Dollar falls in Asia over weak US data

Dollar falls in Asia over weak US data
TOKYO: The dollar fell in Asian trade Friday amid a broad selling of the greenback following weak US economic indicators, despite growing concerns over a possible Greek debt default, dealers said.

The euro rose to $1.4191 and 115.03 yen in Tokyo morning trade from $1.4141 and 114.96 yen in New York Thursday.

The dollar fell to 81.04 yen from 81.29 yen.

The US unit dipped late Thursday following an report showing US jobless claims last week headed higher after two weeks of declines.

Washington also left unrevised its estimate of first-quarter economic growth at a tepid 1.8 percent. Most analysts had expected a rise to 2.0 percent.

Daisaku Ueno, chief analyst at Gaitame.Com Research Institute, said dealers see no further deterioration in sentiment for the euro after Jean-Claude Juncker, who heads the eurozone finance ministers, suggested the IMF may withhold its payment next month on Greece's bailout.

Juncker said the fifth tranche in a 110-billion-euro loan package could be hampered by IMF rules forbidding the lender of last resort to release funds without a 12-month guarantee of solvency.

Japan on Friday reported a rise in core consumer prices for the first time in more than two years, mainly as a result of an increase in fuel prices, but the economic data were largely ignored by forex dealers.

The core consumer price index, which excludes volatile food prices, rose 0.6 percent in April from a year earlier, the first increase since December 2008. The upturn was in line with market expectations.

But the April rise is unlikely to signal an end to Japan's long-standing deflationary problems as it stems mainly from higher costs for oil products because of increased import prices and supply problems.

Japan's massive earthquake and tsunami in March damaged oil refineries and disrupted distribution of petrol, kerosene and other petroleum products.

Asian shares edge up but Tokyo hit by CPI data

Asian shares edge up but Tokyo hit by CPI data
HONG KONG: Asian shares were mostly higher Friday but Tokyo edged down after data showed consumer prices rose for the first time in
28 months in April due to higher fuel prices following the March 11 disaster.

Hong Kong opened 0.12 percent higher, Sydney gained 0.43 percent, Seoul rose 0.86 percent and Shanghai added 0.18 percent.

Tokyo's Nikkei slipped 0.24 percent by the break after the government released figures showing prices rose 0.6 percent year on year last month, the first increase since December 2008.

Dealers sold up as the data, which excludes volatile food prices, pointed to a jump in costs for oil products due to higher import prices and supply problems. Analysts said the jump does not indicate an end to the country's deflationary woes.

"The CPI uptick came mostly from higher materials costs being passed on to consumers rather than an increase in demand," and that could hurt consumer spending, Hideyuki Ishiguro, a strategist at Okasan Securities, told Dow Jones Newswires.

The Japanese market was also weighed by a slightly stronger yen.

In early Asian trade the dollar fetched 81.22 yen, down from 81.29 in New York late Thursday and well off the 82.00 a day earlier.

The euro bought 114.99 yen, down from 115.06 in New York while it edged down to $1.4135 from $1.4141 in New York.

The euro remained under pressure amid concerns that Greece could default on its debt repayments as Athens warned that it would go bankrupt without the next tranche of a multi-billion-dollar bailout.

However, the International Monetary Fund has said it will not allow the cash to be released unless Greece provides "assurances" on how the country will fund its future.

The US currency was slightly weaker after worse-than-expected figures raised concerns over the world's biggest economy.

The Labor Department announced that jobless claims headed higher after two weeks of declines, while the government also left unrevised its estimate of first-quarter economic growth at 1.8 percent.

Most analysts had expected a rise to 2.0 percent.

Despite the disappointing figures the Dow Jones Industrial Average eked out a small gain of 0.07 percent on Thursday.

On oil markets New York's main contract, light sweet crude for July delivery gained 29 cents to $100.52 a barrel and Brent North Sea crude for July was 20 cents higher at $115.25.

Gold opened in Hong Kong at $1,523.00-$1,524.00 per ounce, up from Wednesday's close of $1,525.00-$1,526.00.

KSE-100 index gains 27.40 points

KSE-100 index gains 27.40 points
KARACHI: Stocks extended gains on Friday amid hopes that the government will announce the removal of a capital gains tax in the upcoming 2011/12 budget, dealers said.

