Dinallo ultimately intends to persuade financial institutions to commit as much as $15 billion to support insurance and help buffer against future losses and write-downs.

Analysts estimate that if bond insurers continue to lose ratings it will result in more than $200 billion in losses in CDO bonds will be forced on bank’s balance sheets.

Of the Nikkei 225 index shares Mitsui Fudosan led advancing stocks with a rise of 10.05% followed by gains of 9.59% in Daiwa House Industries, of 9.28% in Mitsui Sumitomo Insurance, of 9.09% in Sumco Corporation, and of 8.62% in Chiyoda Corporation.

Tokyu Land Corp shed 8.45% and Mitsubishi Estate Company tumbled 8.37%.

Chiyoda Corporation rose after UBS AG upgraded the stock’s rating from “neutral” to “buy”, citing reduced raw material and labor costs.

Advantest Corporation led a decliners in Nikkei 225 index shares with a drop of 9.15% followed by losses of 5.93% in Nippon Paper Group, of 4.24% in Kikkoman Corporation, of 2.51% in Seven & I Holdings, and of 2.16% in Konica Minolta.

Advantest Corporation plunged after the Nikkei reported that the chipmakers operating profit might fall 40% in the current fiscal year ending in March 2008.


Australian shares gained today, following US stock markets that surged in late trade overnight after the Federal Reserve''s emergency cut in interest rates on Tuesday. Centro Properties Group''s new boss

Mr Glenn Rufrano rules out sale of the company''s assets. Zinifex Ltd registers growth in zinc production. National Australia Bank denies being Allco Finance Group''s direct lender. Newcrest Mining Ltd announces cut in its full-year output forecast. Orica Ltd rules out further acquisitions. $800 million equivalent ($701 million) revolving loan for Australian investment firm Babcock & Brown Infrastructure Ltd launched to general syndication.

3:00AM New York, 7:00PM Sydney - ASX 200 index rose 3.1% after gains in financial counters.

ASX 200 index gained 3.1% or 168.1 to close at 5,580.40.

The Preliminary market turnover was 2.42 billion shares worth $9.43 billion, with 1070 shares moving up, 367 moving down and 248 unchanged.

Troubled shopping centre operator Centro Properties Group''s new boss Mr Glenn Rufrano today ruled out any sale of the company''s assets at this stage after expressing optimism that the company''s request to bankers for more time to refinance $3.9 billion in maturing debt would be approved.

He indicated that Centro is considering the sale of its investment in Centro Australian Wholesale Fund and in Centro America Fund with assets of $2.6 billion and $1.1 billion under management, respectively. Rufrano could not put a figure on the amount of equity Centro is expected to receive.

Rufrano replaced Andrew Scott as Centro''s chief executive last week. He had been with the company for nine months prior to his appointment.

Centro shares have lost 94% of their market value since mid-December after it failed to refinance its severe debt load.

Shares in Centro gained 35.2% while those in Centro Retail Group were up 22.5%.

The world''s third-largest zinc mining company, Zinifex share rose 11% today after it reported growth in zinc production during the second-quarter.

Zinc production rose 2.9% amid continuing demand from China. According to the company''s statement zinc output was 147,288 metric tons in the three-months ended December 31, up from 143,116 tons a year earlier.

The increase represents an 8% rise for the half while lead production rose to 18,863 tons, from 14,565 tons. Zinifex grossed than $2 billion in cash after selling its smelters in October and needs new sources to replace dwindling reserves in Australia.

According to Zinifex, the average price of zinc fell 19% to $2,623 a metric ton in the quarter compared with the previous quarter representing a 37% fall from the same period a year earlier when the price for the metal averaged to a record level at $4,142 a ton.