Bullish on exports

GLOBAL MARKETS

Asian stocks rose, lifting a regional benchmark to a record, on signs of increasing demand for exports, metals and crude oil.

Honda Motor Company and Samsung Electronics Co led gains after reports showed that the pace of manufacturing in the US and Europe is accelerating. BHP Billiton, the world's biggest mining company and Australia's No 1 oil explorer, advanced to an all-time high.

"The manufacturing numbers gave the market the whiff of assurance it was looking for,'' said Leslie Phang, who helps manage $1 billion at the Commonwealth Private Bank in Singapore.

"Things are chugging along nicely.''

Wesfarmers, Australia's biggest home-improvement chain, fell after it agreed to buy retailer Coles Group for A$19.6 billion ($16.8 billion). New orders at some of South Korea's largest shipyards lifted shares of Hyundai Heavy Industries Co

The Morgan Stanley Capital International Asia-Pacific Index added 0.6 per cent to 155.54 in Tokyo, extending a three-day, 2.4 per cent rally. Indexes in Hong Kong, India, Indonesia and the Philippines also rose to records, while Thailand's SET Index climbed 2.6 per cent to the highest in more than a decade.

Europe

European stocks gained after brokerages raised their estimates for equities in the region and Kraft Foods's bid for Groupe Danone's biscuit unit fanned takeover speculation.

MAN advanced after Goldman, Sachs & Co added shares of Europe's third-largest truck-maker to its "conviction buy'' list.

Nokia, the world's biggest maker of handsets, and German engineering company Siemens gained after banks increased price estimates for the stocks. Danone rose to the highest in more than four months.

Deutsche Bank, Germany's biggest bank, said the Dow Jones Stoxx 600 Index will reach a record high by the end of this year as earnings growth and takeovers continue to support shares.

US

US stock-index futures gained on speculation that a home-sales report today will show the housing market is recovering.

Citigroup, the biggest US bank, led gains by Dow Jones Industrial Average stocks trading in Europe. Apple rose after technology-industry research company ISuppli Corp said the new iPhone sells for more than double production costs.

The Standard & Poor's 500 Index has dropped 1.3 per cent since reaching a record high June 4 on concerns that the housing slump may persist and defaults on subprime loans might increase.

A report on pending homes sales today may show a gain for the first time in three months.

"If we see some good numbers, that will give support to the market,'' said Jonathan Monk, who oversees $1.3 billion in US equities at Aerion Fund Management in London.