New Zealand/Australia Morning Call-Global markets

-----------------------(07:06 / 1806
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,842.90 +192.60 NZSX 50 3,708.13
+37.40
DJIA 12,743.19 +92.83 Nikkei 13,497.16
-95.31
NASDAQ 2,413.36 +23.50 FTSE 6,029.20
+149.40
S&P 500 1,395.42 +16.87 Hang Seng 23,455.74
+667.84
SPI 200 Fut 5,980.00 +202.00 CRB Index 364.34
-5.12
Bonds
AU 10 YR Bond 93.850 -0.025 US 10 YR Bond 3.596
+0.000
NZ 10 YR Bond 6.840 -0.005 US 30 YR Bond 4.313
+0.000
Currencies (Prev at 7pm NZST)
AUD US$ 0.9038 0.8964 NZD US$ 0.7940
0.7888
EUR US$ 1.4803 1.4856 Yen US$ 106.47
106.40
Commodities
Gold (Lon) 914.75 Silver (Lon) 17.190

Gold (NY) #N/A N/A Light Crude 88.82

____________________________(Feb
4)_)___________________________
Market action to the close of New York markets on Friday.

EQUITIES

NEW YORK - U.S. stocks rose on Friday, capping Wall
Street's best week in almost five years, after Microsoft Corp's
(MSFT.O: Quote, Profile, Research) $44.6 billion bid for Yahoo Inc (YHOO.O: Quote, Profile, Research) overshadowed
news that employers cut payrolls for the first time since 2003.

Microsoft, in its biggest-ever takeover deal, offered a 62
percent premium for the Internet media company, boosting
optimism about share valuations and buoying the overall market
even as shrinking payrolls in January provided the clearest
sign yet that the economy is close to recession.

Yahoo shares led advancers on both the S&P 500 and the
Nasdaq, with a gain of nearly 48 percent, pulling its shares
closer to Microsoft's $31-per-share offer. For details see
[ID:nN01391944] Yahoo shares ended at $28.38 on the Nasdaq.

For the regular session, the Dow Jones industrial average
.DJI finished up 92.83 points, or 0.73 percent, to 12,743.19.
The Standard & Poor's 500 Index .SPX gained 16.87 points, or
1.22 percent, to 1,395.42. The Nasdaq Composite Index .IXIC
shot up 23.50 points, or 0.98 percent, to 2,413.36.

- - - -

LONDON - Britain's FTSE 100 .FTSE bounced into February
on Friday, surging 2.5 percent as merger activity heated up the
mining sector and after the leading share index put to bed its
worst ever January.

The FTSE 100 ended up 149.4 points at 6,029.2. The index
lost about 9 percent in January, a month when growing fears of
a U.S. recession repeatedly sparked stock market ructions
around the globe. But financial markets worldwide remain
jittery as investors fret over a cloudy outlook for the world's
biggest economy.

Rio Tinto (RIO.L: Quote, Profile, Research) shares surged 13 percent after aluminium
producer Alcoa Inc (AA.N: Quote, Profile, Research) and China's Chinalco teamed up to
acquire a 12 percent stake in the mining giant for $14 billion,
threatening miner BHP Billiton Plc's (BLT.L: Quote, Profile, Research) efforts to win
Rio.

- - - -

TOKYO - Japanese shares edged lower on Friday, hurt by
worries about the U.S. economy ahead of key jobs data and a
slide in Sony Corp (6758.T: Quote, Profile, Research) shares to a 14-month low after the
maker of PlayStation game gear cut its profit forecast.
Additional downward pressure came from Mizuho Financial Group
(8411.T: Quote, Profile, Research) and other banks after Mizuho reported a fall in
quarterly profit and slashed its outlook for the second time,
prompting HSBC to cut its rating to "neutral" from
"overweight".

Sony tumbled 8.2 percent to 4,790 yen, its lowest since
December 2006, after posting a small rise in quarterly
operating profit and cutting its outlook as weaker markets eat
into its investments and a firmer yen hurts overseas sales.

The benchmark Nikkei .N225 was down 0.7 percent at
13,497.16, a loss of 95.31 points. The broader TOPIX
lost 0.7 percent to 1,336.86. BANK WORRY Though the MBIA news
bolstered Wall Street, Tokyo market participants said many
worries remain.

