9:45AM NY – Personal Spending and income rose in February, market averages struggle at the opening.

The Commerce Department reported that personal spending in February rose 0.6% and so did personal income in the month. Economists were looking for a rise of less than 0.4%. After adjusting for price inflation in gasoline and other food products the personal spending rose only 0.2% in February after gaining 0.3% in January. In January, personal income rose at 1% and personal spending rose at 0.5%.

Stronger spending and income put asides fears of economic slow down in the morning trading, however, economists are still revising their estimates of economic growth for the year to less than 2.5%. Worries related to slow down in housing and lack of rebound in capital spending from businesses was cited as prime reasons for lowering estimates.

The report also noted that the measure of inflation index, core inflation, excluding food and energy prices, rose 0.3% in February and for the last twelve months rose at 2.4%, higher than the Fed’s preferred target range of less than 2%.

The report also said the personal savings rate remained unchanged and declined at a rate of 1.2% in February.



9:00AM Asian markets mostly advanced Friday with Japan up on inflation data.
Asian markets ended moslty higher on Friday. In Tokyo, the Nikkei 225 closed 0.1% higher to 17,287.65. Mitsui Fudosan, up 2.4%, led gains among the interest-rate sensitive property stocks as data released Friday showed consumer price index in Japan dropped in February for the first time in 10 months.

Exporter such as Honda Motor also advanced as data showed that the U.S. economy grew faster than thought previously in the final quarter of 2006. Honda rose 1%, while Sony gained 0.2%. Shares of Mitsui Engineering & Shipbuilding added 2.5% higher after reports that the company is likely to report an 89% rise in profit for the current fiscal year.

Hong Kong Hang Seng Index dropped 0.1% to 19,800.93. China Shanghai Composite index also ended down 0.4% to 3183.98. PetroChina advanced, rising 1.8% and tracking the move higher in crude-oil prices tied to Persian Gulf tensions between the U.K. and Iran. CNOOC, the third-largest oil producer by output in China, advanced 0.3%. The oil large-cap reported late Thursday that net profit rose 22% last year.

Australian S&P/ASX 200 gained 0.6% to end at 5995.00, while South Korean Kospi index advanced 0.1% to finish at 1,452.55. Singapore Straits Times Index gained 0.3% to close at 3,231.24. Taiwan Weighted Price Index ended 0.5% higher at 7,884.41. Alinta in Sydney, gained 2.6% as the energy infrastructure company recommended a $6 billion offer from Babcock & Brown and Singapore Power.

8:00AM NY-7:00PM Mumbai Sensex gains on auto, pharma stocks.
The Sensex on BSE finished 92.44 points, or 0.71%, higher at 13,072.10. The market-breadth was strong as there were two advancers for each decliner. As 1,676 stocks advanced, 864 declined, and 70 stocks remained unchanged. Of the 30 stocks in the Sensex, 23 advanced, while the rest declined. The turnover on BSE was Rs 2,974 crore, lower than Rs 3,692.27 crore on Thursday. On NSE, the turnover was Rs 7,517.79 crore, compared with Rs 10,009.89 crore on Thursday.

Economic news

The wholesale price index in India increased 6.46% in the 12 months to March 17, matching the increase in the previous week, data showed on Friday. The figure was slightly below a forecast of 6.50%.

The foreign investment regulator of India has delayed a decision on Vodafone plans to buy controlling stake of Hutchison Telecom in Hutchison Essar. After a meeting of the Foreign Investment Promotion Board, Finance Secretary Ashok Jha said that the board had asked for more details on the deal.

Trade Minister Kamal Nath admitted on Friday that Indian import duties on wines and spirits are high and added he expects the situation to be corrected. The European Union is escalating a dispute with India at the World Trade Organisation, over what it sees as unfair trade barriers for its wine and spirits.

Trading highlights

Indiabulls Real Estate was the most-active stock with a turnover of Rs 174.55 crore followed by Renuka Sugar and Reliance Industries.

Advancers

Dr.Reddy''''s rallied 3.1% to Rs 728 and the other pharma large-caps Ranbaxy Laboratories edged up 2.1% to Rs 353. NTPC surged 3% Rs 150, respectively and ITC soared 2.5% to Rs 150. NTPC announced it had signed an agreement with KFW, Germany, for a term-loan of $100 million. The loan agreement, which state-run NTPC signed, is an unsecured facility without sovereign guarantee bearing variable interest linked to LIBOR, and has a maturity of 10 years.