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Sep 11, 2012

DealBook | DealB%K Afternoon Edition -September 11, 2012-.


TOP STORY
Gregory J. Fleming leads Morgan Stanley Smith Barney, which is owned by Citigroup and Morgan Stanley.
Morgan Stanley Set to Buy Full Control of Smith Barney Business After reaching an agreement with Citigroup, Morgan Stanley is now poised to buy full control of the two banks' brokerage joint venture. The agreement to value Morgan Stanley Smith Barney at $13.5 billion goes a long way toward fulfilling Morgan Stanley's effort to turn itself around and mute the risks of its trading business. The two banks agreed to the valuation of the brokerage business on Monday afternoon, after the investment bank Perella Weinberg Partners submitted its own appraisal of Morgan Stanley Smith Barney's worth, according to people briefed on the matter. The value submitted by Perella Weinberg was lower than $13.5 billion, one of these people said.
  • DEALBOOK »
  • DEALBOOK HIGHLIGHTS
    Dimon Defends Big Banks Saying that the United States has the best capital markets in the world, the JPMorgan chief cautioned on regulatory reform: "Let's make sure we keep that before we do a bunch of stupid stuff that destroys that."
    In Debt: Too Much Protection for Derivatives in Bankruptcy Stephen J. Lubben says that several courts have lately been expanding the already broad protections that derivatives and repo contracts enjoy.
    Legg Mason's Chief Executive Steps Down The asset management firm Legg Mason said it would search for a new leader after its chairman and chief executive, Mark R. Fetting, decided to step down amid struggles to turn around performance and retain client money.
    Deutsche Bank Chiefs Outline Overhaul Plan At a presentation, Jürgen Fitschen and Anshu Jain described Deutsche Bank's shortcomings and promised to take remedial steps like delaying bonuses for top managers as they sought to cut costs by $5.8 billion a year.
    BlackRock Fined $15.2 Million by British Regulator The Financial Services Authority of Britain has fined BlackRock for failing to follow rules governing the protection of its clients' money.
    Qatar Holding Makes Glencore Wait on Revised Xstrata Bid The sovereign wealth fund Qatar Holding says it has yet to decide whether to support Glencore International's increased all-share offer for the mining giant Xstrata.
    BUZZ TRACKER
    Occupy Hong Kong Protesters Removed Bailiffs and police spent six hours on Tuesday evicting Occupy Hong Kong demonstrators from the street-level plaza beneath the Asian headquarters of HSBC, where they had camped for nearly a year, Keith Bradsher reports in The New York Times.
     
    LOOKING AHEAD
    Economic Reports The data released on Wednesday will include import prices for August and wholesale trade for July.
    In the United States On Wednesday, Apple will hold an event in San Francisco at which it is expected to announce the latest version of the iPhone, and the Commodity Futures Trading Commission will consider proposed rules to enhance protection of customer funds.
    Overseas On Wednesday, the president of the European Commission, José Manuel Barroso, will deliver his annual state of the union speech to the European Parliament, and Germany's federal constitutional court will rule on Europe's permanent bailout fund.
    DealBook Video
    Business Day Live: In Standoff, Latest Sign of Unions Under Siege
    Business Day Live: In Standoff, Latest Sign of Unions Under Siege What the teachers' strike in Chicago means for organized labor. | Morgan Stanley's showdown with Citigroup over a brokerage.

  •  

NYT Afternoon Update -September 11, 2012-: Israeli Leader Sharpens Call on U.S. to Set Limits on Iran

The New York Times
September 11, 2012

Afternoon Update



TOP NEWS

Israeli Leader Sharpens Call on U.S. to Set Limits on Iran

By ISABEL KERSHNER and RICK GLADSTONE
Prime Minister Benjamin Netanyahu of Israel criticized the Obama administration on Tuesday over recent statements that the United States would not set deadlines for Iran to halt its uranium enrichment activities.

U.S. Missile Defense Strategy Is Flawed, Expert Panel Finds

By WILLIAM J. BROAD
Scientists and military experts working for the National Research Council are critical of the Obama administration's strategy and suggest changes to the United States' antimissile system.

Talks Continue in Chicago Teachers' Strike

By MONICA DAVEY and STEVEN YACCINO
In negotiations, teacher evaluations appear to be the most difficult issue to resolve.

