Update Daily Investment News

0957 GMT [Dow Jones] Indonesia shares end +0.9% at fresh 2010 closing high of 2799.149 in moderate volume, led by foreign buying in most bank, automotive blue chips, traders say. Index off intraday high of 2813.694; "profit taking in select mining blue chips by some local institutional funds reduced gains of the main index and resulted in worries that the recent rally won't be sustained tomorrow," says trader at Valbury Securities; tips index in 2770-2820 range tomorrow. Among gainers: Bank Negara (BBNI.JK) ends up 4.7% at IDR2,250, Astra (ASII.JK) up 2.9% at IDR43,000. Profit taking hits nickel miner Inco (INCO.JK) down 1.7% at IDR4,250. (edhi.pranasidhi@dowjones.com)

0916 GMT [Dow Jones] USD/IDR higher at 9,138 late vs 9,125 late Wednesday in moderate volume on increased demand from local names for month-end debt repayment. "But, healthy inflows snapping up Indonesian high-yielding assets prevented the greenback from rising further," says dealer at foreign bank. Foreigners net buyers of IDR493 billion worth Indonesian shares which help main index close at fresh 2009 high. Dealer at Bank Danamon expects USD/IDR to correct Friday; tips range at 9,120-9,140. (edhi.pranasidhi@dowjones.com)

0658 GMT [Dow Jones] Indonesian government's IDR-bond prices slightly lower in quiet trade after recent prolonged rally, dealers say; "Our bond market is prone to correction as the prices are already expensive," a trader at a state bank says; recent rally has sent yields close to lowest level since mid-2007; yields of FR40 due 2025 up at 9.79% vs 9.77% yesterday; FR52 due 2030 up at 10.44% vs 10.35% whereas yield of FR28 due 2017 steady at 8.73%. (i-made.sentana@dowjones.com)

0939 GMT [Dow Jones] Sterling gains across the board after February's UK retail sales rebounded 2.1%. However January's -1.8% slump was revised down even further to -3% which might take some off the shine off February's print. GBP/USD spikes to the day's high of 1.4997 from 1.4944, it now trades at 1.4973. EUR/GBP dropped 40 ticks to a one month low of 0.8886, it now trades at 0.8905. (gary.stride@dowjones.com)

0832 GMT [Dow Jones] USD/JPY may be hitting some profit-taking after a sharp jump on surging US yields, record budget spending in Japan and bearish remarks by Japanese officials. But, says UniCredit, it still recommends buying the pair on dips below 91.60. USD/JPY is now at 91.85. (nick.hastings@dowjones.com)

0905 GMT [Dow Jones] There are 2 possible scenarios to come out of the EU summit that could potentially work in favor of the euro says BNP Paribas, however the bank place a low probability on seeing either. The first would be the IMF entirely running the rescue plan for Greece. The second would be European leaders giving a very strong signal of inner EMU solidarity, going beyond what has already been seen. Instead, the bank expects Germany to dominate the agenda, providing the market with a deflationary message and keeping EUR/USD offered with a short-term target of 1.3050.

0907 GMT [Dow Jones] The USD is mixed to higher as investors square up ahead of the EU summit starting in Brussels. As before, concern over Greece dominates, the market fearing that even if EU leaders come up with a rescue package the EUR will still sink. PBOC Vice-Governor Zhu Min didn't help by saying Greece is the beginning of a bigger sovereign debt crisis. Neither did the poor 5-year US Treasury auction, which drove yields sharply higher. Nevertheless, sentiment did get a little nudge higher from hawkish RBA comments and strong NZ growth. The USD is down at Y91.98, while the EUR is a little higher at $1.3333. The GBP is up at $1.4929. (nick.hastings@dowjones.com)

The People's Bank of China offered the first solid evidence that the Greek bailout fiasco is denting reserve managers' faith in the euro Thursday, as a top official expressed concern that the current rout reflects weak leadership and is just the "tip of the iceberg." Speaking in Hong Kong, the PBOC's Vice Governor Zhu Min said he doubts that debt-ridden Greece will go bankrupt, but he added that "the main concern today is obviously Spain and Italy."

0520 GMT [Dow Jones] Indonesia shares by midday up 1.1% at 2806.022 in moderate volume, off earlier high of 2813.694, led by foreign buying in most bank, automotive blue chips, traders say; tip resistance at 2820. "Mild profit taking by local retail investors slightly reduced gains of the main index, but overall sentiment looks very bullish," says trader at Reliance Securities. Among gainers, Bank Mandiri (BMRI.JK) up 3.7% at IDR5,600, car maker Astra (ASII.JK) up 4.7% at IDR43,750 on hopes lower interest rate to boost earnings, while gas distributor Gas Negara (PGAS.JK) up 1.8% at IDR4,350 on hopes for strong 1Q earnings. (edhi.pranasidhi@dowjones.com)

