Stock Market

Japanese industrial output jumped 5.9 percent in May as car and electronics production pulled out of a deep slump, although an inventory build-up in some sectors suggested the rebound would soon lose momentum. Manufacturers forecast output growth to slow to 3.1 percent in June and to just 0.9 percent in July amid an absence of a convincing global recovery.

Guilin Sanjin Pharmaceutical, the first firm to launch an initial public offering in China since September, started taking orders on Monday, expecting the offer to be heavily oversubscribed, dealers said. Analysts said the retail tranche of the IPO drew heavy demand from the early hours as investors believe Sanjin will shine on its debut due to ample liquidity in the market.

Real estate company SRE Group aims to raise a total of about $145 million via a bond issue and share sale, according to two separate term sheets. SRE plans to sell 550 million yuan ($80.48 million) worth of US dollar convertible bonds due in 2014, raising capital to repay debt. Credit Suisse and Deutsche Bank are the joint book runners, a term sheet said.

Moody's Investors Service said on Monday it changed the outlook for the US port industry to negative from stable, citing economic trends, including the recession and weak consumer confidence. "The breadth and depth of the economic downturn may result in fundamental shifts in trade patterns, and negatively affect the competitive position of some ports," said Baye Larsen, a Moody's analyst, in a statement.

US stocks rose on Monday, sending the S&P 500 to a seven-month high, as reassuring economic data reinforced hopes of economic stabilisation, while General Motor's long-expected bankruptcy petition lifted uncertainty about the automaker's fate.

European shares closed at their highest level since January 6 on Monday, with energy companies and miners among the biggest gainers as data from the United States and China sparked optimism on economic recovery. The FTSEurofirst 300 index of top European shares rose 2.8 percent to 886.27.

Singapore shares on Monday closed 2.19 percent on higher in line with regional gains on hopes for a global economic recovery, dealers said. The blue chip Straits Times Index (STI) closed up 50.99 points at 2,380.07 on volume of 3.53 billion shares worth 2.45 billion Singapore dollars (1.70 billion US). Gainers led losers 520 to 108, with 618 issues unchanged.

Malaysian shares rose 1.67 percent on Monday led by plantation stocks as gains in regional markets spilled over into the local bourse, dealers said. The Kuala Lumpur Composite Index added 17.69 points to 1,061.80. Advancers outnumbered decliners 424 to 235. Turnover was 1.61 billion shares worth 1.68 billion (480 million dollars).

The dollar lost its footing on Monday and headed back to multi-month lows against commodity-related currencies, the euro and sterling as investor appetite for higher-yielding assets continued to recover. The US currency took in its stride news that General Motors Corp would file for Chapter 11-bankruptcy protection later on Monday, a move long expected.

The interest rates banks charge each other to borrow dollars dipped to a further record low on Monday, while euro rates also fell, as excess liquidity increased, after coming under upward pressure last week. Euro Libor fixings were helped lower by a further decline in overnight rates.

Interbank buy/sell rates for the taka against the dollar on Monday. 69.03/69.03 (previous 69.03/69.03). Call Money Rates: 1.50-10.00 percent (previous 1.25-10.00 percent).

The Taiwan dollar climbed sharply to an 8-month closing high on Monday on foreign fund inflows, exporter purchases and signs that the global recession may be easing after the US economy beat its first quarter forecasts. The Taiwan dollar closed at T$32.375, the highest final price since reaching T$32.350 on October 7 and 0.8 percent stronger than Wednesday's final price of T$32.650.

The yuan reached its highest level against the dollar in nine months in benchmark offshore non-deliverable forwards (NDFs) on Monday as solid economic data fed expectations of slightly faster appreciation. The stronger NDFs coincided with a visit to China by US Treasury Secretary Timothy Geithner, who called on Beijing to give more play to market forces in setting the yuan's exchange rate but refrained from making more strident demands for appreciation.

US Treasury Secretary Timothy Geithner on Monday reassured the Chinese government that its huge holdings of dollar assets are safe and reaffirmed his faith in a strong US currency. A major goal of Geithner's maiden visit to China as Treasury chief is to allay concerns that Washington's bulging budget deficit and ultra-loose monetary policy will fan inflation, undermining both the dollar and US bonds.

The Hong Kong dollar was trapped in a narrow range against the US dollar on Monday, while interbank rates remained at a low levels because of abundant liquidity in the banking system. The local currency traded between 7.7511 and 7.7520 on the day, ending little changed from late Friday trade in Asia.

The dollar edged up against the yen on Tuesday after data showed improvement in US consumer confidence, while worries about Germany's economy and banks knocked the euro off last week's 4-1/2-month high. Profit-taking on the euro's recent rise to $1.4055, its highest level since early January, also hurt the currency.

The dollar and yen slipped against other major currencies on Thursday as European shares eked gains, renewing appetite for so-called riskier assets ahead of the Easter holidays. The euro was supported by a 0.3 percent rise in regional share prices, although the currency retreated from a session high after a European Central Bank Governing Council member said that a fall below 1 percent in the central banks key rate was "open for discussion."

The cost of borrowing euro funds on the interbank market fell on Thursday as traders priced in an expected interest rate cut from the European Central Bank and braced for potential unconventional policy measures. Bank-to-bank dollar and sterling borrowing costs also fell as risk appetite across financial markets on the second day of the new quarter rose, with banks among the big winners in a broad equity rally and oil up over 6 percent.

The US dollar and euro rebounded against the yen on Thursday, as investors grew more comfortable buying risky assets such as stocks and commodities, dampening the Japanese currencys safe-haven appeal. Sharp gains on Wall Street led by consumer shares along with the surge in oil, gold, and other base metals have offset persistent concerns about the viability of the US banking system.