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

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. 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.


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

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%.


[R]8:15AM Rio Tinto agreed to buy Alcan for $38.1 billion.[/R]

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%.


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

The Sensex on BSE finished 181.42 points higher Thursday, or 1.22%, at 15,092.04.