The 2011/12 (July-June) budget is due to be unveiled on June 3.

According to media reports, the government may decide to remove the capital gains tax. A 10 percent capital gains tax is imposed on stocks held for six months or less and 7.5 percent on stocks held between 6 months to a year.

Officials from the finance ministry have declined to comment.

"There is a feeling in the market that the capital gains tax will be removed, and this is helping the sentiment," said Mohammed Sohail, chief executive of brokers Topline Securities.

"This hope is likely to keep the market positive in the sessions ahead of the budget, and if indeed the tax is removed, it should result in increased activity in the market," he said.

The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.22 percent, or 27.40 points, higher at 12,225.22 on turnover of 79.64 million shares.

In the currency market, the rupee eased 85.65/75 to the dollar from 85.57/a day earlier, amid slightly higher dollar demand from importers.

The rupee hit a record low of 86.50 on Monday and dealers said the local unit may face pressure amid increased demand for dollar for import payments and a bleak outlook.

"There are some import payments next week, so the dollar demand would rise and the rupee will see some pressure," said a dealer at a foreign bank.

There are also concerns about the growing tensions with the West, which could choke off much needed foreign aid.

The rupee has lost more than 1.25 percent of its value since then, almost the same as its total loss of 1.53 percent in 2010.

In the money market, overnight rates edges slightly lower and closed at around 13.50 percent, compared with the previous day's close of 13.90 percent.

Obama nominates new defense, CIA chiefs

Obama nominates new defense, CIA chiefs
WASHINGTON: President Barack Obama on Thursday formally nominated Leon Panetta as his new secretary of defense and David Petraeus, who commands the international force in Afghanistan, as Panetta's successor at the CIA.

Obama had first said he planned to nominate Panetta and Petraeus on April 28, just days before US commandos entered Pakistan and shot and killed Al-Qaeda chief Osama bin Laden.

The US Senate must confirm both men, but neither is expected to encounter any serious opposition there.

The White House hopes that Panetta, whose mission would include cutting spending at the Defense Department, would be able to move into the job on June 30, the day current Defense chief Robert Gates is set to leave.

Petraeus will continue to lead the international force in Afghanistan until his successor, General John Allen, takes over in September. Petraeus will retire from the military before moving to the CIA.

The United States began troop withdrawals from Afghanistan this year, making good on a promise by Obama to reduce US troop levels there, although it is not clear how soon or how many additional troops will leave.

A new chairman of the Joint Chiefs of Staff, who is the president's top military adviser, is also expected to be nominated next month. General Martin Dempsey, the current Army chief of staff, is considered Obama's likely choice to replace Admiral Michael Mullen, according to Pentagon officials.

Missouri town says 232 missing after tornado

Missouri town says 232 missing after tornado
JOPLIN: Officials Thursday said 232 people were still missing four days after a tornado tore through a Missouri town, and had only managed to identify one of the 125 bodies found in the storm's wake.

Some of the missing from Sunday's disaster in Joplin may be among the unidentified remains being stored in a hastily constructed mass morgue.

But officials pleaded with anxious family members for patience while they undertake a lengthy identification process involving DNA testing and fingerprinting.

Some may simply have failed to contact anxious friends and family. There may also still be people trapped in the rubble who have not been officially reported missing, Spiller cautioned.

Asked why families were not being allowed into the morgue to visually identify their loved ones, she replied: "It is not 100 percent accurate, and 100 percent accurate is our goal."

In what is one of the worst tornado seasons on record after a series of twisters killed hundreds in southern US states last month, Sunday's was the deadliest single tornado to strike America in six decades.

Crews continue to search through the tangled piles of debris in hope of finding survivors, but hopes were fading after rescuers found no one in the rubble Wednesday -- dead or alive.

Anguished families have kept up a desperate hunt for their missing loved ones. But poor and patchy communications plus the complete devastation of some areas have hampered the search.

Officials said they hoped that by publishing the list of 232 names they could locate the missing and ease the frayed nerves of their families.

Libya ready for ceasefire, demands end to NATO strikes

Libya ready for ceasefire, demands end to NATO strikes
TRIPOLI: Libya said on Thursday it was ready for a ceasefire and negotiations with rebels who hold the east of the country but demanded it include an immediate halt to Nato airstrikes.

