI Asia Pacific Index gained 1.6 per cent to 146.17 at 7:26 pm in Tokyo, headed for its highest close since February 5. Nine of its 10 industry groups rose. All of Asia's benchmarks open for trading advanced on Tuesday.

Japan's Nikkei 225 Stock Average added 0.9 per cent to 13,757.91.

Europe
European stocks fell, led by banks as writedowns at Credit Suisse Group and price-estimate cuts at Sanford C. Bernstein & Co. reignited speculation financial firms will post more losses tied to the collapse of sub-prime mortgages.

Credit Suisse, the second-biggest Swiss bank, tumbled the most in five years in Zurich after saying it wrote down asset-backed securities by $2.85 billion, while lenders slid across the region after The Dow Jones Stoxx 600 Index lost 1 per cent to 320.46 as of 10:51 am in London, as three stocks fell for every one that rose.

National benchmarks fell in all of the 18 western European markets except Denmark. The U.K.'s FTSE 100 lost 0.6 per cent as did Germany's DAX. France's CAC 40 retreated 0.9 per cent.

The Stoxx 50 decreased 1 per cent, while the Euro Stoxx 50, a measure for the euro region, slipped 0.9 per cent. All of the 18 industry groups in the Stoxx 600 slid.

US
US stock-index futures advanced as investors speculated that Wal-Mart Stores and Hewlett-Packard would report higher earnings and UBS recommended shares of US Steel Corporation.

Wal-Mart, the world's biggest retailer, and Hewlett- Packard, the largest maker of personal computers, rose in Europe.

Standard & Poor's 500 Index futures expiring in March added 6.9 points to 1,358.2 as of 10:26 am in London.

Dow Jones Industrial Average futures gained 72 points to 12,422 and Nasdaq 100 Index futures increased 16.5 to 1,803. The US market was closed for Presidents' Day yesterday.