9:00AM U.S. stock futures pointed higher on deal news and retail sales.

U.S. stock futures pointed higher on Thursday, driven by gains in the metals sector, as well as some better-than-expected sales among retail stocks. Rio Tinto's $38.1 billion offer for Alcan and Wal-Mart's robust June sales managed to offset negative sentiment generated by profit warning from Motorola and other unimpressive retail results. Wal-Mart (WMT: chart) rose 2.3% in pre-open trade, as the retailer said June same-store sales rose 2.4% and confirmed quarterly profit outlook.

In other corporate news, motorola (MOT: chart) warned of a Q2 loss on lower-than-forecast revenue. On the merger-and-acquisition news front, Anglo-Australian metals giant Rio Tinto agreed to buy Canadian aluminum producer Alcan (AL: chart) in a cash deal worth $38.1 billion, or $101 a share.

In economic news, the Commerce Department said that the U.S. trade deficit widened in May by 2.3% to $60 billion, in line with expectations. Exports increased 2.2% to a record $132 billion, but imports of goods and services into the United States grew faster at 2.3%, rising to a record $192.1 billion. S&P 500 futures rose 2.3 points at 1,533.40 and Nasdaq 100 futures rose a half-point at 2,010.00. Dow industrial futures rose 27 points.


8:30AM Asian markets advance with South Korea, HK leading advancers, Japan falls.

Tokyo finished lower Thursday as Japanese brokerages pulled the market down after Deutsche Bank lowered its stock-price forecast for Nomura Holdings. The Nikkei 225 Average ended 0.4% lower at 17,984. Nomura lost 4.8%, while other brokers followed suit like Daiwa Securities Group down 1.8%.

In Hong Kong, the Hang Seng Index advanced 0.9% to settle at 22,809. China Mobile added 3.7% after Citigroup upped the stock to buy from hold. China Life Insurance Co., the biggest insurer in the country, gained 1% in Hong Kong. Ping An Insurance, the second biggest, added 4.2%.

South Korea also set a fresh high. The Kospi Index gained 1.1% to finish at 1,910. The stocks gained despite the fact that the central bank hiked its key interest rate to a six-year high of 4.75%. Samsung Electronics gained 1.7% and. Hynix Semiconductor Inc added 1.6%. Posco, steel producer, gained 3.6% on hopes of strong second-quarter earnings.

The Shanghai Composite Index in China advanced 1.3% to clsoe at 3,916. Huaxin Cement's B shares rallied by the daily 10% limit, and Dahua Group Dalian Chemical Industry was also limit-up, soaring 10%.

In Australia, the benchmark S&P/ASX 200 rose 0.6% to 6,363. Rio Tinto rose 1% to settle at record high after the company said it had agreed to buy Alcan for $38.1 billion, outbidding New York-based Alcoa $27.7 billion hostile bid. BHP climbed 2.4%.


8:00AM Rio Tinto agreed to buy Alcan for $38.1 billion.

Rio Tinto announced an agreement Thursday to buy Canadian aluminum producer Alcan (AL: chart) in a deal worth $38.1 billion, or $101 a share, entirely in cash. The offer exceeds a hostile bid from U.S. aluminum giant Alcoa (AA: chart) by roughly a third.

The transaction represents a 65.5% premium to Alcan's all-time high prior to the Alcoa offer. It's a premium of 32.8% to Alcoa's current cash-and-shares offer valued at $76.03 per Alcan share.

Rio Tinto’s CEO Tom Albanese said the company is making the deal in order to take strong positions in three metals-iron ore, copper and aluminum. It is aiming to meet the great demand from China's fast growing economy.

The board of Alcan unanimously approved of the offer from the Anglo-Australian mining company. Alcan shares surged 12% in pre-market trading, while Alcoa shares gained 5.7%.


7:30AM NY – 6:30PM Mumbai Sensex advances 181 points, Hindalco and Reliance Energy rally, IT shares dip.