Japanese stocks advanced for the first time in three days after
technology firms predicted higher earnings and as investors snapped up
companies whose sales are relatively resilient to an economic slowdown.
Konica Minolta Holdings Inc., the No. 2 maker of film used in
liquid-crystal displays, jumped the most in seven years after
forecasting a profit gain. Japan Tobacco Inc., the world's third-
largest cigarette maker, climbed the most in a month, while Takeda
Pharmaceutical Co. sent drugmakers higher. Nisshin Oillio Group Ltd.
soared the most in three decades after the century-old cooking oil
maker said profit may double this year.
Almost the same number
of stocks rose and fell on the benchmark.
Higher commodities prices prompted Merrill Lynch & Co. to cut its
2009 growth forecast for Japan. Crude prices rose 1.8 percent to a new
record of $125.96 a barrel on May 9, extending their gain to a sixth
day.
European
stocks advanced for the first time in three days as takeover
speculation lifted shares of U.K. retailers and an oil discovery in the
North Sea boosted the profit outlook for energy companies.
DSG International Plc and Kesa Electricals Plc, the largest U.K. electronics retailers, rallied on optimism Best Buy Co. may seek European bid targets after partnering with Carphone Warehouse Group Plc. Kingfisher Plc, Europe's biggest home- improvement retailer, rose for a fourth day amid speculation a private equity firm may make a bid. Dana Petroleum Plc surged to a record on its oil find.
DSG,
based in Hemel Hempstead, England, gained 5.3 percent to 74.25 pence.
Kesa, the owner of the Comet chain, rose 4.9 percent to 227 pence.
Best
Buy, the largest U.S. electronics retailer, and London-based Carphone
Warehouse signed a 1.1 billion pound ($2.15 billion) joint venture last
week. Under the venture, Best Buy plans to open stores under its brand
name across Europe, beginning in the U.K. Carphone Warehouse said it
has ``very ambitious'' expansion plans.
Mark Webb, a
spokesman for DSG, and Kesa spokesman Alex Pettifer declined to comment
on ``speculation.'' Best Buy spokeswoman Susan Busch did not
immediately return an out of hours answer-phone message.
Kingfisher jumped
3.7 percent to 151.7 pence. Buyout speculation has surrounded
Kingfisher since at least 2005. The retailer became a more attractive
target after its stock fell 39 percent last year as Britain's housing
market slowed.
U.S. stocks rose,
rebounding from the first weekly drop in a month, after retailers
posted better-than- estimated earnings and the world's largest bond
insurer said it has enough cash to cover the securities it guarantees.
AnnTaylor
Stores Corp. and Collective Brands Inc. helped spur gains in all 30
companies in the Standard & Poor's 500 Retailing Index on results
that topped analysts' estimates. MBIA Inc. climbed for the first time
in four days after the debt guarantor said it has ``ample liquidity''
and won't have to raise more capital. Research In Motion Ltd. and Apple
Inc. rallied on speculation new phones will boost earnings. Limited
Brands Inc., the owner of the Victoria's Secret lingerie chain, added
74 cents to $18.69. TJX Cos., the owner of the T.J. Maxx and Marshalls
chains, increased 75 cents to $31.79. Nordstrom Inc., the century-old
luxury department-store chain, climbed 99 cents to $35.38.
Retailers
also advanced as crude oil for June delivery fell 1 percent to $124.68
a barrel in New York. Gasoline futures slipped 0.5 percent.
Wal-Mart,
the world's largest retailer, climbed 87 cents to $58.05. Citigroup
Inc. raised its share-price forecast to $67 from $57, citing the
potential for increased earnings at its overseas stores. Wal-Mart
reports first-quarter earnings tomorrow.
McDonald's, the biggest restaurant company, increased 86 cents to $60.10.