Gold Little Changed in Asia as Dollar Weakness Boosts Appeal; Silver Rises

(Bloomberg) -- Gold in Asia was little changed near a
one-week high, supported by investors demand for the precious
metal as an alternative asset after the dollar weakened on signs
the U.S. economy might slow. Silver rose.

Gold usually moves in the opposite direction to the dollar,
which fell to a four-month low against the Japanese yen and also
traded near a record low against the euro today. Speculation that
a slowing U.S. economy may keep the Federal Reserve from raising
interest rates also weakened the dollar and boosted the appeal of
the precious metal as alternative investment.


Read more at Bloomberg Commodities News

UPDATE 1-Dubai matches Fast Retailing's $900 mln Barneys bid

(Reuters) - DUBAI, Aug 5 - Dubai-based private equity firm
Istithmar raised its offer to acquire Barneys New York Inc.
from Jones Apparel Group Inc. to $900 million on
Sunday, matching a bid by Japan's Fast Retailing Co. Ltd.
.




Istithmar, owned by the government of Dubai, had agreed to
buy the luxury retailer for $825 million before Fast Retailing
entered the fray with a $900 million offer.


Read more at Reuters.com Mergers News

Australian, New Zealand Dollars Rise as U.S. Stock Gain Lifts Carry Trade

(Bloomberg) -- The Australian and New Zealand
dollars gained for a second day against the yen as a rally in
U.S. stocks attracted investors to higher-yielding assets funded
by loans from Japan.

The two currencies headed for weekly gains, recovering from
two-month lows, as the Dow Jones Industrial Average had the
first two-day gain in two weeks. New Zealand's 7.75 percentage
point and Australia's 5.75 point interest-rate premium over
Japan make the currencies favorites for so-called carry trades.


Read more at Bloomberg Currencies News

Carry Trade a `Threat' to Markets, Yen Too Weak, South Korea's Kwon Says

(Bloomberg) -- South Korea's Finance Minister Kwon
Okyu said the yen's weakness isn't justified and that carry
trades based on the Japanese currency threaten to destabilize
global markets.

Borrowing cheaply in Japan to buy assets with higher
returns is ``a potential threat to the international financial
markets and there is a need for a global reaction,'' Kwon said
in a statement after a meeting of Asia Pacific Economic
Cooperation finance ministers in Coolum, Australia.


Read more at Bloomberg Emerging Markets News

Japan's Topix Gains as Earnings Ease U.S. Growth Concern; Konica Advances

(Bloomberg) -- Japan's Topix index advanced after
better-than-forecast earnings in the U.S. lifted indexes there
and eased investor concern that the subprime loan problem will
derail growth in Japan's largest export market.

Exporters also got a boost after the yen weakened against
the dollar and companies including Konica Minolta Holdings Inc.
reported rising profits. Konica jumped the most in three weeks.


Read more at Bloomberg Stocks News

All Nippon, NEC, Hitachi, Mizuho, Mazda, NEC, Ibiden: Japan Equity Preview

(Bloomberg) -- The following stocks may move in
Japanese markets. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

All Nippon Airways Co. (9205 JT): Japan's largest domestic
carrier said first-quarter net income rose 11-fold to 87.4
billion yen ($736 million) as it sold a group of hotels, masking
a drop in operating profit. The stock slid 3 yen, or 0.7 percent,
to 450.


Read more at Bloomberg Stocks News

JGBs rise after solid auction, BOJ view caps gains

(Reuters) - Futures inched up towards a two-month high touched on Monday
as Japanese stocks hovered near a four-month low and dealers
picked up shorter JGB maturities after an auction of two-year
notes attracted solid demand.




"The auction was slightly better
and the Nikkei is still dragging its feet," an analyst at a U.S.
securities house said.


Read more at Reuters.com Bonds News

Japan anti-monopoly watchdog probes steel firms

(Reuters) - Japanese media reports saying the FTC had launched an
investigation into possible price-fixing in these markets sent
shares of Nippon Steel down 2.9 percent to 891 yen and shares of
JFE Holdings down 2.6 percent to 8,140 yen as of 0456 GMT.




Read more at Reuters.com Government Filings News

JGBs sit tight on BOJ rate concerns, auction eyed

(Reuters) - Japan's jobless rate fell to a new nine-year low of 3.7
percent in June, beating economists' median forecast for 3.8
percent and suggesting that solid demand in the job market will
eventually push up prices as expected by the BOJ.




Swap contracts on the overnight call rate
showed a nearly 60 percent chance of a BOJ rate hike in
August, up from around 50 percent the previous day.


Read more at Reuters.com Bonds News

Currency Fund Returns Reach Record in June on Carry Trades, Parker FX Says

(Bloomberg) -- Cumulative returns on currency funds
rose to a record in June as managers profited from declines in
the yen and the dollar, according to Parker Global Strategies.

The yen slid against the euro and the pound last month as
investors borrowed Japan's currency at the lowest interest rate
in the industrialized world to fund purchases of higher-yielding
assets, known as carry trades, Parker Global said. The dollar
fell against major currencies in June as slowing inflation and
consumer spending prompted traders to pare bets on a U.S. rate
increase, Parker Global said.


Read more at Bloomberg Currencies News

Japan's Bonds May Fall on Speculation Investors Will Demand Riskier Assets

(Bloomberg) -- Japanese bonds may fall for a second
day as a recovery in global stock prices signaled investors are
shifting to riskier assets after last week's global rout in
corporate and emerging-market debt.

