Asian stocks laid low

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell. Nintendo and LG.Philips LCD led declines after US retail sales dropped for a third week, increasing concern that spending will weaken in the region's biggest export market.

Financial stocks, led by Kookmin Bank, gave up early gains, driving down the MSCI Asia Pacific Index. Banks had risen on speculation China's agreed stake purchase in Morgan Stanley signaled writedowns by US financial firms would be contained.

"Clearly, the US economy is in a bad situation," said Choi Min Jai, who helps manage the equivalent of $3.2 billion at KTB Asset Management in Seoul. "It's quite unlikely that the companies dependent on US spending will be able to lead the market upwards."

Asustek Computer and Delta Electronics paced declines in Taipei on speculation the central bank will raise interest rates for the 14th straight quarter, slowing economic growth.

The MSCI Asia Pacific index slid 1 per cent to 152 at 7:07 pm in Tokyo, declining for the seventh day, the longest losing streak since May 18, 2005. Half of the 10 industry groups on the benchmark fell and half rose.

EUROPE
European stocks rose for the first time in four days, led by automotive and technology companies, as investors speculated recent share-price losses were exaggerated.

Daimler AG, the world's largest truckmaker, and Volvo AB advanced after heavy-truck sales in the region rebounded last month. Cap Gemini, Europe's biggest computer-services company, and SAP led technology shares higher after earnings and forecasts at US rivals beat analysts' estimates.

The Dow Jones Stoxx 600 Index added 0.5 per cent to 360 at 9:27 am in London. The measure has lost 1.3 per cent this year and is down 9.9 per cent from a 6 1/2-year high reached on June 1 on concern that losses tied to US sub-prime mortgages will slow economic growth and hurt corporate earnings. Futures on the Standard & Poor's 500 Index rose 0.2 per cent to 1,467.90.

US
US stock-index futures rose after earnings and forecasts at Oracle, the world's largest maker of database software, and Accenture, the second-biggest management consulting company, topped analysts' estimates.

Oracle advanced in Europe. Chief Executive Officer Larry Ellison said the company is shielded from an economic slump. Accenture climbed in extended US trading. Bear Stearns, the second-largest US underwriter of bonds backed by mortgages, gained before reporting earnings.

Standard and Poor's 500 Index futures expiring in March added 1.9 points to 1,466.8 at 10:26 am in London.

Dow Jones Industrial Average futures rose 12 points to 13,310. Nasdaq-100 Index futures climbed 5.25 points to 2,062.5.

Oracle's forecast provides "a strong signal for the whole technology industry," said Karim Bertoni, who helps manage about $24.8 billion at Banque Syz & Co. in Geneva. "After some difficult years Oracle is finally reaping the fruit of an acquisition process."