Stock Market

The Dow and S&P slipped on Wednesday, pressured by the financial and energy sectors, although the Nasdaq rose on positive news on online retailers such as Amazon. Investors also weighed mixed news on the labour market. Stocks pared early gains on concerns that bank profits could be hurt by derivatives legislation under consideration.

The Dow Jones industrial average climbed to its highest close in 14 months on Tuesday as a weak dollar boosted natural resource companies' shares and economic data reinforced hopes for a sustainable recovery. Sentiment also got a lift as concerns receded about the impact of Dubai's debt trouble after news that Dubai World planned to restructure about $26 billion in debt.

Britain's leading share index ended 0.3 percent higher on Wednesday as mining firms gained on the back of higher commodity prices, outpacing some weakness in banks and energy stocks. The FTSE 100 closed 15.22 points higher at 5,327.39, adding to Tuesday's strength when the index recorded its biggest one-day gain in more than four months as worries over Dubai's debt problems receded.

Japan's Nikkei stock average edged up 0.4 percent on Wednesday to close at a two-week high, with short-covering buoying the market as the yen fell against the dollar while metals shares rose after gold hit a record high. Silicon wafer maker Sumco Corp dragged on the market as it plunged nearly 9 percent after swinging to an operating loss.

Indian stocks fell 0.16 percent on Wednesday as investors took profits on a sharp run-up in share prices that has been fuelled by strong economic data, dealers said. The benchmark 30-share Sensex index closed down 28.36 points at 17,169.91.

Singapore shares closed 0.92 percent higher Wednesday but further sharp gains in the immediate term were seen limited, dealers said. The blue chip Straits Times Index advanced 25.39 points to 2,796.34. Volume totalled 1.26 billion shares worth 1.43 billion Singapore dollars (1.04 billion US) and there were 265 rising issues, 200 losers while 783 were even.

Malaysian shares closed 0.35 percent higher Wednesday due to bargain hunting in property and construction stocks as fears over the Dubai debt crisis ease, dealers said. The Kuala Lumpur Composite Index rose 4.44 points to 1,271.15.

Stocks in Hong Kong and China chalked up a third consecutive session of bargain-hunting gains on Wednesday after positive US home sales data restored confidence in a global economic recovery and lifted stocks on Wall Street. The Hang Seng Index rose 0.8 percent, or 176.42 points to 22,289.57.

Gulf stock markets steadied on Wednesday after heavy losses in the previous two days, in the absence of fresh developments in the Dubai debt crisis and as the UAE markets were closed. Qatar's Doha Securities Market added more than 350 points to close 5.3 percent higher, regaining most of the losses it sustained on the previous day when it plunged 8.3 percent.

Foreign firms and individuals will be allowed to set up limited partnership firms in China from March 2010, a move that could make it easier for some overseas investors to tap the domestic market. But it remains unclear how far-reaching the rule change, announced on Tuesday, will be. The State Council said it would not apply fully to "investment-oriented" partnerships in China.

The Canadian government set a new two-month deadline on Wednesday for the country's provinces to line up projects to be funded by stimulus cash, and committed to a firm schedule for winding up the emergency spending it pledged after the economy dropped into recession.

China gave no sign on Friday that it was planning an early exit from its stimulus policies, pledging to stick with a pro-growth stance in 2010 to cushion the fallout of the global financial crisis. A meeting of the ruling Communist Party reaffirmed the relatively loose monetary setting and active fiscal policy that China adopted a year ago as the crisis reached its peak, but said there was a need to implement policy flexibly.

Two typhoons which struck the Philippines' main island of Luzon in recent months will probably dampen growth in the near term, stretch state finances and push 480,000 people into poverty, a post-disaster report showed on Wednesday. Damages and losses to crops, property, and infrastructure from typhoons Ketsana and Parma reached nearly $4.4 billion, or 2.7 percent of the Southeast Asian country's gross domestic product.

Russia's economy is likely to grow faster than previously expected in coming years as higher oil prices speed up its return to pre-crisis levels, deputy economy minister Andrei Klepach told a banking conference in London. Gross domestic product could grow by 3.1 percent in 2010 against a previously forecast 1.6 percent, while 2011 could see an increase of 3.4 percent.

Turkey's Economy Minister Ali Babacan said on Wednesday the Turkish economy has left behind the worst of its economic contraction and that he expected more positive gross domestic product figures in the coming quarters. Turkey's GDP shrank 10.5 percent in the first half of 2009, making it one of the worst-hit emerging market economies of the global recession and the government sees a 6.0 percent GDP contraction this year.

The United Nations on Wednesday predicted a fragile world economic recovery next year from a two-year crisis and said the risk remained of a "double-dip" recession. Stimulus packages deployed by many rich nations had played a large part in ending the downturn that began in 2007 and that has been widely blamed on the collapse of a global housing bubble, said a report by the UN economic division.

Deadlock at the WTO once again defeated ministers trying to open up talks on a global trade liberalisation pact ahead of a 2010 deadline, with developing countries taking a constructive stance. A group of 22 developing nations produced a tariff-cut deal negotiated on the sidelines of the ministerial meeting, saying it demonstrated that they were not the cause of the Doha stalemate.

The World Bank's lending to India is set to triple this year, a government statement said Wednesday, as the agency's chief declared the country was poised to be a new driver of global growth. India, which already has 19.57 billion dollars in World Bank loans that are supporting 68 development, infrastructure and other projects, is the Washington-based financial institution's biggest borrower.

The US labour market improved in November, with the number of jobs lost in the private sector falling again and the number of planned layoffs also easing, separate reports showed on Wednesday. The US government is set to report on Friday data for both private and public employment, which is also expected to show the number of job losses falling, though unemployment is still seen above 10 percent.

US stocks gained on Tuesday as a weak dollar lifted commodity prices and home sales data reassured investors about the state of the housing market, considered one of the biggest drags on a recovery. Sentiment also improved as concerns receded about the impact of Dubai's debt woes, which some had feared could lead to another global crisis.