0415 GMT [Dow Jones] Nikkei futures +0.1% at 10,750, but activity cautious, traders say. Selling seen mostly from players wanting to cut positions after seeing cash market weakness in late morning, but sell volume limited, says Phoenix Securities operations general manager Mamoru Nakajo. Says most players want to start building long positions after market retreats, especially when views on economy, corporate earnings outlook are divided. But stronger USD/JPY (now 91.79) makes it difficult to push futures lower for now. "You don't want to buy at the current level, but the weak yen is practically forcing you to do so right now." (kazuhiro.shimamura@dowjones.com)

0445 GMT [Dow Jones] HSI down 1.2% at 20,750.12 midday, tracking losses on Wall Street, but magnitude of fall again more than U.S. stocks; volume remains sluggish at HK$30.61 billion. Taifook Securities notes HK underperformed Wall Street by about 9% so far this year, notably dragged by sluggish mainland bourses, but "we do not think this is justified," given resiliency of local economy, positive outlook for funds inflow ahead. Li & Fung (0494.HK) falls 9.9% to HK$37.60 as FY09 results fail to live up to lofty expectations; China Unicom (0762.HK) down 4.3% at HK$8.82 as FY09 results also disappoints - duo account for 20% of HSI's 259-point loss. HSI remains in less than 800-point range (20,659-21,440) held since March 8. (robert.li@dowjones.com)

0448 GMT [Dow Jones] Singapore stocks flat at midday after choppy morning performance as buying activity tempered by renewed concerns over sovereign debt woes in Europe. STI flat at 2886.04 (off 0.01%) after drifting in tight 2878-2897 band. Immediate resistance at 2900, support at 2850. Market breadth tad negative while volume lighter than yesterday's midday level of 1.0 billion shares at 678.2 million, still driven mainly by small caps. "There's not much to be made from the market these days. Technically, prices are also looking a bit toppish, so people are a bit cautious," says dealer at bank-backed brokerage. Among blue chips, banks and developers mixed, rig builders and dividend plays higher, Singapore Exchange (S68.SG) lower. Tech stocks remain strong, with FTSE ST Technology Index +2.0%. (frankie.ho@dowjones.com)

0442 GMT [Dow Jones] Kospi +0.3% at 1685.89 in light volume, turning higher after hitting day's low of 1677.05 on gains in some banks, techs, automakers on foreign buying, more than offset losses in resource-related stocks. KB Financial (105560.SE) +1.4% at KRW52,700, LG Electronics (066570.SE) +5.1% at KRW114,000, Kia Motors (000270.SE) +2.2% at KRW25,400 vs Posco (005490.SE) down 0.6% at KRW529,000, SK Energy (096770.SE) down 1.3% at KRW116,000 on weaker commodity prices. "Foreigners continued to buy our stocks....Negative news flow about Portugal was part of the euro zone sovereign debt issue that have been well covered, so its impact seems to be limited," says Hwang Bin-ah at Kyobo Securities; expects Kospi may end in black, but gains likely limited due to caution before EU meeting over Greece later. (soo-kyung.seo@dowjones.com)

0448 GMT [Dow Jones] Despite reassuring comments about Aussie economy, weight of surging USD is keeping any AUD gains muted, says Sue Trinh, currency strategist with RBC. "The Aussie tried to push higher on the initial headlines from (RBA Assistant Governor Philip) Lowe, as he was so upbeat, but Aussie hasn't been able to sustain those gains. On back of higher U.S. bond yields, the USD has just shot up," says Trinh. AUD/USD recently at 0.9114, up from overnight low of 0.9074 but below intraday high of 0.9120. Trinh sees firm resistance at 0.9235.(geoffrey.rogow@dowjones.com)

0335 GMT [Dow Jones] NZD/USD lifted tad by slight weakness in USD, euro steadying after sharp falls vs USD overnight, but likely to tread water ahead of EU leaders' summit starting later today, says ANZ Bank NZ Chief Dealer Murray Hindley. Adds although NZD picked up after NZ 4Q GDP came out on expectations at +0.8% on quarter, gain was more related to USD weakness, AUD strength as "GDP was right on expectations." Says most traders have pared back positions ahead of summit; any sign of EU consensus on Greek bailout would mean "risk back on, which would benefit everything. You would see Kiwi back retesting 0.7060-80. If not, you would see risk back off the table and Kiwi pushing down through 0.7000." Pair last 0.7031. (simon.louisson@dowjones.com)

0419 GMT [Dow Jones] Spot gold slightly higher at $1,089.70/oz, up $2.20 vs NY close. Markets up on "pockets of physical buying" but this likely won't be enough to negate market's downtrend after weak overnight performance, says Fortis Nederland executive director Wallace Ng. Gold likely to test support at $1,070 in short-term, could fall to February low of $1,045. (elisabeth.behrmann@dowjones.com)

