STOCKS NEWS ASIA
Asian shares to rise on financials, oil retreats
Reuters
First Posted 07:42:00 07/24/2008
SYDNEY, Australia -- Asian shares are set for a firmer start Thursday, with financial firms seen rising on hopes of a bailout for the two top US mortgage lenders, while a stronger dollar may buoy exporters such as Japan's Canon Inc.
US President George W. Bush dropped a threat to veto a housing rescue bill, boosting shares in Fannie Mae and Freddie Mac, which would receive an emergency government lifeline under the bill.
Concerns about the health of the two companies, which own or guarantee almost half of the $12 trillion in US mortgage debt outstanding, had weighed on financial markets in recent weeks.
Meanwhile, a further drop in oil prices should also help allay concerns about rising inflation and deteriorating consumer confidence.
Crude oil fell by nearly $4.00 to a six-week low Wednesday after US government data showed gasoline stocks rose far above analysts' forecasts, reinforcing concerns high prices and economic turmoil were slashing into energy demand.
Asian stocks listed on Wall Street rose 0.85 percent overnight, while the MSCI's measure of Asia Pacific stocks excluding Japan gained 2.4 percent on Wednesday.
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