Asia on 8-week high

GLOBAL MARKETS/ STOCK REPORT

Asian stocks advanced to an eight-week high as a jump in metals prices boosted commodity producers BHP Billiton and Jiangxi Copper Co.

BHP, the world's largest mining company, rose to a record and Jiangxi Copper climbed the most in three weeks amid speculation a bigger-than-expected interest-rate cut in the US will buoy global economic growth, increasing demand for metals. South Korea's Hyundai Heavy Industries Co gained after posting 20 per cent higher sales.

"Investors can be relatively confident about buying steelmaker and commodity-related stocks," said Yasuhiko Hirakawa, who helps manage the equivalent of $80 billion at DLIBJ Asset Management Co. in Tokyo. "Strong demand for their products is supported by growth in emerging nations."

Posco gained after receiving a $350 million order to build India's biggest blast furnace. China Mobile climbed after adding a near record number of subscribers.

The Morgan Stanley Capital International Asia-Pacific Index advanced 0.9 per cent to 156.04 at 7:16 p.m. in Tokyo, set for its highest close since July 26. Materials producers posted the biggest gain among the benchmark's 10 industry groups.

Europe, US
European stocks fell for the first time in three days, led by banks, after Deutsche Bank AG said it will write down the value of leveraged loans and abandon hiring plans. US index futures retreated.

Deutsche Bank shares dropped the most in more than a month. Societe Generale SA, France's second-biggest bank, and UBS AG of Switzerland also declined. BT Group Plc, Britain's largest phone company, fell after Morgan Stanley downgraded the shares.

Northern Rock Plc tumbled 17 per cent after the UK Treasury said it won't guarantee deposits set up from on Thursday at the lender. Goldman Sachs Group Inc paced a decline by the US banks in Europe.

The Dow Jones Stoxx 600 Index sank 0.9 per cent to 374.20, while Standard & Poor's 500 Index futures lost 0.4 per cent to 1,535.7 as of 11:13 a.m. in London.

The Stoxx 600 gained 4.2 per cent in the previous two days as earnings from Lehman Brothers Holdings Inc. and a larger-than-expected interest rate cut by the Federal Reserve eased concern the US economy will falter.

"It's quite normal that investors take some profits after the good run we had in the past two days," said Herbert Perus, who helps oversee the equivalent of $57 billion as head of global equities at Raiffeisen Capital Management in Vienna. "There's a bumpy road ahead."