Asia breaks losing streak

GLOBAL MARKETS/ STOCK REPORT

Asian stocks advanced for the first time in three days, led by BHP Billiton and Inpex Holdings on speculation gains in metals prices will help commodities producers withstand global growth.

BHP gained after copper prices rose to a three-month high.

Inpex, Japan's largest oil and gas explorer, jumped the most in five months after raising its profit forecast.

"Commodities demand is holding up quite well and we still prefer the resources and energy-related sectors," said Beat Lenherr, chief global strategist at LGT Capital Management.

The MSCI Asia Pacific Index added 0.3 per cent to 139.67 at 7:25 pm in Tokyo, reversing an earlier drop of 0.4 per cent and snapping a two-day, 2 per cent decline.

All Asian benchmarks gained apart from Taiwan and India.

The Topix index fell 0.1 per cent in Japan, where markets were closed yesterday.

Hong Kong's Hang Seng Index added 1.4 per cent, ending a three-day, 9.7 per cent tumble. China's stock markets were shut for the final day of the weeklong Lunar New Year holidays. EUROPE
European stock-index futures advanced, following gains in US and Asian equities. BHP Billiton and Rio Tinto Group will probably follow metals prices higher.

Societe Generale may rally after UBS recommended buying shares in the French company that last month reported the worst trading loss in banking history. Sanofi-Aventis, France's largest drugmaker, may increase after profit beat analysts' estimates.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 36 points, or 1 per cent, to 3,730 at 7:42 am in London.

US
US stock-index futures dropped on concerns that further credit-related losses and slowing economic growth will curb corporate profits.

General Motors, the world's biggest automaker, and Applied Materials declined in Europe before reporting earnings.

Standard & Poor's 500 Index futures expiring in March fell 1.80 points to 1,336.4 as of 10:17 am in London. Dow Jones Industrial Average futures decreased 15 points to 12,223. Nasdaq-100 futures dropped 3 to 1,794.25.

Stocks gained yesterday as a rally in oil prices boosted energy shares, outweighing concern that financial companies face more writedowns after AIG said it understated losses in some assets.