8:00AM Computer maker Dell posted 46% profit increase in Q2.

Computer maker Dell Inc. (DELL: chart) advanced 2.4% in pre-market trading after it reported positive Q2 results, prompting it is trying to regain stability and lost positions in the computer industry. According to preliminary results released after the closing bell Thursday, Dell’s quarterly earnings jumped 46% to $733 million, or 32 cents per share, compared with $502 million, or 22 cents per share a year ago.

The profit increase was attributed to stronger sales of business products and services, improved average selling prices and lower component costs. Sales rose 4% to $14.8 billion. The quarterly financial results exceeded analyst expectations of earnings of 30 cents per share on sales of $14.63 billion. Dell said results were dragged down 5 cents per share by a $102 million charge for payments for expired stock options. Another $59 million was related to the internal probe, which found that Dell employees had misled auditors and manipulated results to meet performance.


7:00PM New York, 8:00PM Tokyo - Japanese stocks jumped the most in a fortnight spurred by a weaker yen. Japan fiscal budget for 2008 is likely to reach 85 trillion yen. Industrial production shrank 0.4% in July while unemployment rate dropped to 3.6%.

Tokyo rallied Friday helped by a falling yen and hopes that the U.S. government may take action to prevent subprime lending crisis from widening to the general economy. Japan climbed 2.6% on increased buying, adding to the 0.9% gain yesterday. Of the 225 Tokyo shares 210 gained, 13 dropped and 2 remained unchanged. Of the index shares, 16 stocks gained over 5%.

In Tokyo trading Nikkei 225 rose 2.57% or 415.27 to 16,569.09 led by exporters. Against the U.S. dollar, the yen weakened to 116.22 from over 115 yesterday while it dropped to 158.87 to the euro from 157.48 Thursday.

Japan Finance Ministry announced Thursday it expects fiscal 2008 budget to grow to 85.71 trillion, driven higher by escalating debt-servicing costs and domestic tax grants. The 2007 budget stood at 82.91 trillion yen. This would be the second straight state budget increase in two years despite Japan’s efforts to rebuild its strained national finances. The Ministry of Economy, Trade and Industry reported Japan''s industrial production shrank a seasonally adjusted 0.4% in July drained by powerful earthquake that hit Niigata Prefecture and hurt auto production. The index of output at mines and factories stood at 108.1 against the base of 100 for 2000. The quake paralysed the automobile industry, as production of auto parts stopped.

Government said Friday unemployment rate dropped 0.1 percentage points to 3.6% in July, the lowest in 9 years, and second straight monthly decline. In July, the number of unemployed reached 2.34 million, down 340,000 from a year earlier, the Ministry of Internal Affairs and Communications said in a preliminary report. However, analysts were less optimistic, saying the improvement only resulted from a decline in the country''s potential labour force — the total of jobholders and unemployed — due largely to a mass retirement of baby boomers. The total dropped 290,000 in July from June to a seasonally adjusted 66.46 million.

The Natural Resources and Energy Agency said today that Japan''s July crude oil imports rose 7.1% to 338.63 million barrels from a year ago, the second straight monthly increase. Imports from the Middle East accounted for 85%. Saudi Arabia remained Japan''s largest oil supplier in July, with its exports down 3.9% to 89.03 million barrels followed by The United Arab Emirates shipments falling 10% to 79.81 million barrels. Qatar with exports to Japan rose 13.7% to 41.65 million barrels. Iran ranked fourth with shipments surging 10.2% to 35.45 million barrels.

Of the Nikkei 225 stocks, exporters led the rising stock helped by a weaker yen. Furukuwa Electrical led gainers rising 8.3% followed by Fujikura Ltd up 7.32% and Minebea Co Ltd closed higher 6.8%. Mitsui & Co rose 6.64%. Technology stocks, Sony Corp, NTT Data Corp, TDK Corp and Fujifilm Holdings gained 5.5%, 5.1%, 4.9% and 4.6% respectively. Industrial and motor shares gained strongly as well. Of the index shares, energy related stocks fell after leading yesterday’s rebound. AEON Co Ltd led decliners falling 2.4% followed by Chugai Pharmacy down 2.12%. Shionogi & Co lost 1.4%, Isetan down 1.23% and retailer Mistukoshi Ltd ended lower 1.2%.