Ten-year yields may continue to climb from the lowest in
eight weeks after reports showed households increased spending
for a sixth month in June and the jobless rate fell, suggesting
Japan will extend its longest postwar expansion. The reports may
strengthen speculation that the Bank of Japan will raise
interest rates as soon as next month.


Read more at Bloomberg Bonds News

Japan's Household Spending Rises; Unemployment Rate Drops to 3.8 Percent

(Bloomberg) -- Japan's households increased
spending for a sixth month in June and the jobless rate fell,
suggesting consumer outlays will help extend the economy's
longest postwar expansion.

Spending rose 0.1 percent from a year earlier, the
statistics bureau said today in Tokyo. The median estimate of 29
economists surveyed by Bloomberg News was for a 0.7 percent gain.
The unemployment rate dropped to 3.7 percent in June from 3.8
percent in May.


Read more at Bloomberg Bonds News

U.S. Treasuries Decline as Rebound in Global Stocks Dims Allure of Debt

(Bloomberg) -- U.S. 10-year Treasuries fell for the
first time in a week as a rebound in global stock markets reduced
the appeal of fixed-income securities.

Treasuries declined as Asian shares rebounded from a slump
after higher profits at Japanese companies helped ease concerns a
U.S. housing slowdown would crimp the economy. U.S. notes snapped
four days of gains that had been driven by investors seeking the
relative safety of government debt as equity markets dropped.


Read more at Bloomberg Bonds News

Yen May Rise to 116 Per Dollar; Abe Remains Prime Minister, Deutsche Says

(Bloomberg) -- The yen may rise to a four-month high
of 116 per dollar as Japanese Prime Minister Shinzo Abe will
remain in office after his ruling coalition lost its majority in
upper house elections, according to Deutsche Securities.

Abe's decision to retain his post lessens political
instability that may have forced the Bank of Japan to delay an
interest-rate increase next month. The government is likely to
avoid raising sales taxes and close the income gap to appease
opposition parties, supporting consumer spending and the currency.


Read more at Bloomberg Currencies News

JGB futures fall from 2-month high on BOJ jitters

(Reuters) - JGBs quickly gave up early gains made on a drop in Tokyo
share prices as investors were concerned that bond yields have
fallen too far if the BOJ decides to lift the overnight call rate
to a 12-year high of 0.75 percent in August from the current 0.5
percent.




A slump in Japanese stock and credit markets in the past week
and a plunge in global equity markets have stirred doubts about a
BOJ interest rate increase next month, driving benchmark JGB
yields to two-month lows.


Read more at Reuters.com Bonds News

Pound Snaps Six-Week Rally Versus Dollar as Investors Avoid Global Risks

(Bloomberg) -- The pound fell versus the dollar,
snapping a six-week rally, as global stocks slumped and investors
pared so-called carry trades on concern U.S. subprime mortgage
defaults will slow growth.

The U.K. currency slid from a 26-year high this week as
investors unwound purchases of assets funded by borrowing in
Japan and Switzerland, which have the lowest rates among major
economies. The pound fell almost 4 percent against the yen, the
biggest weekly decline in almost five months.


Read more at Bloomberg Currencies News

U.K. Pound Falls Most in Five Months as Investors Unwind Carry Trades

(Bloomberg) -- The pound fell the most against the
dollar in almost five months as global stocks slumped and
investors pared so-called carry trades on concern U.S. subprime
mortgage defaults will slow growth.

The U.K. currency dropped more than 1 percent against the
dollar today, falling from near a 26-year high, as investors
unwound purchases of assets funded by borrowing in Japan and
Switzerland, which have the lowest rates among major economies.
The pound this week fell 3 percent against the yen, its biggest
decline since March.


Read more at Bloomberg Currencies News

Japan Shares Drop on Concern U.S. Housing Slump Will Worsen; Canon Plunges

(Bloomberg) -- Japanese stocks tumbled by the most
in more than four months, on concern a worsening U.S. housing
slump will slow economic growth in the world's biggest economy
and prompt investors to shun equities.

Companies that rely on U.S. sales plunged. Canon Inc. slid
the most since October 2003 and Honda Motor Co. fell 2.5 percent.


Read more at Bloomberg Stocks News

Treasuries Rise as Slide in Global Stocks Spurs Investors to Reduce Risk

(Bloomberg) -- U.S. Treasuries rose for a fourth
day as investors sold stocks and corporate bonds and sought the
relative safety of government debt.

Ten-year securities headed for a third weekly gain as Asian
stock markets slid the most in four months, extending a rout in
global equities. Japan's Nikkei 225 Stock Average slumped 2.3
percent on speculation a worsening U.S. housing slump will slow
growth in the world's biggest economy.


Read more at Bloomberg Bonds News

Yen Strengthens as Slump in Stocks Spurs Investors to Exit of Carry Trades

(Bloomberg) -- The yen rose against all 16 of the
most-active currencies on speculation a slump in stocks will
spur investors to repay loans in Japan used to finance
investment in higher-yielding assets elsewhere.

Japan's currency rose to the strongest in three months
against the dollar and the highest in six weeks versus the euro
as futures traded yesterday in the U.S. indicated Asian stock
markets will drop. The yen's advance was steepest against the
Australian and New Zealand dollars, favorites of the so-called
carry trade, as the Standard & Poor's 500 Index closed yesterday
with a loss of 2.3 percent, the biggest decline since Feb. 27.


Read more at Bloomberg Currencies News