The proposal by Prime Minister Al-Baghdadi Ali Al-Mahmoudi, who said it mirrored a plan floated by the African Union, one of Tripoli's few allies, for resolving the conflict, came on the heels peace overtures to Spain and other foreign countries.

It also follows some of the heaviest attacks to date in Nato's Libyan air campaign, which Muammar Gaddafi's government says has exceeded a mandate of civilian protection based on United Nations Security Council resolutions, and now aims at killing or toppling the Libyan leader.

"Libya is serious about a ceasefire, which must be a ceasefire from all sides, especially Nato," Mahmudi told reporters in Tripoli. He dismissed, however, any prospect of Gaddafi's departure -- a key rebel demand.

White House deputy national security adviser Ben Rhodes, speaking at the Group of Eight summit in France, said the United States did not see the new Libyan ceasefire offer as credible because it was not accompanied by action.

Libya was not complying with U.N. demands and its forces were still attacking population centers, so the United States would continue with the military campaign, he told reporters.

The prime minister scorned the rebel Transitional National Council, recognized by a handful of states as Libya's legitimate representative, as former members of the same order they aim to overthrow.

US gives Pakistan list of five 'most wanted' militants

US gives Pakistan list of five 'most wanted' militants
WASHINGTON: As US Secretary of State Hillary Clinton visited Pakistan Friday, the United States gave Islamabad a list of terrorist leaders it wants joint operation against them, officials said.

The list includes Osama bin Laden deputy Ayman al Zawahiri, along with Siraj Haqqani of the Haqqani network, Ilyas Kashmiri, the head of the Harkat-ul-Jihad-al-Islami and suspected al-Qaida leader, and Atiya Abdel Rahman, al-Qaida operations chief, the US TV reported, citing unnamed officials from both governments.

The list was discussed during separate meetings between senior Pakistani and US officials in the past two weeks, including Friday in Islamabad with Secretary of State Hillary Clinton, according to a US official, a Pakistani government official and a Pakistani intelligence official.

The United States is optimistic Pakistan would provide intelligence for prompt and joint actions against these militants.

A US news paper has reported that United States believes all these wanted militants are present in Pakistan.

Pakistan rejects US appeal to reopen liaison offices

Pakistan rejects US appeal to reopen liaison offices
ISLAMABAD: Despite a visit by Hillary Clinton to mend ties, Pakistani leaders reject appeals not to close military intelligence sharing centers and say they will review the US drone campaign. Clinton presses Pakistan to do more against militants, Los Angeles Times reported.

Pakistani officials angered by the secret US raid that killed Osama bin Laden declared they would conduct a full review of operations by US drone aircraft over the country and rebuffed an appeal by visiting US officials not to close military intelligence liaison centers, US and Pakistani officials said.

Secretary of State Hillary Clinton visited Islamabad on Friday in a bid to ease the mistrust deepened by the secret May 2 raid that killed the Al Qaeda chief.

Pakistani leaders see the raid as a blatant violation of their country's sovereignty, and Washington's decision to not inform Islamabad in advance as an example of a glaring lack of trust. For the US, Bin Laden's presence in the military city of Abbottabad, just 35 miles from the capital, renewed long held suspicions among many in the US that Pakistan’s intelligence community, or elements within it, knew that the Al Qaeda leader was there and did nothing about it.

Clinton, in a meeting with President Zardari, Prime Minister Yousuf Raza Gilani, army chief Gen. Ashfaq Kayani and other leaders, emphasized that the US has seen no evidence that anyone in the upper echelons of Pakistani leadership knew of Bin Laden's presence in Abbottabad.

Officials on both sides described Friday's meeting as blunt, and acknowledged that serious disagreements remained. But they said the two sides also agreed that the relationship is mutually beneficial.

A senior US official in Washington said that Pakistani officials rebuffed a US request not to close the liaison offices in Peshawar and Quetta that have been used to share intelligence on militants with Pakistani ground forces.