- - - -

FOREIGN EXCHANGE

NEW YORK - The dollar rose against the euro and sterling on
Friday after stronger-than-expected manufacturing data offset
news showing the U.S. economy shed jobs last month for the
first time in 4-½ years.

The U.S. labor market contracted in January for the first
time since August 2003, according to government data on Friday.
That initially sparked widespread dollar selling.

The euro fell to $1.4796 <EUR=>, down half a percent from
late Thursday, reversing course after touching a two-month high
of $1.4952 earlier in the session, according to Reuters data.

Sterling steadily fell throughout the New York session and
was last down 1.1 percent at $1.9660 <GBP=>.

The dollar rose 0.2 percent on the day to 106.55 yen
<JPY=>, continuing to move in lock-step with equity markets.

High-yield and commodity currencies were big gainers on the
day, with the U.S. dollar falling 1 percent against its
Canadian counterpart to C$0.9935 <CAD=>.

The Australian dollar <AUD=> rose 0.9 percent to US$0.9042
and was up 2.8 percent this week. The New Zealand dollar
<NZD=>, the highest yielder among G10 currencies, was on track
for a 3.3 percent gain this week, its biggest weekly gain since
late September.

- - - -

TREASURIES

NEW YORK - U.S. government bond prices edged higher on
Friday as news of the first labor market contraction in four
and a half years heightened fears of a recession.

A surprise increase in manufacturing activity muddled the
outlook somewhat and tempered gains in Treasuries, which
normally would have received a big safe-haven boost from such a
weak jobs report.

A rally in stocks on buyout optimism also hindered bonds.

Investors continued to bet the erosion of jobs would keep
the Federal Reserve in rate-cutting mode, but traders had
factored more rate cuts into bond prices even before the data,
which left them with little room to continue gaining.

Benchmark 10-year notes <US10YT=RR> gained 1/32 in price,
pushing the yield down to 3.59 percent from 3.60 late on
Thursday. Two-year notes <US2YT=RR> gained 2/32 in price,
lowering the yield to 2.08 percent. The 30-year bond
<US30YT=RR> climbed 9/32 for a yield of 4.31 percent.

- - - -

COMMODITIES

- - - -

GOLD

NEW YORK - New York gold futures finished sharply lower in
extremely volatile trade on Friday as a dollar surge and heavy
profit taking erased the metal's initial gains following a weak
U.S. jobs report.

The gold contract for April delivery at the COMEX division
of the NYMEX GCJ8 settled down $14.50, or 1.6 percent, at
$913.50 an ounce, after trading in a $30 range. It peaked at
$941.80 and traded as low as $908.50, a one-week low.

At 2:15 p.m. spot gold <XAU=> was quoted at $910.00/910.75,
versus Thursday's New York close of $923.80/924.70. London
bullion dealers fixed the afternoon spot price at $914.75.

- - - -

BASE METALS

LONDON - Copper prices slipped on Friday but were supported
by expectations of tighter supplies from China, where power
shortages and severe winter weather have disrupted production
and transport.

Copper MCU3 for delivery in three months on the London
Metal Exchange fell to $7,250 per tonne, down $100 from its
close on Thursday. The metal is used extensively in the power
and construction industries.

At the New York Mercantile Exchange's COMEX division,
copper for March delivery HGH8 fell 2.50 cents to settle at
$3.2730 a lb, after dealing between $3.2485 and $3.3420.

The LME's three-month aluiminium contract MAL3 hit a
six-month high of $2,738 atonne. It closed at $2,655 from
$2,710 on Thursday.

Zinc MZN3 ended $30 lower at $2,475 per tonne while lead
MPB3 was last quoted at $2,825/2,830 versus Thursday's $2,820
and nickel MNI3 traded at $27,700 from $27,400 and tin MSN3
was at $16,900 from $16,975/17,025.

- - - -

OIL

NEW YORK - U.S. crude oil futures ended more than $2 lower
on Friday as data showed a loss of American jobs in January,
raising more worries that the economy may be sliding into
recession.

On the New York Mercantile Exchange, March crude CLH8
settled down $2.79 or 3 percent at $88.96 a barrel, after
moving from $88.46 to $92.12. Prices are down $11.13 or 11
percent from the record high $100.09 struck on Jan. 3.

In London, March Brent crude LCOH8 slid $2.77, or 3
percent, at $89.44 a barrel, trading $88.95 to $92.49.

- - - -