China Accuses Japan of Stealing Disputed Islands

By JANE PERLEZ
The charge comes after Japan bought the islands in the East China Sea for nearly $30 million from private owners.

At Humboldt State, Football Worth the Price

By MATT KRUPNICK
Humboldt State has held on to its football program while some other similar California colleges have folded theirs, giving residents in and around Arcata reason to cheer.
U.S.

Video: TimesCast Politics | Sept. 11, 2012

The Romney campaign post-conventions. | A Chicago teacher strike goes national. | Bill Clinton returns to the campaign trail. | Senate race updates.
Opinion

Opinionator | Me, Myself and Math

Singular Sensations

By STEVEN STROGATZ
In the first installment of a new series on math: cowlicks and other singularities, plus the topology of fingerprints.
BUSINESS
DealBook

Morgan Stanley and Citigroup Reach Deal on Smith Barney

By MICHAEL J. DE LA MERCED
Morgan Stanley and Citigroup agreed to value their brokerage joint venture, Morgan Stanley Smith Barney, at $13.5 billion, allowing Morgan Stanley to buy full control of the business at a favorable valuation.

Health Care Premiums Rise Modestly, Report Says

By REED ABELSON
A study by the Kaiser Family Foundation found that a family with employer-provided health insurance now pays just under $16,000 in annual premiums, an increase of about 4 percent over a year ago.

Whistle-Blower Awarded $104 Million by I.R.S.

By THE ASSOCIATED PRESS
The payment to an ex-banker for providing information about overseas tax cheats was the largest amount ever given by the agency.
DealBook

Deutsche Bank Chiefs Outline Overhaul Plan

By JACK EWING
At a presentation, Jürgen Fitschen and Anshu Jain described Deutsche Bank's shortcomings and promised to take remedial steps like delaying bonuses for top managers as they sought to cut costs by $5.8 billion a year.
Bits Blog

GoDaddy Says Its Troubles Were Not Hacker-Related

By NICK BILTON
GoDaddy, the Web services company, said that its extensive technical problems on Monday were a result of internal issues, not an attack by a supporter of Anonymous, the loose confederation of rogue hackers.

U.S. stocks end higher; Dow at highest since 2007: Stocks and Markets in the News | Wall Street at Close Report - MarketWatch September 11, 2012.

By Kate Gibson, MarketWatch 

NEW YORK (MarketWatch) — U.S. stocks climbed Tuesday, as optimism among investors ahead of decisions by a German court and the Federal Reserve fueled a rise in the Dow industrials to their highest finish in nearly five years. 

“There’s a bit more sense of hope right now, but it’s cautious optimism,” said Robert Pavlik, chief market strategist at Banyan Partners, citing potential central-bank moves for bolstering the global economy. 


Burberry warns of luxury slowdown Burberry's surprise warning of slower sales could signal the end of the luxury sector's immunity to the global economic downturn. 

Up for a fourth session out of the past five, the Dow industrials DJIA +0.52%  climbed 69.07 points, or 0.5%, to close at 13,323.36, with Bank of America Corp. BAC +5.24%  leading the gains that included 24 of its 30 components. It was the highest closing level for the index since December 2007. 

The S&P 500 Index SPX +0.31%  rose 4.48 points, or 0.3%, to 1,433.56, with energy and financials pacing the gains and utilities and consumer staples the worst performers of its 10 industry groups. 

“The consistent market strength since this rally launched in June continues to convert sideline sitters to bulls and the pre-existing bulls are raising their targets,” Elliot Spar, market strategist at Stifel Nicolaus, wrote in an afternoon note. He’s advising patience and putting money to work on any S&P 500 pullbacks in the 1,400 to 1,397 range. 

The Nasdaq Composite Index COMP +0.02%  closed at 3,104.53, up 0.51 point, or 0.02%, well off the session’s high as shares of Apple Inc. AAPL -0.32%  fell 0.3% a day before its expected new iPhone launch. Read more on Apple. 
 
For every stock on the decline, more than two rose on the New York Stock Exchange, where nearly 667 million shares traded. Composite volume neared 3.5 billion.

