Asian Stocks Climb, Paced by Caltex, Mitsui; Mitsubishi Estate Declines

(Bloomberg) -- Asian stocks advanced for a third day,
led by energy-related shares, after declining U.S. fuel stockpiles
and attempted car bombings in the U.K. lifted the price of crude.

Caltex Australia Ltd., the nation's biggest oil refiner, rose
the most in two weeks. Mitsui & Co., a Japanese trading company
that generated about a sixth of last year's revenue from energy,
jumped by more than 3 percent for a second straight day.


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Gold steady as security, inflation fears support

(Reuters) - Gold was steady on Monday, with support coming from renewed security and inflation worries, while yen-based gold inched up to its highest since last Tuesday.

Spot gold stood at $649.50/651.00 an ounce at 0311 GMT, versus $648.70/$650.20 in late New York.


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India's Sensex Advances to a Record High, Led by Reliance Communications

(Bloomberg) -- India's Sensitive Index rose to a
record. Reliance Communications Ltd., the nation's second-biggest
wireless company, gained after Morgan Stanley raised its earnings
forecast for the company citing higher subscriber additions.

``A higher subscriber base and relative stable revenues per
user should lead to higher profit margins for the entire
industry,'' Mumbai-based analyst Vinay Jaising at Morgan wrote in
a note to clients today.


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Trichet 'Vigilance' Vow Gives Way to Less Visilibility, More Volatility

(Bloomberg) -- In the annals of central-banker
buzzwords, ``strong vigilance'' is probably about to go the way
of ``measured pace.''

Investors and economists who've grown used to European
Central Bank President Jean-Claude Trichet's vow to be on
constant lookout for signs of faster inflation are likely to
find the term disappearing from his pronouncements.


Read more at Bloomberg Bonds News

Yen Gains Versus Euro on Speculation of Funds From German Bund Redemptions

(Bloomberg) -- The yen rebounded from a record low
versus the euro on speculation Japanese investors will bring back
money invested in German bunds.

Germany pays more than 16 billion euros ($21.7 billion) in
coupon and principal on government debt July 4, according to data
compiled by Bloomberg. The yen last month declined to an all-time
low against the euro and a 4 1/2-year low versus the dollar as
investors sent funds overseas in search of higher yields.


Read more at Bloomberg Currencies News

Taiwan Dollar Falls, Reversing Gain on Speculation of Outflows; Bonds Drop

(Bloomberg) -- Taiwan's dollar weakened, reversing
appreciation that had sent it to the highest in almost six
months, on speculation investors will buy the U.S. currency to
invest abroad for higher returns. Local bonds declined.

The island's currency also fell on speculation oil
companies are demanding more U.S. dollars as crude prices trade
near a 10-month high. Investors have shifted funds overseas as
Taiwan's benchmark interest rate of 3.125 percent is the second-
lowest in Asia after Japan, making local bonds and deposits
unattractive and weighing on the currency.


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Stocks Lose Takeover Premium as U.S. Buyouts Slump, Bond Yields Increase

(Bloomberg) -- The steepest drop in mergers and
acquisitions in 16 months is making U.S. stocks the most
expensive compared with bonds in two years.

This year's record pace of takeovers slowed by 49 percent
in June, data compiled by Bloomberg show. Delaware Investments,
the Hartford and City National Bank, which manage more than $500
billion, say the decline plus the decision by leveraged buyout
firm Blackstone Group LP to sell shares to the public are
signaling that the five-year bull market is nearing an end.


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JGB futures hit 3-wk high as tankan meets forecast

(Reuters) - "The headline figures are as expected, but there are a few
worrying points, such as current as well as future weakness in
smaller firms, and a drop in the sentiment index for the raw
materials sector," said Mari Iwashita, a fixed-income strategist
at Daiwa Securities SMBC.




The quarterly tankan survey also showed companies were still
refraining from raising prices despite rising costs, while a flat
business outlook for big companies suggested their activities are
on a plateau now, Iwashita said.
"The survey does not, however, affect the general scenario of
the economy or expectations for a Bank of Japan rate hike," she
said.


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Asia Energy Day Ahead: Oil May Rise; CBOT Sale to Chicago Merc Is Opposed

(Bloomberg) -- Crude oil may rise this week on
speculation that U.S. inventories will fall because of increased
consumption by refiners. Chicago Board of Trade's largest
shareholder, Sydney-based hedge fund Caledonia Investments Ltd.,
has voted against the proposed sale to the Chicago Mercantile
Exchange because the price is too low.

MOST READ MARKETS STORIES


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Australian Stocks Advance, Led by BHP Billiton on Higher Crude Oil Prices

(Bloomberg) -- Australia's benchmark stock index, the
S&P/ASX 200 Index, rose 0.15 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange rose 9.10 to 6,284.00. Among the stocks in the index, 90
rose, 93 fell and 18 were unchanged.


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European automakers face rating challenge: Moody's

(Reuters) - "Moody's believes global demand for passenger cars and light vehicles should grow by 2-3 percent per annum in the long term," Falk Frey, a Moody's senior vice president, said in a report. "However, the challenges for European manufacturers to participate in this trend are immense."




The credit ratings agency said the main driver of the credit quality of European automakers in the short-to-medium term will be their dependency on Western European markets where demand is set to remain flat, leading to a continued battle for market share. French and Italian producers in particular are highly exposed to Western Europe, it said.


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Japanese Yen, Korean Won, Indian Rupee, Thai Baht: Asian Currency Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian currencies today.

Exchange rates are from the June 29 session.


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Discover may struggle after spinoff: Barron's

(Reuters) - Barron's said that Discover "shares, like its fundamentals,
are apt to come up short."




Read more at Reuters.com Mergers News

JFK terminal closed briefly, suspicious package

(Reuters) - No information was available on what was inside the package. The airline said flights were not delayed.




U.S. airports have been on heightened security at the weekend after the explosion of a fuel-filled jeep on Saturday at Scotland's busiest airport that police said was a terrorist attack linked to failed car bombings in London.


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Kuwait's KIA says to keep Daimler stake unchanged

(Reuters) - "We are maintaining the stake. We're quite happy with it.
After the problems in the past things have been turning around,
looks like it is in a good form now," KIA's Executive Director
Saleh al-Sagoubi told reporters.




DaimlerChrysler announced in May it would sell an
80.1-percent stake in Chrysler Group to private equity firm
Cerberus Capital Management [CBS.UL], unwinding the 1998 merger
of Daimler-Benz and Chrysler that never worked out as planned.


Read more at Reuters.com Bonds News