Asian stocks advance

GLOBAL MARKETS/ STOCK REPORT

BHP Billiton, the world's largest mining company, rose to a two-week high in Sydney. Tokyo Electric Power led power producers higher as oil dropped from a record, easing concerns higher fuel costs will hurt profit.

Sumitomo Mitsui Financial Group, Japan's second-biggest bank by market value, climbed as Lehman Brothers Holdings's chief executive officer declared "confidence'' in the value of its mortgage assets.

The MSCI Asia Pacific Index added 0.4 per cent to 143.53 as of 7:19 pm in Tokyo, with utilities and materials producers accounting for 36 per cent of the gain.

Japan's Nikkei 225 Stock Average closed little changed at 14,348.37. Benchmarks declined in half of Asia's markets. China's CSI 300 Index dropped for a 10th day, down by more than 50 per cent from its October peak.

MSCI's Asian index has fallen 9 per cent this year as financial companies worldwide declared $392 billion of writedowns and losses tied to mortgage investments in the US.

China's CSI 300 Index tumbled 3.7 per cent amid concern government measures to curb inflation will hurt earnings.

Europe
Stocks rose in Europe and US futures gained as higher metals prices buoyed mining shares and investors increased bets the Federal Reserve will keep borrowing costs on hold next week.

The MSCI World Index added 0.4 per cent to 1,473.51 at 12:08 p.m. in London as all 10 industry groups increased. The index has lost 7.3 per cent this year on speculation credit-related losses approaching $400 billion, rising oil prices and higher inflation will push the US into recession.

Futures on the Standard & Poor's 500 Index rose 0.5 percent before reports on housing and inflation that may add to speculation the Fed will delay raising interest rates.

Europe's Dow Jones Stoxx 600 Index advanced 0.8 per cent.

US
Most US stocks rose for a third day on Monday as Lehman Brothers Holdings's results fueled a rally in financial companies and analysts recommend buying shares of Apple.

The Standard & Poor's 500 Index gained 0.11 point, or less than 0.1 per cent, to 1,360.14. The Dow decreased 38.27, or 0.3 per cent, to 12,269.08. The Nasdaq Composite Index added 20.28, or 0.8 per cent, to 2,474.78. Five stocks gained for every three that fell on the New York Stock Exchange.