Red flag

In a statement Tuesday, Moody’s Investors Service said the United States stands to lose its top credit rating unless lawmakers reach an agreement to cut the amount of debt relative to gross domestic product in budget talks next year. 

The ratings company is putting Congress on notice that it has to “at least put the car in a gear and start moving toward some type of negotiation to reach some sort of compromise. You have to react, you can’t just allow this to play out,” commented Pavlik. See Moody’s and S&P fighting last, wrong war. 
 
The dollar DXY 0.00%  fell against other currencies, including the euro EURUSD -0.02% , which hit a four-month high after the Moody’s warning. Treasury prices fell, with the yield on the 10-year note 10_YEAR +0.06%  rising to 1.693%. Read more on bonds. 
 
Oil prices rose, with the futures contract for October delivery CLV2 -0.42%  rising 0.7% at $97.17 a barrel on the New York Mercantile Exchange. Read more on oil. 
 
Gold futures GCZ2 +0.04%  added $3.10 to finish at $1,734.90 an ounce. Read more on metals.
Germany’s highest court said it would rule Wednesday on whether to let the nation ratify the European Stability Mechanism, rejecting a lawmaker’s appeal that it postpone the decision after the European Central Bank commits unlimited funds to buy the bonds of troubled euro-area members. 

“I suspect it will be ruled as legal,” said Pavlik, echoing the consensus view of market participants.
The Federal Open Market Committee on Wednesday begins a two-day session on methods to stimulate the economy, with the Fed at the very least expected to extend the record-low rate for Fed funds and at most to signal a third round of monetary easing. 

“If they decide to reference lower rates for an extended period of time, that’s factored in,” Pavlik pointed out. “If they initiate some type of quantitative easing with Treasurys or mortgage-backed securities, that is not completely priced in.” 

Kate Gibson is a reporter for MarketWatch, based in New York.
 

Money Show Traders Daily Alert September 11, 2012 The Right Way to Find Entry and Exit Points

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How to Use CCI to Trade FX, Walker England

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Trading the COT Report, John Person

Money Show Investors Daily Alert: Japan Is Surprising to the Upside

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Jim Jubak on MoneyShow.com

Today's Top Pros' Top Picks

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Today's Featured Videos & Exclusive Interviews
Investing Around Volatility, Kelley Wright

BIV Business Today News -September 11, 2012-: Capital investment in Southwest B.C. jumps by $7b: report




Mining and Energy

Teck admits to polluting Columbia River

In the midst of legal proceedings, Teck Metals Ltd. (TML) has admitted that its Trail, B.C., operations have polluted the Columbia River in the U.S.

Environment and Sustainability

 

Vancouver wants share of B.C. carbon tax dollars

Vancouver mayor Gregor Robertson wants Victoria to transfer an increasing share of provincial carbon tax revenue to municipalities for carbon-reducing projects.

Education and Research

SFU support workers readying for strike

Support workers at Simon Fraser University will take a strike vote between September 25 and 27 at the university’s three campuses after two years of talks have failed to result in a new collective agreement.

Transportation

 

Secrecy shrouds Harbour Air relocation to new flight terminal

Harbour Air has agreed to move to the new floatplane terminal at the Vancouver Convention Centre, in an undisclosed deal that NDP tourism critic Spencer Chandra Herbert believes will likely cost taxpayers money in rent subsidies.

Economy and Finance

Capital investment in Southwest B.C. jumps by $7b: report

The $1.4 billion Evergreen Line and the $8 billion Seaspan federal shipbuilding contract drove an increase in “proposed, underway, completed or on hold” capital investment in Southwest B.C. last year, according to a new report.

Asia Pacific

 

Western premiers host reception in China

B.C. Premier Christy Clark plans to co-host a New West Partnership reception today in Tianjin, China, along with Alberta Premier Alison Redford and Saskatchewan Premier Brad Wall, during the annual meeting of the World Economic Forum (WEF).

Banks push Europe stocks higher in late action: Stocks and Markets in the News | European Markets at Close Report - MarketWatch -September 11, 2012-.

