Shares of FedEx Corp. (FDX: chart) moved slightly higher after it reported a 7% quarterly profit increase. Futures for the Dow Jones Industrial Average were up 55 at 13,810, while those for the S&P 500 index rose 4.70 points to 1,553.


[R]8:30AM Asian markets finished mixed Wednesday with Japan up, China down.[/R]

Asian markets finished mixed Wednesday. The Nikkei 225 Stock Average rose 0.3 percent to 18,211.68 in Japan. Mitsubishi Heavy Industries settled up 3.8% on a report it signed a partnership agreement under which Boeing will support the first passenger jet in Japan. Nissan Motor was up 0.8%, and Sharp finished 0.4% higher.

In Hong Kong, strong gains in Chinese oil producers buoyed the benchmark index to another closing record for the third consecutive session. The benchmark Hang Seng index advanced 0.47% to 21684.67. Offshore oil producer Cnooc surged 2.7% after a ratings upgrade by Credit Suisse, and PetroChina soared 5.2% after unveiling plans to list shares in Shanghai.

In China, the market closed lower on worries that new share offerings will lead to a supply glut, after oil company PetroChina announced it plans a Shanghai listing. The Shanghai Composite Index lost 2.42% to 439.18. Steel makers declined after China announced late Tuesday it will reduce or abolish tax rebates on export of metal and steel products from July 1. Baoshan Iron & Steel shed 2.2%, Wuhan Iron & Steel lost 2.7% and Laiwu Steel tumbled 5.2%.

In South Korea, the Kospi index fell 1.33% to 1783.79 on weakness in brokerage stocks. Hyundai Securities fell 13.5% and Daewoo Securities declined 9.8% as merger and acquisition premiums built into the stock prices subsided.

In Australia, the market closed at a record high as speculation continued that the Future Fund of the government was buying large amounts of share price index futures. Most of the strength was seen in financials, with National Australia Bank up 0.5%, QBE Insurance up 1.1% and Macquarie Bank up 1.8%. Among resource stocks, BHP Billiton dipped 1.1% and Rio Tinto shed 0.7% after London Metal Exchange prices declined overnight.


[R]8:15AM Morgan Stanley reported 40% earnings increase in Q2.[/R]

Morgan Stanley (MS: chart) announced that its Q2 net income rose 40% to $2.58 billion, or $2.45 a share, from $1.84 billion, or $1.75 a share a year ago. Company’s revenue increased 32% from the previous year to $11.5 billion. Quarterly results exceeded expectations of net income of $2.01 a share on revenue of $10.03 billion. The No. 2 U.S. investment bank attributed the earnings rise to fees from advising clients on acquisitions and stock trading. The stock jumped 1.7% in pre-market trading.


[R]7:30AM NY-6:30PM Mumbai Sensex spurts 116 points in a broad rally, led by banks and auto stocks.[/R]

The Sensex on BSE finished 116.45 points, or 0.81%, higher at 14,411.95.

The market-breadth was very strong as 1,446 stocks advanced, while 1,103 declined and 87 were unchanged. Of the 30 stocks in the Sensex, 23 advanced, while only seven declined. The turnover on BSE was Rs 5,049 crore, much higher than Rs 4,607 crore on Tuesday. On NSE, the turnover was Rs 9,977 crore, compared to Rs 8,350 crore on Tuesday.

Economic news

The rupee retreated Wednesday as an oil refiner bought dollars, but expectations of foreign investment flows into a $2.1 billion domestic share sale by ICICI Bank diminished losses. In morning trading, the rupee was at 40.83 per dollar, down from 40.79 on Tuesday.

India will approach the World Bank to take out a loan to develop an e-governance project to process all government purchases.

The petroleum ministry intends to offer additional 80 oil and gas blocks in the seventh round of auction under the New Exploration Licensing Policy, in mid-August. In February, under NELP-VI, the ministry gave 52 blocks of which 21 deep-water blocks to Oil and Natural Gas Corporation.

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