Casio Computer Company, which has a joint venture with Hitachi Limited Casio Hitachi Mobile Communications, gained the most since May 2004 after Merrill Lynch lifted the rating on the stock from “neutral” to “buy”, citing an increase in market share in the handset business that could help profits.

Mitsubishi UFJ Nicos rose after consumer lender Aiful Corp second quarter profit jumped to 14.2 billion yen from a loss of 194 billion yen a year ago. Revenue for the company however slumped 16% to 107 billion yen.

Isuzu Motors led decliners in the index with a fall of 5.86%, followed by losses of 5.56% in Sojitz Corporation, 5.29% in Nippon Mining house, 4.55% in Mitsumi Electric Company and 4.47% in Showa Shell.

Isuzu reported yesterday that first half profit fell 33% as domestic demand slumped. Net income dropped 37 billion-yen in the six months to September.

Commodity and energy related stocks fell on declining prices of metals and oil. Crude oil for December delivery fell 0.3% to $94.36 per barrel. Mitsubishi Corp plunged 3.73 and Nippon Oil declined 2.07%.

Sankyo rose after the first half net income fell to 16.3 billion yen, lower than the 16 billion yen analysts had predicted.

4:00AM New York, 8:00PM Sydney – The Australia index rose 0.9% as major stocks led by banks traded stronger.

ASX 200 index gained 0.9% or 59.9 to close at 6,515.20. Banks led the gainer with Westpac adding 1.3% and National Australia Bank increasing 1.6%.

Preliminary stock turnover was 850 million shares worth A$3.41 billion, with 511 stocks up, 560 down and 356 unchanged.

The most traded stock on the market was Republic Gold Ltd, with 44.5 million stocks changing hands at a value of A$8.74 million.

The precious metal explorer''s shares were 13.89% stronger to 20.5 cents.

Macquarie Group Limited today announced a record A$1.06 billion profit after tax attributable to ordinary shareholders for the half year ended 30 September 2007. This increase represents a 45% increase over the A$730 million profit for the half year ending on September 30, 2006.

The company said the 45% profit growth was driven by a 38% increase in total revenue, of which 55% was derived from international operations. Earnings per share for the six-month period increased 34% to A$4.02 from A$3.01 on the prior corresponding period.

But the bank said it is cautious about its outlook, forecasting its second half result to be in line with last year and further cautioned that it may be too early to forecast the results.

Macquarie Group Managing Director and Chief Executive Officer Allan Moss says equity market conditions may not continue to be as favorable, and noted that the first half had benefited from a large number of asset sales.

Moss said Macquarie Group Limited will pay interim dividend of A$1.45 per share, 16% increase form a year ago. Mcquarie targets to pay dividend between 50% and 60% of its profit.

Moss, said: ""This record half year result underscores the strength and diversity of our global business. He further added, ""The story of our strong growth beyond Australia continues and we are particularly pleased with the outstanding contribution from the Asia-Pacific region, which was largely unaffected by the credit market disruption.""

Moss noted that Macquarie continued to hire quality staff, while maintaining a low expense-to-income ratio.

""All operating groups have experienced continued international growth. For Macquarie Capital (formerly Investment Banking), Equity Markets, Treasury and Commodities, Real Estate and Funds Management Groups income from international activities was more than half of each group''s total operating income,"" Mr Moss said.

Gaming and media group Publishing and Broadcasting Ltd (PBL) indicated today that Canadian gaming regulators have approved the bid by its 50/50 joint venture for Gateway Casinos in Canada.

The company said regulators in the provinces of British Columbia and Alberta have approved the bid by the PBL and Macquarie Group joint venture, New World Gaming Partners, for Gateway Casinos Income Fund.

The joint venture partners will pay $1.3 billion for the fund, which holds a network of nine casinos in Vancouver, Edmonton and Alberta.

The decision by Reserve Bank of Australia to revise its inflation forecast has heightened speculation among economists of further hikes in interest rates.