Asia energy scrips soar

GLOBAL MARKETS/ STOCK REPORT

Asian resources stocks rose, led by BHP Billiton, after oil prices climbed to a three-month high and Deutsche Bank increased its rating on CNOOC.

The Morgan Stanley Capital International Asia-Pacific Index was little changed at 145.96 as of 5:49 pm in Tokyo. A measure of energy stocks posted the biggest gain among 10 industry groups and was set to close at the highest since February 26.

Japan's Nikkei 225 Stock Average added 0.2 per cent, while the Topix index was little changed. Other markets in the region rose, except in Singapore, India, the Philippines and Sri Lanka.

China's Shanghai and Shenzhen 300 Index climbed 1.8 per cent, the most in the region, to a new high. China Minsheng Banking Corp and China United Telecommunications Corp led gains on speculation the government will allow foreign investors to buy another $6 billion of local-currency stocks.

BHP, the world's biggest mining company that gets a fifth of its sales from oil, gained 2.9 per cent to A$30.04. Woodside Petroleum, Australia's second-biggest oil producer, rose 3.4 per cent to A$38.23. PetroChina Co, China's largest oil explorer, rose 1.8 per cent to HK$8.94 in Hong Kong.

US
US stock and index futures were little changed before economic data which may provide a further indication of the state of the housing market. Standard & Poor's 500 Index futures expiring in June declined less than 0.1 per cent to 1446.50 at 11:45 am in London. Dow Jones Industrial Average futures were also down less than 0.1 per cent, at 12,562. Nasdaq 100 Index futures added 0.1 per cent to 1813.50.

Boeing retreated 17 cents to $90.81. Crude oil rose to the highest in three months, as Iran's detention of 15 British sailors and the United Nations' decision to tighten sanctions against the country heightened concern that West Asia supplies may be disrupted.

Europe
European commodity stocks advanced, led by Royal Dutch Shell, Total SA and BHP Billiton, as the price of oil and metals gained. Benchmarks in the region were little changed.

The Dow Jones Stoxx 600 Index rose 0.1 per cent to 376.17 as of 10:57 am in London. The Stoxx 50 declined 0.1 per cent. The Euro Stoxx 50, a measure for the 13 nations sharing the euro, fell 0.2 per cent. Stocks posted the biggest gain in four years last week as takeover speculation intensified in the automobile, utility and media industries.

National benchmarks fell in nine of the 18 western European markets. The UK's FTSE 100 added 0.1 per cent.

France's CAC 40 slid 0.2 per cent while Germany's DAX retreated 0.1 per cent.

Shell, the region's biggest oil company by market value, rose 1.5 per cent to 1,701 pence. Total, Europe's largest refiner, gained 0.7 per cent to 52.06 euros. OMV AG, Central Europe's biggest oil company, added 2.4 per cent to 47.05 euros.

Volkswagen dropped 4.8 per cent to 112.01 euros. Porsche, the world's most profitable carmaker, exercised an option today to raise its stake in Volkswagen to 30.9 per cent, triggering a requirement for a takeover bid as it tightens control over Europe's biggest carmaker.

Wimpey advanced 6.2 per cent to 674.5 pence after soaring as much as 19 per cent. The UK's third-largest builder by houses sold will hold 49 per cent of Taylor Wimpey and Taylor will own 51 per cent.

E.ON dropped 0.8 per cent to 99.91 euros. Germany's largest utility raised its takeover bid for Spanish power company Endesa by 3.2 per cent to 42.4 billion euros, or 40 euros a share, intensifying a takeover battle with Enel. E.ON first bid for the Spanish power company in February 2006.

Barclays fell 2 per cent to 742.5 pence. The UK's third-biggest bank's plan to buy ABN Amro Holding may fail to boost profits and offer few opportunities for savings, investors in the UK company said.