Pakistan recently ordered US special operations personnel at the so-called "intelligence fusion cells" to leave the country, a setback for US efforts to form closer ties with Pakistani units fighting militants along with the border with Afghanistan. US officials remain hopeful that they can persuade Islamabad to allow the US personnel to reestablish the intelligence-sharing centers, the official said.

Pakistani officials said Zardari also said his government intended to review all aspects of operations by unmanned US drone aircraft. The campaign of drone airstrikes is deeply unpopular among Pakistanis.

8 dead, 12 injured in Bajur Agency blast

8 dead, 12 injured in Bajur Agency blast
BAJAUR: At least eight persons died and twelve injured in a blast that took place Saturday morning at the headquarter of Tehsil Salarzai according to the initial report, Geo News reported.

Security forces have surrounded the area, rescue operation started and trying to ascertain the nature of the blast. The injured have been shifted to the nearby hospital.

Someone, somewhere' provided support to Osama: Clinton

Someone, somewhere' provided support to Osama: Clinton
ISLAMABAD: US Secretary of State Hillary Clinton said on Friday that Pakistan urgently needed to take decisive steps against militancy and that relations between the two allies, tense since the killing of Osama bin Laden, had reached a turning point.

Clinton, the most senior US official to visit Pakistan since US Navy SEALS killed the al Qaeda leader this month, appeared to be trying to smooth over strains, repeating that there was no evidence that any senior Pakistani officials knew bin Laden's whereabouts.

But she also said she had asked President Asif Ali Zardari, Prime Minister Yusuf Raza Gilani as well as Army chief General Ashfaq Kayani to do more to fight militants.

"This was an especially important visit because we have reached a turning point," Clinton told reporters, after meeting the Pakistani officials with US Joint Chiefs of Staff Admiral Mike Mullen. "We look to Pakistan, to the government of Pakistan to take decisive steps in the days ahead.

"America cannot and should not solve Pakistan's problems. But in solving its problems, Pakistan should understand that anti-Americanism and conspiracy theories will not make problems disappear."

Clinton said Pakistani officials had told her "someone, somewhere" had been providing support for bin Laden in Pakistan, but reiterated there was no evidence of any sort of complicity by senior government officials.

Clinton has emphasised the need to continue working closely with Pakistan.

"This particular relationship with Pakistan is too critical and now is too critical a time to allow whatever differences we may still have with one another impede the progress we must still make together," Mullen told the news conference.

"I harbour no illusions about the difficulties ahead, nor do I leave here misinformed about the trust which still needs to be rebuilt between our two militaries.

National challenges require unity: PM

National challenges require unity: PM
ISLAMABAD: Prime Minister Syed Yusuf Raza Gilani on Friday said the challenges confronting the country today require greater unity among the people and leaders across the political divide.

In his opening statement while chairing the cabinet's meeting, Gilani said during testing times, it was imperative to maintain unity among the ranks and not let despondency take hold on the minds of people.

"I am sure that together we will overcome the challenges we face today," he said, adding that with this kind of determination no force could ever demoralize the countrymen in defending their homeland.

Gilani reiterated to foil the nefarious designs of terrorists and their collaborators. He paid rich tribute on behalf of the Cabinet to those who sacrificed their lives during the terrorist attack at the Mehran Naval Base.

As a nation, he said, "we are proud of the courage and valour with which the Jawans of Navy, Rangers and Police who tried to defend the strategic naval installations and properties."

The Prime Minister said that during his visit to the hospital in Karachi, he was touched to see the spirit of injured Jawans who remarked that it would have been better had they also embraced Shahadat.

He recalled that the especially convened meeting of the Defence Committee of the Cabinet decided for coordinated efforts to prevent and pre-empt acts of terrorism. He stated that the defence and law enforcement agencies had been directed to use all necessary means to eliminate terrorists and militants.

The Prime Minister informed the Cabinet about his visit to China which he termed as very important as it coincided with the 60th Anniversary of diplomatic ties between the two countries.

He said besides talks in defence, trade and energy, the Chinese leadership reiterated its undiluted, unequivocal and principled support to Pakistan's stance and strategy in the fight against terrorism.

