Japan Q1 output gap +0.7 pct--govt report

(Reuters) - The report, written by a Cabinet Office official, said the
output gap turned positive for the second straight quarter and
widened from plus 0.5 percent in October-December 2006.




It is the first time since October-December 1996/
January-March 1997 that the output gap has shown a positive
reading for two quarters in a row.


Read more at Reuters.com Economic News

South Korea's Kospi Rises to Record High; Kookmin Bank, Shinhan Lead Gains

(Bloomberg) -- South Korean stocks advanced, pushing
the Kospi index to a record. Kookmin Bank and Shinhan Financial
Group Ltd. rose after Deutsche Bank AG said they were ``regaining
loan growth momentum.''

``Banks are catching up after missing out on the market's
recent gains,'' said Choi Chang Hoon, who manages about $800
million at Woori Credit Suisse Asset Management Co. in Seoul.
``The feeling is spreading that banks' earnings will be more
stable than previously expected.''


Read more at Bloomberg Stocks News

Gold Prices Trade Near Two-Month Low Amid Speculation Dollar to Strengthen

(Bloomberg) -- Gold prices in Asia were little
changed near a two-month low amid speculation the dollar will
strengthen further against the euro, reducing the appeal of the
precious metal as an alternative investment. Silver fell.

Gold generally moves in the opposite direction to the
dollar which last week gained to a six-week high against the
euro. Gold, which traded at a two-month low of $652.01 on May 24,
has risen 3 percent so far this year as the dollar dropped 1.9
percent against the euro.


Read more at Bloomberg Commodities News

Japanese 10-Year Bond Yield at Highest Since February as Stocks Rebound

(Bloomberg) -- Japan's 10-year bond yields held near
the highest since February after the Nikkei 225 Stock Average
rebounded from the biggest decline in a month.

Two-year yields were at the highest since 1997 before reports
this week that are forecast to show Japanese industrial production
rose and U.S. hiring increased. Signs of faster growth in the
world's two biggest economies may encourage the Bank of Japan to
raise interest rates again this year.


Read more at Bloomberg Bonds News

Copper Prices Rise by Maximum in Shanghai on Declining Global Stockpiles

(Bloomberg) -- Shanghai copper prices rose by the
daily limit following a drop in stockpiles and signs of continued
demand from China, the world's biggest user of the metal.

Global inventories of copper in warehouses monitored by the
London Metal Exchange fell for the sixth day, by 1.5 percent to
134,125 metric tons, the lowest since Oct. 31, the exchange said
on May 25. Shanghai exchange stockpiles fell 0.5 percent from a
three-year high in the past week, easing concern that China may
be oversupplied with the metal, used in wires and pipes.


Read more at Bloomberg Commodities News

Australian Mining Stocks Rise, Led by BHP Billiton; James Hardie Declines

(Bloomberg) -- Australian mining stocks rose, led by
BHP Billiton Ltd. and Rio Tinto Group after prices of metals
including copper and zinc gained, and amid speculation of mergers
and acquisitions in the mining industry.

James Hardie Industries NV declined after fourth-quarter
earnings fell as rising costs crimped profit margins in its home
market of Australia.


Read more at Bloomberg Stocks News

Crude Oil Drops on Speculation Rising U.S. Gasoline Output Will Cut Prices

(Bloomberg) -- Crude oil fell in New York on
speculation U.S. fuel prices may ease as refiners increase
output to meet summer demand.

U.S. gasoline production in the week ended May 18 rose to
the highest since December, increasing inventories for a third
week. Stockpiles that week were 7 percent below the five-year
average, according to Energy Department data.


Read more at Bloomberg Commodities News