Update Daily Investment News

0320 GMT [Dow Jones] Indonesia shares +0.6% at 2569.599 in light volume with bank stocks leading advances; traders say gains across regional markets, Wall Street's rise overnight lifting sentiment. Resistance eyed at 2590. "Healthy inflows in banks, telecommunication and mining blue chips have driven the main index higher despite profit-taking by local funds," says trader at Reliance Securities. Bank Mandiri (BMRI.JK) +1.1% at IDR4,550, Bank Rakyat (BBRI.JK) +0.7% at IDR7,250, while bellwether Telkom (TLKM.JK) +2.5% at IDR8,350 on bargain-buying.

0339 GMT [Dow Jones] RBA raised cash rate target further one quarter of a percentage point to 4.00% Tuesday as economy accelerates and labor market conditions tighten rapidly. Tightening, which was forecast by majority of economists, follows pause in February. Economists expect RBA to raise rates a number of times in 2010 as it normalizes rates, deals with economy reinvigorated by strong commodity demand from Asia. The hike keeps RBA well out in front of Group of 20 peers, most of which still have rates set close to zero and continue to face weak economies.

0404 GMT [Dow Jones] Don't expect another RBA interest rate increase next month after central bank hikes for fourth time in five meetings today, says Stephen Walters, chief economist for JPMorgan. In accompanying statement, "(the RBA) suggested they are going to get back to a normal rate sometime soon, but expect them to do it every couple of months and I don't see them going back-to-back anytime soon," says Walters, who called today's hike another "finely balanced decision but with a leap of faith" given commentary was so similar to February when RBA didn't hike rates.

0317 GMT [Dow Jones] Base metals drifting lower on combination of overnight USD strength vs GBP, EUR plus profit taking on realization that Chile earthquake to have only very limited impact on copper supply. "It seems the Chile situation wasn't as alarming for copper as it first appeared," says Singapore-based trader. LME 3-month copper at $7,290/ton, down $110 with 1,209 lots done. U.S. ISM data of manufacturing activity slipped a bit to 56.5 last month from 58.4 in January, but trader says data wasn't too negative at component level. Employment index particularly encouraging, moving up to 56.1 last month from 53.3 in January and December's 50.2. Prices paid index also showing some inflation in the pipeline which tends to support commodities. LME 3-month aluminum at $2,132/ton, down $11 with only 58 lots done.

0359 GMT [Dow Jones] China shares down slightly midday, reversing earlier mild gains, led by profit taking in metal producers as Chile earthquake-induced supply concerns ease. Shanghai Composite Index down 0.2% at 3080.52; support at 3000. "Metal stocks may continue to see some correction as investors try to gauge their prospects. But the index is likely to be steady as trading appetite will be limited ahead of the parliament sessions," says Zhao Jianxing from China Merchant Securities. China parliament's key annual meetings start this Friday. Among actives, Jiangxi Copper Co. (6000362.SH) off 3.0% at CNY37.37, Shandong Gold-Mining Co. (600547.SH) down 1.8% at CNY68.17. Shenzhen Composite Index up 0.1% at 1185.56.

Soros Signals Gold Bubble as Goldman Predicts Record
(Bloomberg) -- George Soros is helping drive up gold prices by doubling his bet in a market even he considers a “bubble” as Goldman Sachs Group Inc., Barclays Capital and HSBC Holdings Plc predict more gains before it bursts.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avsz5zUl.3yo

Marc Faber Sees 20% Correction if S&P Reaches New High: Video
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiPKzxRg7GVY

China Stocks to ‘Struggle’ on Policy, Mowat Says
(Bloomberg) -- China’s stocks are “likely to struggle” until there’s more clarity on government policies to rebalance the economy, according to JPMorgan & Co.’s Adrian Mowat.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a94cj6xKV7Do

Buffett Says U.S. Housing Will Recover by Next Year
(Bloomberg) -- Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPiB9cWQpGQo

Good News for Stocks: M&A Shows Signs of Big Rebound
By: Jeff Cox CNBC.com
A spate of recent corporate deals has market pros thinking that M&A is back, providing opportunity for investors looking for a way to make money in a slow-moving market.
http://www.cnbc.com/id/35646430

'Powerful' 17% S&P Growth in 2010: Equity Strategist Phil Dow
By: CNBC.com staff
Stocks held minor gains Monday, after reports showed that consumer spending stayed even but US manufacturing grew in February. What's ahead for markets?
http://www.cnbc.com/id/35645326

Double Dip Could Begin in This Sector: Distress Expert
By: Reuters
U.S. manufacturers are still struggling with the economic downturn and there is substantial risk the U.S. economy could face a double-dip recession, a private equity investor who specializes in turning around struggling industrial companies said Monday.
http://www.cnbc.com/id/35649512

0246 GMT [Dow Jones] ING reviewing its forecast for total 75 bps hikes this year by Bank Indonesia for downward revision. February CPI below target at +3.81% on year (Dow Jones poll tipped +3.97%) vs January's +3.72%; house says fuel-price-related base effect behind swing in transport component to 1.6% on-year inflation vs 1.0% deflation in January; "this was technical." Adds, moderation in core inflation to +3.88% on year vs January's +4.43% "is a sign of low underlying pressure." Still expects inflation to head towards 6% by mid-year, upper level of BI's 4%-6% target range, but notes BI has said rates could stay on hold if CPI within target.

