Of the Nikkei 225 index shares Sumitomo Metal Industries led gainers with a rise of 4.68% followed by gains in Sumitomo Mitsui Financial of 3.62%, in Mitsui Sumitomo of 3.47%, in Millea Holdings of 3.39%, and in Fast Retailing of 3.33%.

Sumitomo Metal Industries gained on the Nikkei news reports that the company, Nippon Steel Corp, and Kobe Steel Ltd, each will spend 260 billion yen to double the current cross shareholding.

Financial stocks also gained after the Nikkei online edition reported that the country’s three biggest lenders are likely to reject a request by the U.S. banks to contribute about $15 billion yen towards the subprime asset bail out fund.

Mitsubishi UFJ Financial Group climbed 2.23%, Mizuho Financial Group spiked 1.89% and Resona Holdings increased 2.60%.

Nippon Kayaku led the decliners in the Nikkei 225 stocks with a fall of 10.86% followed by losses of 5.79% in Clarion Company Limited, in Sumco Corporation of 5.1%, in Taiheiyo Cement of 3.8%, and in Konica Minolta Holdings 3.73%.

Hino Motors announced today that the company aims to increase sales of tucks and buses to 118,200 in the next fiscal year and increase overseas sales to 71,700 units. Sales in Japan are however projected to decline 2.3% to 46,500 units. Global production is estimated to increase 10% to 117,500 vehicles next year.

Bloomberg news reported today that Japan’s Real Estate Investment Trusts face acquisitions or privatization as 75% of the listed REITs are trading below their net asset value. The REIT Index is headed for its first decline since 2004.

5:00AM New York, 9:00PM Sydney - The Australia index declined by 0.6% after loses in mining and financial stocks.

ASX 200 index declined 0.6% or 39.5 to close at 6,176.90.

BHP Billiton closed down 1.4%, Rio Tinto declined 1.8%, and Commonwealth Bank of Australia declined 1.2%.

The Preliminary market turnover was 2.18 billion shares worth $11.83 billion, with 523 stocks higher, 715 lower and 345 unchanged.

Centro Properties was the most actively traded stock with 114.95 million shares worth $157.17 million changed hands.

Australia''s largest steel maker, BlueScope Steel today announced that it will acquire the outstanding shares of IMSA Steel Corp for $730 million from Ternium S.A listed on NYSE. After the acquisition BlueScope will be the second largest supplier of pre-engineered buildings used for barns, aircraft hangers, and schools behind Houston based NCI Buildings Systems Inc. The company expects to realize annual savings of US$40 million after the merger.

The company announced that its latest consolidated sales for the year ended December 31 2006 were approximately US$1.2 billion with Earnings Before Interest, Taxes, Depreciation and Amortization of US$86 million.

According to the release the acquisition will be funded by a 364-day bridge loan facility and BlueScope will also assume approximately US$20 million in under-funded pension liabilities.

The purchase will double BlueScope''s sales in the $157 billion U.S. commercial and industrial building market, adding 23 plants from California to North Carolina.

BlueScope closed up 2.9%.

Herald Resources Ltd today announced that it is in the preliminary discussions with companies that had expressed interest in merger. The latest development comes barely a week after the company told its shareholders not to take action following a $455 million (US$391 million) takeover bid by Indonesia''s largest coal producer PT Bumi Resources at A$2.25 per share.

Herald Resources is planning a zinc and lead mine in Indonesia. Takeovers and mergers in the industries are rising as companies hope to meet growing demand from China and rising commodity prices in the last five years.

PT Bumi had indicated to Herald that it could assist Herald to acquire the Indonesian government''s approval for $192 million Dairi mine project. Herald has been waiting for the approval for the past two years. Herald added 3.1% by close of the trade.