0356 GMT [Dow Jones] China shares down midday as investors take profit on banks; "yesterday, Bank of China's (601988.SH) better-than-expected earnings prompted some buying interest, yet merely a day later, some investors become preoccupied with bad loan fears and are dumping the stock. This is how fragile and wimpy investors are right now," says Haitong Securities analyst Zhang Qi. Adds, "the longer (the A-share market) is in a consolidation mode, the less investors are willing to pour money in." Shanghai Composite Index down 1.2% at 3020.91, but expected to stay above 3000 today. Bank of China down 1.2% at CNY4.17, ICBC (601398.SH) down 1.0% at CNY4.83. Shenzhen Index off 0.9% at 1176.53. (michelle.ng@dowjones.com)

S&P 500 Diverges From China in Bullish Sign: Technical Analysis
(Bloomberg) -- The Standard & Poor’s 500 Index has set new highs while China’s benchmark stock index failed to surpass its August peak, a divergence that makes U.S. equities more attractive, according to Janney Montgomery Scott LLC.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKJxFmQYHym4

Euro May Fall 3.2% Versus Dollar on Charts: Technical Analysis
(Bloomberg) -- The euro may fall about 3.2 percent against the dollar by the end of next week after the currency dropped through a so-called support level, according to Mitsubishi UFJ Securities Co. in Tokyo.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2WChTRRKWkY

Stoxx 600 Meets Resistance at 2010 High: Technical Analysis
(Bloomberg) -- The Stoxx Europe 600 Index is facing “strong technical resistance” after rising to the highest level so far this year, making a further advance before April unlikely, according to technical analysts at UBS AG.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aP84bWMSCdIw

Gold May Fall to $1,074, Commerzbank Says: Technical Analysis
(Bloomberg) -- Gold, trading near a three-week low, may drop toward $1,074 to $1,079 an ounce, according to technical analysis by Commerzbank AG.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajQtASsLj8l8

Global Investors Cut China Stock Holdings, EPFR Says
(Bloomberg) -- Investors reduced their holdings of Chinese equities in January as the country’s government stepped up efforts to cool asset bubbles, according to EPFR Global.

Coffee May Gain 8% on Brazil Frosts, Roaster Says
(Bloomberg) -- Arabica coffee may advance as much as 8 percent as the first frost in a decade may threaten crops in Brazil, the world’s largest grower, according to Japanese roaster Key Coffee Inc.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a7Fib2UXSSPE

Sell U.K. Stocks to Buy Emerging Asia, Julius Baer’s Lee Says
(Bloomberg) -- Investors should get out of the U.K. as it tackles its fiscal deficit and buy stocks in Asia’s emerging markets on expectations China will allow the eventual appreciation of the yuan, Bank Julius Baer & Co. said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asi.Ufh0dsGI

Thai Stocks to Rally Up to 10% This Year, Analyst Survey Shows
(Bloomberg) -- Thai equity analysts expect the market to extend gains by as much as 10 percent this year as economic recovery bolsters corporate earnings and political instability wanes, a survey by a trade group showed.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azh40SoP4B.4

Citigroup’s Buiter Warns China Facing ‘Boom, Bubble and Bust’
(Bloomberg) -- China appears on track for an “asset boom, bubble and bust” that may take three years to play out and probably won’t be thwarted by tighter economic policy, Citigroup Inc. economists said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ad8Pq89Z_Z3A

Lack of Earnings Warnings Is Good Sign for Stocks: Hogan
Few companies are issuing earnings warnings as the first quarter comes to a close, which "means earnings are going to be much better" and will help lift stocks, Jefferies' chief market analyst Art Hogan told CNBC.com
http://www.cnbc.com/id/36019439

Earnings Will Continue to Be 'Very Robust' This Year
Markets remained lower on Wednesday after sales of newly built U.S. homes fell for a fourth straight month to a record low in February. What should investors expect going forward? Michael Jones, chief investment officer at Riverfront Investment Group, and Andrew Kanaly, chairman of Kanaly Trust Company, shared their insights.
http://www.cnbc.com/id/36018330

Why the Market Rallied—And Will Continue To
The closing bell rang on another strong day for the markets, Cramer said, thanks largely to short sellers. Billion-dollar hedge funds have been caught on the wrong side of their trades, and now they’re racing to cover their bets. That’s how the Dow was able to add another 103 points on Tuesday to the incredible run it’s already had.
http://www.cnbc.com/id/36002041

Halftime Report: Can Momentum Drive Stocks Even Higher?
Only two things seem able to shake this market: debt troubles abroad and housing troubles here at home. We got a double whammy Wednesday.
http://www.cnbc.com/id/36018942

Bond King Bill Gross: I Prefer Stocks Over Bonds Right Now
The bond king now likes stocks.Bill Gross, co-CIO at Pimco where he helps manage the world's largest bond fund, said in an interview with CNBC that all things considered, he prefers stocks over bonds in the current investing climate.
http://www.cnbc.com/id/36021165