Asia Day Ahead: Rio Said to Consider Alternatives to Chinalco

June 5 (Bloomberg) -- U.S. stocks rose for a fifth time in six days as analysts recommended buying bank shares and higher oil prices boosted energy producers, outweighing a slump in retailers following disappointing May sales. Rio Tinto Group, the third-largest mining company, is considering a plan to raise as much as $15 billion in a stock sale after rejecting an investment from Aluminum Corp. of China, two people involved in the talks said. TOP STORIES/MOST READ ON BLOOMBERG David Carradine, Star of TV’s ‘Kung Fu,’ Dies at 72 David Carradine , whose starring role in the television series “Kung Fu” made him a self-described evangelist for the martial arts on screen and in life, has died. He was 72. Brazil Navy Recovers First Pieces of Air France Plane Brazil’s navy today retrieved the first pieces of the Air France plane that disappeared three days ago over the Atlantic Ocean with 228 people aboard. U.S. Mortgage Rates Jump to Highest Since December Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserve’s plan to lower borrowing costs has stalled. Rio Tinto Said to Consider $15 Billion Stock Sale Rio Tinto Group, the third-largest mining company, is considering a plan to raise as much as $15 billion in a stock sale after rejecting an investment from Aluminum Corp. of China, two people involved in the talks said. MAIN ECONOMIC RELEASES TODAY South Korea’s Revised First-Quarter Gross Domestic Product Australia’s Performance of Construction Index for May Is Due Philippines Consumer Prices Seen Rising 3.7% in May Vs Year Ago Taiwan’s Consumer Prices Seen Dropping 0.3% in May From Year Ago Thailand Releases 1st-Qtr Jobless Rate; Unemployment Forecasts MAIN ANALYST UPGRADES/DOWNGRADES *PANASONIC CUT TO ‘EQUALWEIGHT’ AT BARCLAYS *SONY RAISED TO ‘OVERWEIGHT’ AT BARCLAYS *ARCELORMITTAL CUT TO ‘HOLD’ FROM ‘BUY’ AT GILISSEN *MAZDA RAISED TO ‘BUY’ AT NIKKO CITI *LAND & HOUSES CUT TO ‘NEUTRAL’ BY CREDIT SUISSE ASIAN MARKETS The Nikkei 225 futures contract due in June rose 40 points to 9,740. The Hang Seng Index futures for June gained 6 to 18,343. The S&P/ASX 200 Index futures contract due in June advanced 10 to 3,959 at 6:59 a.m. in Sydney. U.S. Stocks Gain as Banks, Energy Shares Advance; Oil Rallies U.S. stocks rose for a fifth time in six days as analysts recommended buying bank shares and higher oil prices boosted energy producers, outweighing a slump in retailers following disappointing May sales. Treasuries Fall as Claims Drop Suggests Worst of Slump Ending Treasuries fell for the first time in three days after a government report showing the decline in the labor market may be stabilizing raised speculation the worst of the worst of the recession may be over. Euro Rises Against Yen, Pound as Trichet Sees Recession Easing The euro rose against the yen and pound after European Central Bank President Jean-Claude Trichet said he sees signs the worst of the recession has passed. European Stocks Decline for Third Straight Day; Rio Tinto Sinks European stocks fell for a third day after the European Central Bank left its benchmark interest rate unchanged and ECB President Jean-Claude Trichet indicated the bank has no immediate plans to increase its asset-purchase plan. European Bonds Drop as Trichet Says Slump May Ease This Year German government bonds fell the most in two months after European Central Bank President Jean-Claude Trichet said interest rates are “appropriate” and the worst of the recession in the 16-nation economy may have passed. Gold Jumps on Dollar Slide, Inflation Concern; Platinum Surges Gold prices rose on speculation that the slumping dollar will spur inflation, boosting the appeal of precious metals as a hedge. Platinum surged more than $55 an ounce to the highest since September. Oil Rises to 7-Month High, Gasoline Surges, on Goldman Forecast Crude oil rose to a seven-month high and gasoline surged after Goldman Sachs Group Inc. said prices may reach $85 a barrel by the end of the year as demand recovers and supplies shrink. HIGHLIGHTS FROM NEWSPAPERS India Seeks Details About Bharti-MTN Merger Proposal, PTI Says India’s government has sought details on Bharti Airtel Ltd.’s proposed plan to combine with South Africa’s MTN Group Ltd., the Press Trust of India reported, citing Corporate Affairs Minister Salman Khursheed. Hybrid Vehicles Had 12% of Japan New Car Sales, Nikkei Reports Hybrid vehicles accounted for 12 percent of new car sales in Japan in May, Nikkei English News reported, citing data from the Japan Automobile Dealers Association.