Fed meet spreads cheer

Asian stocks rose, led by Nintendo Co and BHP Billiton, after the Federal Reserve eased concern the US, the region's biggest export market, is heading for a recession.

"The Fed minutes have reassured investors that global markets should remain stable for the next couple of months," said Jason Chong, who helps manage $600 million at UOB-OSK Asset Management in Kuala Lumpur. "I'm comforted by the Fed's proactive stance."

The gauge of 1,056 companies added 0.5 per cent to 167.75 as of 4:46 p.m. in Tokyo, set for a second consecutive record close. Japan's Nikkei 225 Stock Average gained 0.1 per cent to 17,177.89, while the broader Topix lost 0.1 per cent, one of three indexes to decline in the region with New Zealand and Singapore. Markets in Taiwan and Pakistan were closed for holidays.

Hong Kong's Hang Seng Index advanced to a new high, led by China Mobile, after Chief Executive Donald Tsang said the government will cut tax rates on corporate profits and salaries.

Europe

European stocks advanced for a second day, following gains in US and Asian markets, after minutes from the Federal Reserve quelled concern the world's biggest economy is heading for a recession.

The Dow Jones Stoxx 600 Index lost 0.1 per cent to 387.64 as of 10:52 a.m. in London. The measure has rallied 10 per cent since touching a five-month low on August 16.

National benchmarks rose in nine of 17 western European markets that were open. France's CAC 40 slid 0.3 per cent, while Germany's DAX added 0.1 per cent. The UK's FTSE 100 fell 0.4 per cent. The Stoxx 50 and the Euro Stoxx 50, a measure for the euro region, retreated 0.1 per cent.

US

US stock-index futures retreated on concern third-quarter earnings reports may show the economic slowdown is reducing profits.

International Paper Co, the world's biggest forest-products maker, dropped in Europe after the company posted earnings that missed analysts' estimates. Alcoa Inc, the second-largest aluminum company, was little changed after kicking off the earnings season with a report that fell short of projections.

Standard & Poor's 500 Index futures expiring in December lost 3.2 to 1,573 as of 10:51 a.m. in London. Dow Jones Industrial Average futures retreated 23 to 14,214 and Nasdaq 100 Index futures decreased 4.50 to 2,189.75.

"Earnings have been mixed," said Clemence Bounaix, an analyst at Richelieu Finance in Paris, which oversees $5 billion. "There are elements in the reports that show the economic slowdown in the US is significant."

US stock indexes yesterday rallied to records after minutes from the Federal Reserve allayed investor concerns that the economy is heading for a recession.

The economy will grow at an annual rate of 1.8 per cent in the fourth quarter, 0.4 percentage point less than forecast last month, according to the median of 71 analysts participating in Bloomberg News's monthly survey.