Breaking News : Jul 25 2006

Date : Jul 25 2006, 08:33
Title : News Story
Header : Taipei shares higher in early trade on Wall St bounce; techs in focus

DJIA 11051.05 +182.67 +1.68%
Nasdaq 2061.84 +41.45 +2.05%
S&P 500 1260.91 +20.62 +1.66%
FTSE 100 5833.90 +114.20 +2.00%
Xetra DAX 5578.05 +127.04 +2.33%
2-Yr US Treasury 100 2/32 -1/32 yield 5.09% +1.3
5-Yr US Treasury 100 18/32 flat yield 4.99% 0
10-Yr US Treasury 100 20/32 flat yield 5.04% 0
USD/JPY 116.69-73 +0.51% 116.92-116.15
EUR/USD 1.2630-34 -0.61% 1.2707-1.2611
AUD/USD 0.7543-48 +0.23% 0.7550-0.7502
USD/JPY 1M Vol 8.15/8.40%
EUR/USD 1M Vol 7.50/7.80%
AUD/USD 1M Vol 8.10/8.20%
Comex Gold $613.20 -$7.00 $615.80-$602.50
Nymex Crude (NY) $75.05 +$0.62

ASIAN OUTLOOK:

STOCKS:
Asian share markets are set to head higher after news on mergers and
acquisitions and on corporate earnings sent U.S. shares sharply higher
overnight.
However, crude oil futures in New York topped $75.00 a barrel last night,
partly on the back of a gasoline rally triggered by a growing raft of
refinery outages.
Among metals, Comex gold futures were knocked down to a three-week low in
New York amid fund liquidation and a firmer U.S. dollar, but they did
recover some losses by the close. London Metal Exchange copper prices were
stronger by the kerb as prices responded to concerns over supply
disruptions. LME aluminum and zinc benefited from consumer buying, while LME
nickel rose strongly on the back of another drawdown in stocks.

FOREX:
The dollar gained during a quiet New York session as investors took
profits on last week's falls.
The correction comes ahead of a host of data this week in the U.S.
Investors are awaiting June existing home sales tonight, the Fed's Beige
Book tomorrow, and June durable goods orders and new home sales Thursday.
"It's really the housing data and getting a cue on the housing sector that
is going to be pretty interesting," notes Alan Ruskin, head of international
strategy at RBC Greenwich in Conn.
More importantly, however, will be the release of the U.S.' second quarter
gross domestic quarter data Friday, which is expected to confirm a slowdown,
albeit an orderly one, of the economy.
The German IFO index will likely be the most important data in the euro
zone through the week, particularly ahead of the meeting by the European
Central Bank on Aug. 3.

BONDS:
U.S. Treasurys have provided little direction for the region's bond
markets, settling flat overnight.
"We saw some selling that met buying and it seems the market is finding
its range," said Kevin Flanagan, fixed income strategist at Morgan Stanley
in Purchase, N.Y. "At least for the next few days this pattern should hold,"
he added.
In trade last night, odds of a 25-basis-point Federal Reserve rate hike in
August were around 42%. Such a stance leaves the market vulnerable should
forthcoming data surprise to the upside and suggest a rate increase next
month is more likely than not, says Flanagan.
Japan's Ministry of Finance will auction Y800 billion worth of 20-year
JGBs today. Analysts expect the coupon for the bonds to be set at 2.3%,
unchanged from the previous June issue.
"An issuance of Y800 billion per month is quite a lot, so we're worried"
whether the bonds will attract enough investor demand, says Takafumi
Yamawaki, a bond strategist at Morgan Stanley Japan.