By Sara Sjolin, MarketWatch 

LONDON (MarketWatch) A Wall Street rally gave Europe a late-session boost on Tuesday, with European stocks ending higher as expectations for further quantitative easing by the U.S. Federal Reserve later this week spurred risk appetite

The Stoxx Europe 600 index XX:SXXP +0.33% rose 0.3% to close at 272.58. The index traded in negative territory for most of the day before the U.S. open as caution remained ahead of a decision by the German Constitutional Court on the legality of the euro zone’s permanent rescue fund on Wednesday. 

“There are obvious event risks this week. The downside to the German Constitutional Court ruling is if it delays the implementation of the [European Stability Mechanism], and it’s interesting to see how many constraints they are going to impose,” said Jens Larsen, chief European economist at RBC Capital Markets. Read: Germany's top court to decide rescue fund's fate

“The ruling would not stop the ECB’s bond-buying plan, but it would lead to a lot of head scratching,” he said, referring to the European Central Bank. 

Burberry Group PLC UK:BRBY -20.87% BURBY -19.56% stole the spotlight among Tuesday’s biggest movers. The firm sank 21% to its lowest closing level since January 2011, after it said it expected adjusted profit before tax for the 12 months ending March 31 to come in at the lower end of market expectations.
Chief Executive Angela Ahrendts said in a news release that “the external environment is becoming more challenging. In this context, second quarter retail sales growth has slowed against historically high comparatives.” See: Burberry: Year adjusted net seen at low end 
 
Other luxury-oriented shares followed Burberry lower, albeit to a lesser degree. Hugo Boss AG DE:BOSS -8.36% dropped 8%, Christian Dior SA FR:CDI -4.09% lost 4.1% and LVMH Moët Hennessy Louis Vuitton FR:MC -3.36% fell 3.4%. 

PPR SA FR:PP -2.07% , owner of such brands as Gucci and Yves Saint Laurent, also dropped, its shares off 2.1%.

Event risk 

Nokia broadens apology over ads Nokia expanded its apology for using misleading marketing materials for a new line of phones. Last week Nokia acknowledged it didn't use the PureView camera of the Lumia 920 to shoot a portion of a video used in promotions. (Photo: Getty Images.) 

Beyond Wednesday’s German court ruling, attention will turn to the Federal Reserve, whose rate-setting committee concludes a two-day policy meeting on Thursday.
Hopes for another round of quantitative easing, in the form of large-scale bond buying, to boost the U.S. economic recovery increased on Friday, when fresh nonfarm-payrolls data signaled a sharp slowdown in job growth. 

“We believe that the weakness in key economic data and in particular the labor market has tilted the balance at the Fed in favor of a new purchase program,” analysts at Danske Bank said in a note. “We expect the Fed to announce an open-ended purchase program in which the Fed at each meeting considers whether to extend or end its purchases,” they added. 

U.S. stock were higher on Wall Street, on the heels of a bearish Monday session. The positive trends in the U.S. also pulled European stocks out of red territory in the afternoon, as banks moved higher. Read more. 

Movers

In Germany the DAX 30 index DX:DAX +1.34% jumped 1.3% to 7,310.11, as Deutsche Bank AG DE:DBK +4.44% DB +6.10% rallied 4.1%. New co-CEOs Anshu Jain and Juergen Fitschen said in a joint statement that Deutsche Bank will accelerate deleveraging by creating a noncore operations unit. See: Deutsche Bank to reduce risks 
 
Deutsche Lufthansa AG DE:LHA +2.60% added 2.7%, as the airline reported a 3.1% rise in the group’s August passenger volume. See: Lufthansa Group August passengers up 3.1% on year
E.ON AG DE:EOAN +1.43% and RWE AG DE:RWE +1.32% rose 1.7% and 1.4% respectively after Morgan Stanley upgrade the European utility sector to overweight. 

The French CAC 40 index FR:PX1 +0.89% also closed higher, up 0.9% to 3,537.30.
Drug maker Sanofi FR:SAN +2.56% SNY +3.44% advanced 2.6%, as it said it would publish efficacy results of clinical studies for a vaccine against dengue disease in the online version of medical journal the Lancet. 

Banks were also on the rise, with BNP Paribas SA FR:BNP +2.21% rising 2.2% and Credit Agricole SA FR:ACA +1.14% up 1.1%. 

Miners ranked among leading declining sectors, retreating from Monday gains on the back of economic-stimulus speculation in China. Metals prices were mostly higher. 

