Asia Day Ahead: S&P 500 Erases 2009 Loss; Citi May Seek Capital

May 5 (Bloomberg) -- U.S. stocks rose, erasing the Standard & Poor’s 500 Index’s 2009 loss, after home sales beat estimates and manufacturing in China increased for the first time in nine months, boosting confidence the global recession is easing. Citigroup Inc., girding for results of the Federal Reserve’s bank stress test, may try to wring capital from private investors instead of U.S. bailout funds as a way of bolstering equity without ceding control to the government, people briefed on the matter said.

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Citigroup May Seek Capital That Averts U.S. Control

Citigroup Inc., girding for results of the Federal Reserve’s bank stress test, may try to wring capital from private investors instead of U.S. bailout funds as a way of bolstering equity without ceding control to the government, people briefed on the matter said.

MAIN ECONOMIC RELEASES TODAY Reserve Bank of Australia Seen Leaving Key Rate Unchanged at 3% Indonesia Central Bank May Cut Interest Rate to 7.25% From 7.5% Australian March Building Approvals Seen Rising 2.8% Vs February Australia Performance of Services Index for April Is Released Philippine April Consumer Prices Seen Rising 4.7% From Year Ago Taiwan’s Consumer Prices Report for April Is Due to Be Released Singapore’s Purchasing Managers’ Index for April Due for Release

MAIN ANALYST UPGRADES/DOWNGRADES *CHINA COSCO CUT TO ‘UNDERPERFORM’ AT CREDIT SUISSE *SINA CUT TO ‘PERFORM’ AT OPPENHEIMER *DOOSAN INFRACORE RAISED TO ‘BUY’ AT BNP PARIBAS

ASIAN MARKETS

The Nikkei 225 futures contract due in June fell 20 points to 9,020. The Hang Seng Index futures for May gained 840 to 16,227. The S&P/ASX 200 Index futures contract due in June rose 75 to 3,939 at 6:59 a.m. in Sydney.

U.S. Stocks Advance as S&P 500 Index Erases Decline for Year

U.S. stocks rose, erasing the Standard & Poor’s 500 Index’s 2009 loss, after home sales beat estimates and manufacturing in China increased for the first time in nine months, boosting confidence the global recession is easing.

Treasuries Little Changed as Fed Buyback Tempers Supply Concern

Treasuries were little changed as the Federal Reserve bought $8.5 billion in debt, the largest amount since the central bank began purchasing government securities in March to drive borrowing rates lower.

Yen, Dollar Drop as Signs Slump Easing Spur Higher-Yield Demand

The yen declined to the lowest level in almost three weeks versus the euro while the dollar dropped after an unexpected gain in U.S. pending home resales encouraged investors to buy higher-yielding assets.

European Stocks Rise for Third Day; ArcelorMittal, Fiat Climb

European stocks advanced for a third day as manufacturing in China expanded and U.S. pending home resales and construction spending increased, reinforcing optimism the worst of the global recession is over.

European Bonds Fall as Stock Gains Sap Demand for Safer Assets

European government bonds fell as signs the global economy may be emerging from its worst recession since World War II pushed stocks higher, damping demand for the safest assets.

Gold, Silver Gain as Dollar Falls, Pending Bank Stress Results

Gold climbed for the first time in three sessions on surging demand for the metal as a store of value while the dollar fell and investors prepared for the release later this week of U.S. bank stress tests. Silver rose.

Crude Oil Rises to 5-Month High as Pending Home Sales Increase

Crude oil rose to a five-month high as the number of Americans signing contracts to buy previously owned homes jumped along with spending on U.S. construction projects, signaling energy demand may improve with the economy.