Asian stocks extend gains

GLOBAL MARKETS/ STOCK REPORT

BHP Billiton, the world's biggest mining company, rose to a two-week high in Sydney. Mitsubishi Estate and Japan's largest developers climbed. China Petroleum & Chemical advanced after comments from the nation's top economic planning body bolstered speculation that the government will raise fuel prices.

The MSCI Asia Pacific Index rose 0.5 per cent to 144.29 as of 4:42 pm in Tokyo. Japan's Nikkei 225 Stock Average added 0.7 per cent to 14,452.82. Most benchmark indices in Asia advanced. China's CSI 300 Index climbed for the first time in 11 days.

Europe
European stocks fell after J Sainsbury reported slowing sales and brokerages downgraded property and tourism companies as the cooling economy drags on profits. US index futures declined.

Europe's Dow Jones Stoxx 600 Index lost 1 per cent to 303.61 at 10:49 am in London, extending this year's decline to 17 per cent. Analysts have slashed earnings estimates on concern record oil prices, rising inflation and credit-related losses approaching $400 billion will stifle economic growth.

Analysts estimate earnings for companies in the Stoxx 600 will decline 0.7 per cent this year, according to data compiled by Bloomberg. That's down from 11 per cent growth forecast at the start of the year.

Futures on the Standard & Poor's 500 Index slipped 0.1 per cent before Morgan Stanley, the second-biggest US securities firm, reports earnings today.

National benchmark indices fell in all of the 17 western European markets that were open. The UK's FTSE 100 slid 0.7 per cent. Germany's DAX slipped 0.4 per cent and France's CAC 40 retreated 0.6 per cent.

US
US stocks fell for the first time in four days as Goldman Sachs Group predicted banks will have to raise $65 billion in new capital to cover losses and housing starts and industrial production trailed forecasts.

The S&P 500 lost 9.21 points, or 0.7 per cent, to 1,350.93. The Dow Jones Industrial Average declined 108.78, or 0.9 per cent, to 12,160.3. The Nasdaq Composite Index slid 17.05, or 0.7 per cent, to 2,457.73. Two stocks decreased for each that advanced on the New York Stock Exchange.