Asia pares gains in US

GLOBAL MARKETS/ STOCK REPORT

Asian stocks trading in the US fell for a third day on Monday, paring gains for the year, as falling metal and energy prices dragged down shares of commodity producers. BHP Billiton and Posco led the decline.

The Bank of New York's Asia ADR Index lost 0.1 per cent to 166.70. The index, which tracks American depositary receipts of the region's companies, rose 5.3 per cent in 2007, its smallest annual gain in five years.

BHP Billiton, Australia's biggest oil and gas producer, slipped 1.9 per cent to $70.04. Posco, Asia's third-biggest steelmaker, lost 2.5 per cent to $150.41.

Exporters Toyota Motor and Canon fell on concern that slowing US economic growth and a slumping housing market may reduce demand for their products.

A report from Washington-based Mortgage Insurance Companies of America showed the number of insured homeowners more than 60 days late on payments jumped last month.

Toyota, Japan's largest automaker, lost 0.4 per cent to $106.17. Canon, Japan's biggest office-equipment maker, slumped for a ninth day, losing 0.9 per cent to $45.83. EUROPE
European stocks fell on the last day of trading in 2007, leaving the Dow Jones Stoxx 600 Index on track for its first annual decline since 2002.

Mining companies Rio Tinto Group and Xstrata slumped with copper prices. Gaz de France, the operator of Europe's largest natural gas network, dropped after saying a lower-than- planned increase in gas rates will curb earnings. Game Group, the UK's largest video game retailer, rallied as it forecast profit will beat analysts' estimates.

The UK's FTSE 100 Index fell 0.5 per cent and France's CAC 40 dropped 0.4 per cent as of 12:09 pm in London.

"We remain cautious for stocks in 2008 even if we still expect positive economic growth," said Emmanuel Soupre, a fund manager at Neuflize Gestion in Paris.

"The question is, was 2007 the end of the bull market that started in 2003 or just a breather to gain more upside strength? The answer is not a clear one at this point.''

US
US stocks fell, paring their fifth straight annual advance, after signs of slowing economic growth sent shares of energy companies and miners lower.

Exxon Mobil and Freeport-McMoRan Copper & Gold led declines in energy and commodity producers, the year's best performing industries. Amazon.com and EBay slipped after holiday internet sales rose at the slowest pace on record.

The S&P 500 dropped 10.13 points, or 0.7 per cent, to 1,468.36, reducing its yearly gain to 3.5 per cent.

The Dow Jones Industrial Average lost 101.05 points, or 0.8 per cent, to 13,264.82. The Nasdaq Composite Index declined 22.18 points, or 0.8 per cent, to 2,652.28. Shares in Europe also fell.

Concern that credit market losses will curb bank lending and spur a recession sent the S&P 500 down 3.8 per cent in the fourth quarter, leaving it 6.2 per cent below its record close on October 9. The retreat was the first for any fourth quarter in seven years.

The S&P 500, a benchmark for companies with a median market value of $12.8 billion, has posted gains every year since 2002, advancing 67 per cent. The Dow average rose 6.4 per cent in 2007 and the Nasdaq Composite Index climbed 9.8 per cent, its biggest rally since 2003.