Bond ratings boost Asia

GLOBAL MARKETS/ STOCK REPORT

Asian stocks advanced, led by financial companies, after the world's largest bond insurers retained top credit ratings, easing concern that global economic growth will slow on new credit losses.

National Australia Bank climbed after Standard & Poor's kept MBIA and Ambac Financial Group's AAA debt ratings. Sun Hung Kai Properties led gains in Hong Kong on speculation the city's record budget surplus will prompt the government to waive property taxes.

``It's a temporary boost for Asia,'' said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management Bhd. S&P's move ``has prevented a snowballing effect that would have dragged down banks'' globally.

The MSCI Asia Pacific Index added 0.4 per cent to 146.02 as of 7:20 pm in Tokyo, trimming earlier gains of 1 per cent. Advances on Tuesday helped reduce the benchmark's 2008 loss to 7.4 per cent.

Japan's Nikkei 225 Stock Average slipped 0.7 per cent to 13,824.72, reversing an earlier advance of 1 per cent. Australia's S&P/ASX 200 rose 0.8 per cent, led by Woolworths, after the nation's biggest retailer reported increased profit. EUROPE
European stock-index futures advanced, following gains in US and Asian markets, after the biggest US bond insurers retained their top debt ratings, easing concern credit losses will curb earnings.

UBS, Europe's biggest bank, and ING Groep may rise. Suez will probably climb after reporting profit that beat analysts' estimates. ThyssenKrupp, Germany's largest steelmaker, might gain after Credit Suisse Group lifted its price forecast.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 19 points, or 0.5 per cent, to 3,828 at 7:31 am in London.

US
US stock-index futures advanced as an unexpected rise in German business confidence outweighed concern that slowing US consumer spending and higher inflation will drag down the global economy.

MBIA, the world's biggest bond insurer, and Ambac Financial Group gained in Europe as they increased efforts to avoid credit-rating downgrades. Home Depot fell before the largest home-improvement retailer reports fourth-quarter earnings.

Standard & Poor's 500 Index futures expiring in March rose 3 points to 1,374.6 at 10:23 am in London. Dow Jones Industrial Average futures added 25 points to 12,591. Nasdaq-100 Index futures climbed 9.50 points to 1,795.