Pepsi Bottling Group (PBG: chart) reported earnings of $1.86 per share. Micro Technology (MU: chart) is expected to report a loss of 23 cents after the close. Thor Industries (THO: chart) 90 cents per share beating the estimate of 67 cents per share as reported by a survey from Thomson Financial. After the earnings stock jumped 2.5% at the opening in New York. Walgreen (WAG: chart) fell 3% after reporting earnings decline of 4%.

The index of pending sales of existing home declined to its lowest level since 2001 to 85.5 in august. The index tracks the sentiment among home buyers and tighter lending standards and falling home prices have kept buyers away from the market.

Asian markets closed sharply higher on the first day of the month. Hong Kong led the gainers in the region. European markets at mi-day traded higher led Spain and France.

8:00AM New York, 8:00PM Hong Kong – Hong Kong led Asian markets and deals in Australia helped to close the index at a record level.

Asian markets closed sharply higher led by record close in several markets.

Hong Kong led the gainers with a rise of 3.9% or 1,057.28 to close at 28,199.75 followed by increases of 2.7% in Indonesia, 2.6% rise in South Korea, 1.4% in Taiwan and Malaysia, and 1.2% in Japan. Australia jumped 87.80 or 1.33% to 6,667.60.

Hong Kong index crossed 28,000 for the first time led by rising banks and real estate stocks. Rally in the U.S. stocks in the overnight trading, hopes of additional funds from mainland China, and expectations of better earnings in the third quarter helped Hang Seng index close higher.

China Mobile jumped 6.4% to HK$135.36 and China Telecom surged 11% to HK$6.50.

Banks rallied after Citigroup and UBS provided an estimate of losses. The reported losses by two banks added to a large loss of $9.6 billion, lower than what investors had estimated, prompting a sharp rally in the U.S. banking stocks and broader market indexes. Industrial Bank of China jumped 4.6% to HK$5.70, Bank of China jumped 5.3% to HK$4.38, HSBC Holdings added 1.3% to HK$144, and China Life surged 8.4% to HK$48.40.

Property stocks in China rallied as well. Sun Hung Kai Properties jumped 7% to HK$139.80, Cheung Kong Limited added 4.8% to HK$134.30, New World Development increased 2.3% to HK$22, but Henderson Land was suspended in trading ahead of company announcement.

In Sydney trading ASX 200 Index gained 1.5% or 96.2 to 6,659.90 led by a sharp rebound in bank stocks.

National Australia Bank Ltd. climbed 1.6%, Macquarie Bank Ltd., Australia''s largest investment bank and securities firm, jumped 2.7% and Babcock & Brown Ltd rose by 5.6%.

BHP Billiton Ltd gained 3.5% as it led other mining stocks as metals prices soared. Rio Tinto Group added 3.4% and Zinifex Ltd, the world''s third-biggest zinc miner, rose by 2%.

Carlyle Group and National Hire Ltd agreed to pay A$1.7 billion ($1.5 billion) for Coates Hire Ltd. Coates bid is valued at A$6.70, or A$2.2 billion. The stock jumped 5.4% to A$6.42 after the news of the revised bid.

The third revised bid was accepted by the company that rents construction equipment, vehicles, and other equipment. The offer needs 75% of shareholder vote to be conducted in December. The combined company will be renamed Ned Group with a total sales of A$990 million and operating earnings of A$202 million.

The troubled lender Rams Home Loans Group agreed to sell its branch network to Westpac Banking. Westpac will pay A$140 million for 92 branches and takeover loan obligations for the company and provide financing for A$1.5 billion. The lender relied on securities market for its funding of mortgage loans faced a turbulent market conditions to refinance its debts. Rams relied on the U.S. commercial paper market to fund its mortgage products and faced market conditions that effectively shut down all lending operations during three weeks of turmoil.

After the news of the deal Rams fell 25% to 66 cents and Westpac gained 53 cents to close at A$29.00.

6:00AM New York, 7:00PM Tokyo – Stocks in Asia jumped to record highs. Tokyo added 1.2% on strength in banks, brokerage, and metals stocks.

Japan’s stock indexes rallied 1.19% boosted by financial stocks on speculation global credit markets were on the mend.

In Tokyo trading Nikkei 225 added 1.19% or 200.83 to 17,046.78, nearly two month high. Of the Nikkei 225 stocks 171 advanced, 45 slipped and 7 traded unchanged. Mitsubishi UFJ Financial Group led gainers with a surge of 5.59%, followed by Adventist Corp, rising 5.04%. Other financial stocks gained as well. Mizuho Financial Group edged up 2.64% and Sumitomo Mitsui climbed 3.86%.

U.S. stocks rallied on write downs in bond portfolio by Citigroup and UBS. Citigroup wrote off $5.9 billion in bond portfolio and UBS booked a loss of $3.4 billion in mortgage related businesses. U.S. stocks jumped after the two big banks offered insights into the extent of losses and hinted that worst may soon be over.

Metal prices also rallied, with zinc and copper increasing 1.6% and 1.1% respectively. Nippon Light Metals rising 1.95%, Mitsui Mining and Smelting Company soaring 1.83% and Sumitomo Metal Industries jumping 1.68%.