The Prime Minister stated that the Chinese leadership apprised him that even without Pakistan's asking, the Chinese Vice Premier and State Counselor for Foreign Affairs, who attended the recent China-US Strategic and Economic Dialogue in Washington DC, had urged the US to respect Pakistan's sovereignty and territorial integrity; to recognize Pakistan's sacrifices in the war against terror; and to help Pakistan in its fight against terrorism and extremism, and give it complete support.

The Prime Minister apprised the Cabinet about his affirmation to the Chinese leadership that Pakistan would never allow its territory to be used to attack any country and would continue to support international counter-terrorism cooperation.

Before the start of formal proceedings of the Cabinet meeting, Fateha for late Hakim Ali Zardari, a seasoned politician was offered. The Cabinet also offered Fateha for all those who embraced Shahadat in the recent attack on PNS Mehran, CID Station Peshawar and District Administration Offices in Hangu.

Anti-Americanism not to make Pak's problems disappear

Anti-Americanism not to make Pak's problems disappear
ISLAMABAD: US Secretary of State Hillary Clinton Friday said Pakistan should understand that anti-Americanism and conspiracy theories will not make problems disappear.

Talking to media in Islamabad Hillary Clinton said that her visit was especially important because relation between Pakistan and US have reached a turning point.

"Osama bin Laden is dead but al Qaeda and his syndicate of terror remain a serious threat to us both," Clinton said.

She said, "we look to the government of Pakistan to take decisive steps in the days ahead."

Clinton said Pakistani officials had told her "someone, somewhere" had been providing support for bin Laden in Pakistan, but reiterated there was no evidence of any sort of complicity by senior government officials.

"This particular relationship with Pakistan is too critical and now is too critical a time to allow whatever differences we may still have with one another impede the progress we must still make together," Mullen told the news conference.

"I harbour no illusions about the difficulties ahead, nor do I leave here misinformed about the trust which still needs to be rebuilt between our two militaries.

Mumbai pull off thrilling win over Kolkata

Mumbai pull off thrilling win over Kolkata
KOLKATA: Ambati Rayudu smashed a last-ball six as Mumbai Indians pulled off a thrilling five-wicket victory over Kolkata Knight Riders in the Indian Premier League on Sunday.

Mumbai needed 21 to win off the last over to surpass Kolkata's 175-7, but New Zealander James Franklin (45 not out off 23 balls) hit paceman Lakshmipathy Balaji for 17 off the first five balls before Rayudu finished the game.

South African Jacques Kallis top-scored with 59 and seamer Rajat Bhatia took three wickets for Kolkata.

In another match, Chris Gayle cracked an unbeaten 75 as Royal Challengers Bangalore topped the points table with an eight-wicket win over Chennai Super Kings.

The West Indies opener hit six sixes in his 50-ball knock as Bangalore surpassed Chennai's total of 128-8 with two overs to spare in their last league match of the Twenty20 tournament.

Bangalore (19 points), Chennai (18), Mumbai (18) and Kolkata (16) have qualified for the play-offs.

Gayle, who added 80 for the second wicket with Virat Kohli (31), finished the match when he hit spinner Suresh Raina for 11 runs off the last three balls of the 18th over.

Chennai skipper Mahendra Singh Dhoni hit six sixes in his explosive 40-ball 70 not out but received little support from the other end, the highest stand of the innings being 42 for the fifth wicket.

Chennai made a poor start after being put in to bat as they lost four wickets for 22 runs in the opening six overs, with left-arm paceman Zaheer Khan dismissing Australian Michael Hussey and Raina in successive overs.

Hussey could make just four runs before inside-edging a Zaheer devliery on to the stumps while Raina was caught by Kohli at point.

New Zealand left-arm spinner Daniel Vettori put more pressure on Chennai when he removed Subramaniam Badrinath and West Indies all-rounder Dwayne Bravo to eventually finish with 2-15 off four overs.

Brief scores:
Kolkata Knight Riders 175-7 in 20 overs (J. Kallis 59, Yusuf Pathan 36, M. Tiwary 35; A. Nechim 2-32, J. Franklin 2-35) lost to Mumbai Indians 178-5 in 20 overs (J. Franklin 45 not out, S. Tendulkar 38, Harbhajan Singh 30; R. Bhatia 3-22) by five wickets.

