N-deal lifts Asia scrips

GLOBAL MARKETS

Asian stocks rose to a record after North Korea agreed to end its nuclear-weapons programme in exchange for aid. Samsung Electronics Co, the world's largest chipmaker, had its biggest advance in almost two weeks.

"The agreement relieves some of the uneasiness about the political situation,'' said Michiya Tomita, who oversees about $264 million for Mitsubishi UFJ Asset Management Co in Tokyo.

The Morgan Stanley Capital International Asia-Pacific Index rose 0.8 per cent to 144.43 at 5:30 pm in Tokyo, an all-time high. Nine of the measure's 10 industry groups gained. Japan's Nikkei 225 Stock Average added 0.7 per cent to 17,752.64, while South Korea's Kospi index rose 1.3 per cent.

The Shanghai and Shenzhen 300 Index, which tracks yuan-denominated A shares listed on the two exchanges, rose 2.6 per cent.

North Korea agreed late yesterday with South Korea, the US, China, Japan and Russia to shut down its Yongbyon nuclear reactor within 60 days in exchange for energy aid. Implementation of the agreement would begin a month from now, said Christopher Hill, chief negotiator for the US.

US

US stock and index futures were little changed before Federal Reserve Chairman Ben S Bernanke's semi-annual testimony to Congress on economic growth and inflation.

"Bernanke will say he's keeping an eye on inflation and he's worried about it, particularly if the American consumer shows no real sign of throwing in the towel,'' said Stephen Pope, head of equity research at Cantor Fitzgerald in London. "But, at the moment, there aren't sufficient reasons to raise rates.''

Futures on the Standard & Poor's 500 Index expiring in March added 0.6 to 1450 at 9:36 am in London. Dow Jones Industrial Average futures rose 4 to 12,690. Nasdaq-100 Index futures increased 1 to 1797. US stocks yesterday snapped a three-day decline as takeover speculation boosted mining shares.

Europe

European stocks advanced for a second day as higher metal prices boosted commodity producers and investors bet on improved earnings in the manufacturing and technology industries.

The Stoxx 600 closed less than three points from its six-year high yesterday on speculation earnings growth will top analysts' expectations and takeovers will increase. Of the 22 Dow Jones Stoxx 50 members to report in the fourth-quarter, 59.1 per cent have beaten estimates.

The Dow Jones Stoxx 600 Index rose 0.3 per cent to 379.92 at 9:06 am in London. The Stoxx 50 advanced 0.2 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 0.3 per cent.