Asian markets surge

GLOBAL MARKETS/ STOCK REPORT

Asian stocks rose the most in six weeks, led by Newcrest Mining and Jiangxi Copper, after gold led the spurt in metals prices.

Mitsui & Co and Mitsubishi Corp, Japan's two largest trading companies, advanced as crude oil climbed for a second day.

Takeda Pharmaceutical led drugmakers higher as investors sought shares least affected by an economic slowdown, driving a gauge of health-care companies to its biggest gain in four months.

"The boom on commodities has provided investors an excuse for buying into metal shares, which are one of the market favorites now,'' said Lu Yizhen, who helps manage about $640 million at Citic-Prudential Fund Management in Shanghai.

The MSCI Asia Pacific Index climbed 1.3 per cent to 155 as of 6 pm in Tokyo, erasing earlier losses of as much as 0.7 per cent. The benchmark was set for its biggest advance since November 29. Japan's Nikkei 225 Stock Average increased 0.5 per cent to 14,599.

Most Asian stock indexes gained, rebounding from earlier losses, after The Wall Street Journal reported the U.S. is contemplating a $500 tax rebate for all Americans and incentives for companies to invest in machinery.

EUROPE
European stocks dropped to the lowest in more than a year, led by retailers and phone companies, after sales at Marks & Spencer Group missed analysts' estimates and AT&T of the US said customer spending weakened.

Marks & Spencer, the UK's largest clothing retailer, plunged 19 per cent. Tesco, Next and Carphone Warehouse Group also tumbled in the biggest selloff in retail stocks since September 11, 2001. Deutsche Telekom AG and BT Group led telephone companies lower.

The Dow Jones Stoxx 600 Index lost 1.3 per cent to 348.87 at 9:19 am in London, the lowest since October 2006. The gauge has retreated 4.4 per cent so far this year on concern credit market losses and an economic slowdown will damp profit growth.

National benchmarks dropped in all 17 western European markets that were open. The UK's FTSE 100 sank 1.2 per cent, while Germany's DAX fell 0.5 per cent. France's CAC 40 lost 0.9 per cent.

US
US stock-index futures climbed as gold jumped to a record, boosting commodity shares. Alcoa, the world's third-largest maker of aluminum, advanced in Europe before reporting earnings.

Newmont Mining Corp, the world's second-biggest gold producer, also gained. Bear Stearns increased as James "Jimmy" Cayne handed over the chief executive officer role to his hand-picked successor.

Standard and Poor's 500 Index futures expiring in March added 4.10 points to 1,401.1 as of 10:47 am in London. Dow Jones Industrial Average futures increased 35 to 12,686. Nasdaq-100 Index futures rose 4.25 to 1,932.75.

"Commodity stocks have the potential to hold up," said Simon Clinch, who helps oversee $4 billion at F&C Asset Management in London. "I wouldn't say recession is a given yet. There are unknowns out there "" Federal Reserve and government action "" that would mitigate that.''