Sri Lanka reject Pakistan tour on security

Sri Lanka reject Pakistan tour on security
COLOMBO: Sri Lanka Cricket on Tuesday turned down an invitation by Pakistan to return to the troubled nation, saying security was still a problem two years after its players were attacked there.

"We are not going to send our team to Pakistan," Sri Lanka Cricket chairman D.S. de Silva said. "I have asked the secretary to inform the Pakistan Cricket Board today (Tuesday) of the decision.

"We have instead requested Pakistan to host the matches in Colombo or at a neutral venue like Dubai or Abu Dhabi," he said.

The Pakistan Cricket Board announced at the weekend that they had invited Sri Lanka to play three Tests, five one-day internationals and one Twenty20 game in a series proposed for October.

"The circumstances, with regards to security, don't allow us to play matches there. Even the ICC (International Cricket Council) has not given us security clearance," de Silva said.

Sri Lanka ex-skipper Mahela Jayawardene told the London-based Guardian newspaper on Tuesday that he still carries scars from the attack in Lahore in which militants shot at the Sri Lankan team bus in March 2009.

Eight people were killed and seven Sri Lankan players were wounded, including their assistant coach.

"I still get flashbacks," he told the Guardian. "At first, the guys were saying, 'Why would anyone let off crackers at eight in the morning?' But then someone shouted: 'No, they're shooting at us, get down.'"

Sri Lanka Cricket secretary Nishantha Ranatunga had reacted cautiously on Monday to the invitation, saying they were awaiting clearance from Sri Lankan security authorities before responding.

Pakistan have been forced to play "home" series in the United Arab Emirates, England and New Zealand.

On Monday, Afghanistan became the first foreign squad to arrive in Pakistan since the attack on the Sri Lankan players. The Afghans will take on a second-string Pakistani national team in a three-match series.

Pakistan level Test series against West Indies

Pakistan level Test series against West Indies
BASSETERRE: Pakistan beat West Indies by 196 runs on the fifth day of the second test Tuesday to draw their two test series 1-1.

Slow left-armer Abdur Rehman finished with figures of 4-65 as West Indies, resuming on 130for five and needing to bat through the day to win the series, were bowled out for 230 before lunch.

Off-spinner Saeed Ajmal did the damage with the key wickets of Brendan Nash (30), skipper Darren Sammy (41) and Ravi Rampaul (20).

It was always going to be too much for West Indies to bat through the day having already lost their top order but it was a sorry end to their innings when Kemar Roach was run out for12.

Any chance of resistance dissipated when Nash edged Ajmal to Taufeeq Umar at slip and then Baugh became the latest in a series of West Indies batsmen to fall lbw to Rehman.

Sammy was caught at midwicket off a dreadful shot off Ajmal and although Rampaul showed some defiance, it ultimately proved futile.

Once again West Indies struggled against spin, which will give great heart to their upcoming opponents India who begin their tour of the Caribbean next month.

Pakistan, who won the five-match one day international series earlier in the tour 3-2, took full advantage of poor West Indian fielding in their second innnings which saw centuries for Taufeeq Umar and skipper Misbah-ul-Haq.

Misbah was delighted with the way his team, who are still unable to play home tests due to the security situation, coped and performed on the tour.

"I am really proud of this bunch of guys and their fighting spirit. Catching was one of our failings in the first test but we turned it around here and it was the big difference between the two teams," he said.

"I am happy, I am performing well and it feels good to lead from the front. We hope we will be able to play on our home grounds soon but we are getting exposure outside and becoming a better team in the process," he said.

For West Indies, who have blooded young opening batsmen Lendl Simmons and Kraigg Brathwaite with little success in this test, the debate will restart over selection choices for the India series, with ex-skipper Chris Gayle's position still unclear.

The optimism generated by the first test victory in Guyana was short-lived and Sammy highlighted a familar problem.

"We have not been able to be consistent with the bat or ball. We have some work to do. India is going to be a tough series but we are looking forward to it," he said.

Oil up in Asian trade after rise in US equities

Oil up in Asian trade after rise in US equities
SINGAPORE: Oil rose in Asian trade Thursday, tracking gains in US equities markets, analysts said, while dealers seemed to ignore data showing a surge in stockpiles.

New York's main contract, light sweet crude for July delivery, gained 36 cents to $101.68 a barrel, while Brent North Sea crude for the same month was up 30 cents to $115.23.