In London, shares of Vedanta Resources PLC UK:VED -2.44% retreated 2.4%, Anglo American PLC UK:AAL -2.32% fell 2.3% and Kazakhmys PLC UK:KAZ -1.24% fell 1.2%.
More broadly, the FTSE 100 index UK:UKX -0.02% closed slightly lower at 5,792.19, also weighed by the loss from Burberry. 

Sara Sjolin is a MarketWatch reporter, based in London.
 

ADVFN III World Daily Markets Bulletin -September 11, 2012-.

ADVFN III World Daily Markets Bulletin  
Daily world financial news

Tuesday, 11 September 2012

US Market Reports
Stocks Mostly Higher Amid Optimism About Further Stimulus
9/11/2012 11:06 AM ET
With traders expressing optimism about further monetary stimulus, stocks are mostly higher in late morning trading on Tuesday. The major averages have rebounded after ending the previous session firmly in negative territory.
The strength on Wall Street comes as traders look ahead to the Federal Reserve's upcoming monetary policy meeting. Many expect the central bank to announce a third round of quantitative easing to stimulate the sluggish economy.
Nonetheless, buying interest remains relatively subdued amid uncertainty about the outcome of the meeting as well as the German Federal Constitutional Court's ruling on a request for a temporary injunction against Europe's permanent bailout fund.
Steel stocks have moved sharply higher on the day, with the NYSE Arca Steel Index advancing by 2 percent. With the gain, the index is on pace to end the day at its best closing level in a month.
Considerable strength has also emerged among computer hardware stocks, as reflected by the 1.8 percent gain being posted by the NYSE Arca Computer Hardware Index. Logitech has helped to lead the sector higher, surging up by 5.7 percent.
Gold, natural gas, and oil stocks are also posting notable gains, moving higher along with their associated commodity prices.
The major averages have moved to the upside in recent trading, with the Dow and the S&P 500 reaching new highs. The Dow is up 88.62 points or 0.7 percent at 13,342.91, the Nasdaq is up 10.45 points or 0.3 percent at 3,114.47 and the S&P 500 is up 6.97 points or 0.5 percent at 1,436.05.

Canadian Market Report
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TSX Edges Up Amid Cautious Trade - Canadian Commentary
9/11/2012 11:23 AM ET
Canadian stocks were hovering in the green Tuesday morning as traders await cues from the the FOMC meeting and a verdict by the German constitutional court on the ESM due on Wednesday. Meanwhile, today's data out of Canada revealed the nation had its biggest trade deficit on record in the month of July.
The S&P/TSX Composite Index was up 27.82 points or 0.23 percent to 12,243.25, a day after snapping its four session winning streak.
The Diversified Materials Index gained over 1 percent, with Teck Resources adding nearly 3 percent. Inmet Mining was up close to 2 percent..
The price of Crude oil edged up Tuesday morning as traders await cues from the the FOMC meeting and a verdict by the German constitutional court on the ESM due on Wednesday. Meanwhile, the Organization of Petroleum Exporting Countries in its monthly oil market report, said it still expects supply from other oil producers to outpace the rise in global demand next year by a small margin, highlighting the downside risks to demand due to contagion from the euro zone crisis.
Crude for October added $0.36 to $96.90 a barrel.
Celtic Exploration rose over 2 percent, while Tourmaline Oil and Imperial Oil were adding around 1 percent each.
The price of gold was ticking higher Tuesday morning as the U.S. dollar was moving lower versus a basket of currencies ahead of FOMC outcome. Also, traders await a key ruling from a German court on the legality of the euro zone bailout fund. gold for December gained $4.50 to $1,736.30 an ounce.
Among gold plays, Eldorado gold and Allied Nevada gold were up around 2 percent each.
Meanwhile, financial stocks were trading lower, with Fairfax Financial Holdings and TD Bank losing around 1 percent each.
Royal Bank announced changes to its business segments, effective October 31. RBC's business segments for financial reporting purposes will be: Investor & Treasury Services; Personal & Commercial Banking; Capital Markets; Wealth Management; and Insurance. The stock was down 0.60 percent.
In economic news, Statistics Canada said trade deficit with the world expanded from $1.9 billion in June to $2.3 billion in July as exports fell 3.4 percent and imports decreased 2.2 percent in July. Exports of energy products fell 8.5 percent to $8.2 billion in July on lower volumes and prices. Economists expected trade deficit of $1.40 billion.
Meanwhile, the Canada Mortgage and Housing Corp said the seasonally adjusted annualized rate of housing starts was 224,900 units in August, compared with 208,000 units in July. The July figure was revised down slightly from 208,500 units reported previously.

