Asia snaps 7-week rally

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell from a seven-week high, with benchmarks in Australia and South Korea retreating from records. BHP Billiton and China Life Insurance Co, drivers of the recent rally, led declines.

Japan's Nikkei 225 Stock Average and the broader Topix index both lost 0.6 per cent. Declines were limited after Goldman, Sachs & Co raised its ratings on Tokyo Electron and Nikon Corp, pushing shares of semiconductor-equipment makers higher.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.1 per cent to 147.69 as of 7:11 pm in Tokyo. The measure earlier gained as much as 0.6 per cent to 148.63, just shy of the record close of 148.69 set February 27.

About two stocks fell for each that gained among the index's 1,067 constituents.

Key indexes in China and Singapore extended records, while Philippine stocks posted the biggest gains in the region after overseas workers sent more money home. Concern that currency appreciation will hurt exporters contributed to declines in India and South Korea.

The 14-day relative strength index for measures in Malaysia and South Korea yesterday climbed above 70, the level that indicates to some analysts that prices are set to fall. The reading for Australia's benchmark was at 67.

US
US stock and index futures advanced after government data showed inflation and the housing slump are easing and earnings beat analysts' estimates.

Standard & Poor's 500 Index futures expiring in June added 4.2 to 1479.6 as of 9:18 am in New York. Dow Jones Industrial Average futures gained 24 to 12,793. Nasdaq-100 Index futures jumped 4.25 to 1852.5.

Coca-Cola added 74 cents to $51.01. Sales of no-calorie Coca-Cola Zero helped the world's largest soft-drink maker post first-quarter profit, excluding some expenses, of 56 cents a share. Analysts were expecting 53 cents, according to the average estimate compiled by Bloomberg.

Europe
European stocks rebounded after a measure of prices paid by US consumers rose less than forecast last month, giving the Federal Reserve more leeway to cut interest rates to spur the economy.

The Dow Jones Stoxx 600 Index rose 0.1 per cent to 388.06 at 2 pm in London after earlier dropping 0.6 per cent The Stoxx 50 added 0.2 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, advanced 0.1 per cent.

National benchmarks fell in 11 of 18 western European markets. Germany's DAX gained 0.2 per cent and France's CAC 40 advanced 0.1 per cent.

UK's FTSE 100 Index fell 0.4 per cent after inflation accelerated to its fastest in a decade.

Vodafone, the world's largest mobile-phone company, climbed 1.3 per cent to 141.4 pence. The company last year generated almost half of its revenue in the US.

DaimlerChrysler, the world's fifth-biggest carmaker, gained 0.4 per cent to 61.21 euros, rebounding from a 1 per cent decline earlier. Tesco rose 1.4 per cent to 462 pence. The supermarket operator's second-half profit increased 18 per cent after expanding stores and selling more flat-screen televisions.