"The WTI was $1.73 higher (in New York late Wednesday), settling at $101.32, which was a two-week high because the equity market was high," said Shailaja Nair, a Singapore-based Platts analyst.

US stocks posted modest gains Wednesday, snapping a three-day losing streak, despite disappointing manufacturing data from the US, the world's largest economy and number one oil consumer.

A bearish report from the Department of Energy (DoE) Wednesday that showed US crude stocks rose 600,000 barrels in the week to May 20 appeared to have a muted impact on sentiment.

The weekly DoE report also said US gasoline inventories jumped 3.8 million barrels in contrast to predictions of a drop.

Gasoline figures are being closely watched ahead of the peak-demand US driving season in the starting next week, when many Americans begin hitting the road for their summer holidays.

Some analysts think higher prices have forced consumers to cut their fuel use.

Natixis analyst Nic Brown pointed out that it was the fourth week in a row of weak US demand for oil products -- with demand off four percent from a year earlier.

"Volatility remains high and sentiment is constantly shifting," said Michael Fitzpatrick of the Kilduff Report.

Prices had been given a lift by reports Tuesday from Goldman Sachs and Morgan Stanley in which they raised their 2012 forecasts for Brent to around $130 a barrel.

Asian shares up on Wall St rise, bargain buying

Asian shares up on Wall St rise, bargain buying
HONG KONG: Asian markets began the day on a high Thursday as dealers picked up undervalued stocks following a recent sell-off while the first gain for the Dow in three days also provided some support.

Tokyo was 1.29 percent higher by the break, Sydney gained 1.10 percent, Hong Kong opened 0.58 percent stronger while Shanghai added 0.72 percent and Seoul jumped 1.23 percent.

"Asian markets are opening stronger, and we expect it to be a risk-on day in the region," Credit Agricole said in a note to clients, according to Dow Jones Newswires.

The rallies followed a Dow gain of 0.31 percent on Wednesday.

Resource firms were among those leading the gains as commodity prices began to rise, with oil rallying after Goldman Sachs and Morgan Stanley raised their 2012 forecasts for the cost of Brent to $130 a barrel.

The rises also came despite a surprising 600,000-barrel increase in US crude stockpiles in the week to May 20, confounding analyst expectations of a fall.

New York's main contract, light sweet crude for July delivery, gained 36 cents to $101.68 a barrel, while Brent North Sea crude for the same month was up 30 cents to $115.23.

Crude was also given a fillip by gains in equity markets, which indicated improving sentiment.

The gains came after big losses in recent sessions caused by worries over the European debt crisis and data from China suggesting the world's number two economy was beginning to ease.

In the eurozone the Greek debt crisis continues to unsettle after sharp exchanges between the European Central Bank, which opposes any restructuring of its obligations, and politicians hoping to find some way out of an impasse.

The downgrading of Athens' debt rating by Fitch on Friday, the downgrading of Italy's outlook by Standard & Poor's and rising concern over Spain's economy have also brought the European crisis back into focus.

However, despite the debt woes the euro rose in early trade after Wang Yong, a professor at the People's Bank of China's training institute, said Beijing should expand purchases of eurozone sovereign debt.

He also said China should increase direct investment into Europe. Such moves would help alleviate the global crisis, he added.

The comments sent the euro up to $1.4136 from $1.4083 late Wednesday in New York and to 115.86 yen from 115.40.

The dollar was worth 81.96 yen, up from 81.89 yen in New York.

Shanghai rose after a five-day sell-off caused by economic worries that were magnified by data showing a preliminary HSBC Purchasing Managers Index had slipped to a 10-month low, pointing to a slowdown in manufacturing.

In Tokyo, office equipment and camera maker Ricoh jumped 4.5 percent on a report in the Nikkei business daily that it was planning to sack 10,000 people worldwide as it tries to streamline.

Gold opened in Hong Kong at $1,525.00-$1,526.00 per ounce, up from Wednesday's close of $1,523.00-$1,524.00

Euro firms on China scholar's investment comment

Euro firms on China scholar's investment comment
TOKYO: The euro firmed during Asian trade Thursday after a Chinese scholar published a media commentary arguing that Beijing should expand purchases of euro-zone sovereign debt.