9/11/2012 11:23 AM ET
From the U.S., the Commerce Department said the nation exported $183.3 billion in goods and services in July, compared to imports of $225.3 billion for the month. The difference marks a trade deficit of $42 billion, up from the June trade deficit level of $41.9 billion.
Elsewhere, German wholesale price inflation accelerated for the second straight month, according to a report released by the Federal Statistical Office. The wholesale price index rose 3.1 percent year-over-year in August compared to expectations for a 2 percent increase.
Meanwhile, U.K.'s visible trade deficit declined to 7.1 billion pounds in July from a deficit of 10.1 billion pounds in June. Economists expected a more modest drop to 10 billion euros.

European Market Report
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European Markets Fall Ahead Of German Court Ruling, FOMC Meet
9/11/2012 7:29 AM ET
The European markets are in negative territory in afternoon trading Tuesday amid concerns that the European Central Bank's bond-buying plan might be jeopardized by a court ruling in Germany on the legality of the the European Stability Mechanism. The Asian markets ended mostly lower, ahead of the FOMC meeting.
Germany's Federal Constitutional Court said today that it would not delay its keenly awaited ruling on the European Stability Mechanism, while rejecting a last-minute bid by a German lawmaker to postpone the judgment.
Reports said the top court in Karlsruhe would pronounce its ruling on the bailout fund and the fiscal compact for budget discipline at 0800 GMT on Wednesday, as originally planned, after rejecting a petition for a temporary injunction by Peter Gauweiler, a member of Parliament.
Gauweiler has said in a statement that the fund should not be ratified until the European Central Bank revokes its bond-buying plan.
Europe still has a "long way to go" in resolving its debt crisis, International Monetary Fund Deputy Managing Director Zhu Min reportedly said. "The crisis is not over," he was quoted as saying during a speech at the World Economic Forum in the Chinese port city of Tianjin. "We are still in the middle" and "there is a long way to go," he said.
Germany's wholesale price inflation accelerated for the second consecutive month in August, data released by the Federal Statistical Office showed. The wholesale price index increased 3.1 percent on an annual basis in August, faster than the 2 percent growth seen in July.
The euro Stoxx 50 index of eurozone bluechip stocks is falling 0.34 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.07 percent.
The German DAX is losing 0.04 percent and the French CAC 40 is falling 0.42 percent. The UK's FTSE 100 is dropping 0.38 percent and Switzerland's SMI is declining 0.47 percent.
In Frankfurt, Commerzbank is falling 2 percent and Deutsche Bank is down 0.3 percent.
BMW, Daimler and Volkswagen are in negative territory.
HeidelbergCement is losing 1.1 percent. Merrill Lynch reinitiated the stock with an "Underperform" rating.
Kontron is moderately higher. Berenberg cut its rating on the stock.
In Paris, LVMH is losing 4.2 percent after Burberry issued a profit warning in the U.K. PPR is falling 3.8 percent.
Societe Generale and Credit Agricole are falling 2.1 percent and 1.8 percent, respectively. BNP Paribas is modestly higher.
Renault and Peugeot are dropping around 1.5 percent each.