0217 GMT [Dow Jones] Bank Indonesia may push back timing of rate hikes, Barclays Capital says, after February headline, core inflation benign. February CPI +3.81% on year vs consensus in Dow Jones poll for +3.97%, January's +3.72%; house notes February core inflation relatively contained, +3.88% on year vs January's +4.43% despite consumer spending holding up well through FY09, relatively high capacity utilization rates. Tips food prices to continue rising on sequential basis but notes government unlikely to raise fuel, electricity tariffs in 1H10. "Although we continue to expect BI to start its tightening cycle in late 2Q10, there is a risk that hikes get pushed further out if the benign inflation environment continues." Tips BI to keep rate at 6.50% Thursday.

0241 GMT [Dow Jones] Nikkei ends morning session down 0.02% (2.26 points) at 10,169.80; although index opened higher on Wall Street's gains, upside capped by lingering concerns over yen strengthening, says Mizuho Securities market analyst Yukio Takahashi. Adds, weakness in Shanghai and Hong Kong stocks also weighing on Japanese market sentiment, expects resistance to hold at intraday high of 10,238.96, with support for rest of session at psychologically key 10,000 level. Says players also watching Australian central bank's (RBA) possible rate hike decision (due 0330 GMT). 20/33 Topix subindexes lower, with rubber makers (down 1.7%), oil and coal producers (down 1.3%) largest sectoral underperformers, and financials (banks, brokerages, insurers) all weak. Nomura Holdings (8604.TO) down 1.1% at Y650. Tokio Marine Holdings (8766.TO) down 1.1% at Y2,502. Tech stocks remain solid, however; Tokyo Electron (8035.TO) +1.3%, Advantest (6857.TO) +2.0%, Toshiba (6502.TO) +2.0% after Semiconductor Industry Association said global semiconductor sales surprisingly rose 0.3% in Jan. from previous month.

0236 GMT [Dow Jones] Indonesia government's bond auction today, targeting to raise IDR4 trillion, likely to attract good demand after benign February CPI data yesterday lift bond prices. Government may not entertain bids for high yields as its success in issuing a relatively large amount of IDR49 trillion (almost 28% of its target this year) boosts its "bargaining power", says Mandiri Sekuritas bond analyst Handy Yunianto. Bank Danamon predicts yield of SPN20110303 (due March 3, 2011) to range between 6.81%-6.94%, FR0027 (due July 15, 2015) between 8.41%-8.53%, FR0052 (due August 5, 2030) between 10.63%-10.75%; results likely around 0800 GMT.

0225 GMT [Dow Jones] HSI down 0.8% at 20,887.81, would be in positive territory if not for HSBC's (0005.HK) 6.8% tumble to HK$80.80 after FY09 earnings came out weaker than expected, bringing 209-point loss to index; unit Hang Seng Bank (0011.HK) off 4.9% at HK$109.30. Volume hefty at HK$10.64 billion with HSBC alone accounting for 18% of total. Still, resilient China plays, especially follow-through buying in China banks, lending support; China Construction Bank (0939.HK) +1.2% at HK$6.18, Bank of China (3988.HK) +1.3% at HK$3.97, Bank of Communications (3328.HK) +1.2% at HK$8.75. Ample Financial Group's Alex Wong says HK market rally yesterday "caught bears off guard;" after breaking dull range previously, expects HSI's short-term bias on upside, tips 21,000 as likely target in March.

British Pound Extends Drop Amid Political, Financial Concerns
(Bloomberg) -- The pound dropped for a sixth day versus the dollar, after falling below $1.50 for the first time in almost 10 months, amid concerns that political uncertainties will hamper efforts to reduce the U.K.’s debt.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aAV_KChyZlAM&pos=2

Euro to Gain After Fibonacci Level Breaks: Technical Analysis
(Bloomberg) -- The euro may trade as high as 92.23 pence after breaking through a fourth Fibonacci level in as many days, according to Royal Bank of Canada.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVeUU3r.Hgqk

Dollar May See ‘Deeper Pullback’ Versus Yen: Technical Analysis
(Bloomberg) -- The dollar remains in a downtrend against the yen and may weaken below 87 to the Japanese currency, JPMorgan Chase & Co. said, citing trading patterns.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akt8.hN4Inyw

Euro May Trade Below $1.35, Mizuho Says: Technical Analysis
(Bloomberg) -- The euro may fall further in the near term to $1.3451, where buy orders may be clustered, according to Mizuho Corporate Bank Ltd.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aH5H_ZlJifTs

Thai Stocks May Gain in ‘Re-Rating’ on Thaksin Ruling, UBS Says
(Bloomberg) -- Thai stocks may rise 18 percent by year-end as a court order to confiscate assets from former Prime Minister Thaksin Shinawatra may lead to reduced political tension, UBS AG said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ane39AZA1Kjg