Investors flocked to the single currency after Wang Yong, a professor at the People's Bank of China's training institute, wrote in his piece that China should also increase direct investment into Europe.

For China, such moves should both help alleviate the global crisis and contributes to "counter-protectionism strategy," giving Beijing more leverage to negotiate for concessions in trade talks, Wang wrote.

The piece triggered buying of the euro, which jumped to $1.4136 and 115.86 yen from $1.4083 and 115.40 yen in New York Wednesday.

Still, traders said the Greek debt concerns should limit the euro's gains as investors remained cautious amid uncertainty about how the fiscally-strapped nation's problems could be resolved.

"While we continue to see a market- and euro-friendly outcome (on Greece) as the most likely on a multi-week view, political risks make a further euro/dollar breakdown very real," BNP Paribas analysts said in a note to clients.

The euro's gain was also magnified in part due to thin trading in Asia, traders said.

The dollar was at 81.96 yen, nearly flat from 81.89 yen in New York.

Ariz. shooting suspect mentally incompetent

Ariz. shooting suspect mentally incompetent
TUCSON: The man accused of wounding Rep. Gabrielle Giffords in a deadly rampage lowered his head to within inches of the courtroom table Wednesday. When he lifted it, he began yelling, angry and loud.

Federal marshals had to drag Jared Lee Loughner out of the packed federal courtroom. Minutes later, he was in a nearby room and, over a closed-circuit TV, could watch as U.S. District Judge Larry Burns declared him incompetent to stand trial.

Mental health experts concluded that the 22-year-old college dropout suffers from schizophrenia.

Burns ordered Loughner to a federal facility in Missouri for up to four months, where doctors will try to give him enough treatment to bring him to a point where he understands the case against him.

Loughner spent five weeks in March and April at the federal facility in Springfield, Mo., where he was examined by psychologist Christina Pietz and psychiatrist Matthew Carroll. The two were asked to determine if Loughner understands the consequences of the case.

Burns viewed 18 hours of the experts' videotaped interviews with Loughner. He said the experts' reports and videos were confidential, but he summarized their findings at the hearing.

The judge said Carroll concluded Loughner's mental health has declined in the past two or three years and his thinking on legal issues is confused. Carroll believes Loughner doesn't grasp the gravity of the charges and is instead fixated on inconsequential issues.

Pietz concluded Loughner's thoughts are random and that he suffers from delusions, the judge said. She noted Loughner gave nonsensical answers to questions and doesn't understand the role of judges or jurors.

Neither expert thought Loughner was faking his mental health problems, with one of the therapists saying Loughner doesn't want to be perceived as mentally ill. A hearing to revisit Loughner's mental competency is set for Sept. 21.

Loughner has pleaded not guilty to 49 federal charges stemming from the shooting, which wounded Giffords and 12 others and killed six people, including a 9-year-old girl and a federal judge.

Prosecutors had requested the mental exam, citing a YouTube video in which they believe a hooded Loughner wore garbage bags and burned an American flag.

The judge gave the two experts access to Loughner's health records from his pediatrician, a behavioral health hospital that treated him for extreme intoxication in May 2006 and an urgent care center where he was treated in 2004 for unknown reasons.

Prosecutor Wallace Kleindienst said that Loughner will be sent to the Missouri facility in the next few days.

Loughner will stay there for up to four months, and doctors will seek to medicate him to see if he improves, Kleindienst said. He added he didn't know if Loughner would agree to be medicated.

If Loughner is later determined to be competent enough to understand the case against him, the court proceedings will resume.

If he isn't deemed competent at the end of his treatment, Loughner's stay at the facility can be extended. There are no limits on the number of times such extensions can be granted.

Ammunition store blast kills 28 in Yemeni capital

Ammunition store blast kills 28 in Yemeni capital
SANAA: An ammunition store belonging to the powerful Al-Ahmar tribe has exploded in the Yemeni capital Sanaa killing 28 people, the defence ministry's 26sep.net news website said on Wednesday.

"Twenty-eight people were killed in an explosion at an ammunition store belonging to Hamid al-Ahmar" in Sanaa, 26sep.net said in a text message.