9/11/2012 7:29 AM ET
Sanofi is gaining 1.8 percent. The drug maker's vaccines division said its vaccine candidate protects against dengue fever caused by three dengue virus types.
In London, Burberry is plunging 18.6 percent after issuing a profit warning.
Anglo American and Antofagasta are retreating 4.2 percent and 3.2 percent, respectively.
Royal Bank of Scotland is advancing 1.6 percent and British American Tobacco is gaining 1.5 percent.
IG Group is rising 4.7 percent. The firm reported first-quarter revenues in line with its expectations.
Philips is down 0.5 percent in Amsterdam. The company announced elimination of 2,200 more jobs and expanded its cost savings target by 300 million euros.
Intesa Sanpaolo is losing 1.2 percent in Milan after a broker downgrade.
Inditex is gaining over 1 percent in Madrid even after Goldman Sachs reduced its rating on the stock.
Across Asia/Pacific, Australia's All Ordinaries slid 0.2 percent, China's Shanghai Composite index fell 0.7 percent and Japan's Nikkei 225 dropped 0.7 percent. However, Hong Kong's Hang Seng advanced 0.15 percent.
In the U.S., futures point to a higher open ahead of U.S. Federal Reserve's meeting. In the previous session, apprehension ahead of the Federal Reserve's upcoming monetary policy meeting contributed to weakness on Wall Street. The major averages ended the day firmly in negative territory.
In the commodity space, Crude for October delivery is losing $0.05 to $96.49 per barrel and December gold is advancing $2.6 to $1734.4 a troy ounce.

Asia Market Reports
Asian Markets Mostly Down On Economic Concerns
9/10/2012 11:45 PM ET
Asian markets are mostly trading lower on Tuesday with investors tracking a weak lead from Wall Street where stocks declined overnight amid worries about the global economy. Some weak economic data from the region and caution ahead of the U.S. Federal Reserve's interest rate decision are also contributing to the subdued trend.
The Australian market recovered and regained some lost ground after a weak start. Energy, financial and consumer discretionary stocks are trading weak. Mining, industrial and healthcare stocks are trading mixed.
The benchmark S&P/ASX 200 index, which declined to 4,316.7 in early trades, is currently at 4,329, down 4.8 points from its previous close. The broader All Ordinaries index is down 7.8 points at 4,350.2.
Among bank stocks, ANZ Bank , Commonwealth Bank of Australia, National Australia Bank and Westpac are trading lower by 0.3 to 0.5 percent. Bendigo & Adelaide Bank is losing about 0.8 percent, while Bank of Queensland is trading flat.
Among miners, BHP Billiton (BHP, BBL) is trading flat, Rio Tinto (RIO, RIO.L) is down 0.6 percent and Newcrest Mining is losing nearly a percent, while Fortescue Metals is down more than 2 percent.
In the energy sector, Santos is down 1.2 percent, Caltex Australia is losing 1.4 percent, Woodside Petroleum is down with a loss of 0.6 percent and Origin Energy is trading marginally down, while Oil Search is trading flat.
PanAust is trading lower by over 3 percent. JB Hi-Fi, Atlas Iron, James Hardie Industries, Qantas Airways, ALS, Tabcorp Holdings and Seven West Media are all trading lower by over 2 percent.
Whitehaven Coal, Toll Holdings, Boral and Leighton Holdings are also trading notably lower.
Orica, Cochlear, Boral, CSL and Sydney Airport are up in positive territory, gaining between 1.4 percent and 2.3 percent.
In economic news, confidence among Australian businesses fell back in August after a solid improvement in July as weak outlook for commodity prices crushed confidence level in the mining industry, according to the latest survey published by the National Australia Bank.
The business confidence index fell to -2 in August from 3 in July. Mining was the worst affected industry, although most sectors saw weaker confidence levels on the back of global uncertainty. A notable exception was retail where lower rates seem to have offset these impacts, NAB said.
At the same time, the business conditions index rose to 1 in August from -3 in July. However, the levels of activity remain subdued.
The Japanese market drifted lower with investors pressing sales at several counters across the board amid lingering worries about the economic situation in Europe.

9/10/2012 11:45 PM ET
Automobile, bank, retail, construction, glass & ceramics, chemicals and precision instruments stocks were mostly down in negative territory. Foods and pharmaceuticals stocks displayed a mixed trend.
The benchmark Nikkei 225 Index was down 72.4 points or 0.8 percent at 8,797 when the morning session ended.
Sumco Corp. shares lost more than 7 percent. Asahi Glass, Ebara Corp., Nippon Express, Mitsumi Electric, Shinsei Bank, Sumitomo Metal Industries, Kobe Steel and Mazda Motor declined by 3 to 4 percent.
Toshiba Corp. announced that it will pay $30 million to settle a lawsuit in the United States over alleged price-fixing involving liquid crystal display panels and products containing LCD panels.
Panasonic Corp. shares lost more than 2 percent following a rating downgrade of the company by Moody's Investors Service.
NTN Corp., Mitsubishi Motors, Mitsubishi Materials, Komatsu, Showa Shell KK, Mitsui Mining & Smelting, Taisei Corp., Nippon Steel, Sumitomo Mitsui Trust Holdings and Toyota Motor were also down by over 2 percent.
Nissan Motor, Advantest Corp. , JX Holdings, Nissan Chemical Industries, Japan Steel Works, Mizuho Financial and SMFC too posted notable losses.
Meanwhile, Nisshin Steel, Nippon Light Metal, Japan Tobacco and Kawasaki Kisen Kaisha gained 1 to 2.5 percent.
Pioneer Corp., Tokyo Electric Power, Trend Micro, Shizuoka Bank, Fuji Electric Power and Kansai Electric Power were up with modest gains.
In economic news, the value of M2 money stock and CDs in Japan was up 2.4 percent on year in August at 819.0 trillion yen, according to the data released by the Bank of Japan said. That was higher than forecasts for an increase of 2.3 percent following the 2.2 percent gain in July.
M3 was up an annual 2.1 percent to 1,126.3 trillion yen - also topping expectations for a 1.9 percent increase, which would have been unchanged from the previous month.
L money stock added 0.3 percent on year to 1,462.1 trillion yen in August after showing a flat reading a month prior.
In the currency market, the U.S. dollar traded in the lower 78 yen range in early deals in Tokyo. The yen is currently trading at 78.21 to the dollar.
Among other markets in the Asia-Pacific region, Shanghai, Hong Kong, Malaysia and Indonesia are trading notably lower. South Korea and Taiwan are down marginally, while New Zealand and Singapore are trading marginally higher.
On Wall Street, stocks ended mostly lower on Monday, after showing a lack of direction almost right through the session. Some profit taking after recent gains and apprehension ahead of the Federal Reserve's upcoming monetary policy meeting contributed to the weakness.
     
9/10/2012 11:45 PM ET
The major averages all ended the day firmly in negative territory. The Dow drifted down 52.3 points or 0.4 percent to 13,254.3, the Nasdaq dropped 32.4 points or 1 percent to 3,104 and the S&P 500 slid 8.8 points or 0.6 percent to 1,429.1.
Major European markets too ended lower on Monday. The French CAC 40 Index lost 0.4 percent, while the U.K.'s FTSE 100 index and the German DAX index both closed just below the unchanged line.
U.S. Crude oil made a late rally to end higher on Monday, notwithstanding demand growth concerns after some disappointing macroeconomic data from China. Light Sweet Crude oil futures for October delivery gained $0.12 or 0.1 percent to close at $96.54 a barrel on the New York Mercantile Exchange.


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China's Growth Remains On Track, Premier Says
9/11/2012 8:31 AM ET
China's Premier Wen Jiabao on Tuesday said the economy is on track to meet its growth target of 7.5 percent this year.
Speaking at the World Economic Forum in Tianjin, Wen said the government stands ready to utilize the CNY 100 billion reserve fund to fine tune the economy if needed. The government gives high priority to stabilize growth, he added.
The Chinese leader expects the economy to stabilize on recent measures like tax reduction, required reserve ratio, and infrastructure spending.
Wen defended massive stimulus initiated by China during financial crisis in 2008. Some people accused that it paid undue price.
He said, "It was exactly due to our resolute decision and scientific response that China was able to avoid factory closures and job losses."
The government last week added stimulus worth more than CNY 1 trillion through the approval of a slew of infrastructure projects. It includes rail projects as well as highway construction.
At APEC Economic Leaders' Meeting in Russia held over the weekend, Chinese President Hu Jintao said that the economy is facing notable downward pressure largely due to slowing export growth.
China's economic growth slowed to a three-year low of 7.6 percent in the second quarter, just above the government's full-year target of 7.5 percent. This primarily reflected weak exports due to reduced demand from European Union, its largest trading partner.
Data released earlier on the day showed that bank lending surged in August mirroring higher government spending amid efforts to stimulate growth.
The central bank reduced interest rates in June and July and has also lowered the reserve requirement ration three times since November last year.