Homebuilders decline in London

Equities markets in the Asia-Pacific region were higher on Monday, with some closing on multi-year highs. Both the Taiex index in Taiwan and the Nikkei 225 in Tokyo closed at their highest levels in 7 years. The Taiex added 1.98 percent to 9,369.84 on gains in the semiconductors sector, while the Nikkei gained 0.7 percent to 18,261.98 after the lastest data showed that machinery orders were up 5.9 percent. In Tokyo, the Topix index was also higher, adding 0.7 percent as well to close at 1,792.23.

Elsewhere in the region, the Sensex added 0.55 percent to 15,045.73 in India, while the Sydney Ordinaries were 0.73 percent higher to 6,429.5. Also in Australia, the S&P/ASX200 ended the session at 6,400.6. The gains in Australia came on gains in commodity-related shares. In Hong Kong, the Hang Seng index was up 1.27 percent to 22,817.43, while the Straits Times index in Singapore gained 1.65 percent to 3,626.72.

Besides the machinery sector in Tokyo, which added 2.1 percent as a whole, the pharmaceuticals sector saw gains. Generic drug makers were higher after the news that major firms are encouraging their employees to use the less expensive alternatives to name-brand drugs. Nippon Chemiphar (TYO: 4539) was 2.5 percent higher to ¥532, while Towa Pharmaceuticals (TYO: 4553) gained 2.6 percent to ¥5,170 and Sawai Pharmaceuticals (TYO: 4555) was up 3.3 percent to ¥4,430. In the electronics sector, Sony (TYO: 6758; NYSE: SNE) dropped 0.2 percent to ¥6,530 after the company said it will cut the price of its PlayStation 3 console by $100 in the United States. On the other hand, Toshiba (TYO; 6502; LSE: TOS) added 2.9 percent to ¥1,083 after it said it is talking with Kazakh energy company Kazatomprom about selling part of its stake in a nuclear power plant there. The real estate sector saw declines after the news on machinery orders as investors worried that the new data could send interest rates higher. The sector as a whole was 0.8 percent lower.

Most European markets were higher on the session. The main exception on the continent was the IBEX, which dropped 0.56 percent to 14,974.7 in Madrid. In Paris, the CAC-40 was 0.03 percent higher to 6,104.39, while the Dax added 0.36 percent to 8,077.39 in Frankfurt. The FTSE Eurofirst 300 added 0.35 percent to 1,625.52. The telecommunications sector saw gains. In Paris, France Telecom (Eurofirst: FTE; NYSE: FTE) was up 1.62 percent to €20.73, while in Frankfurt Siemens (FWB: SIE; NYSE: SI), which has telecommunications interests among others, gained 1.8 percent to €111.06. Airlines also saw gains. Lufthansa (FWB: LHA) added 1.01 percent to €20.98, while Air France (Euronext: AF; NYSE: AKH) was up 1.91 percent to €34.18. In the steel sector, Mittal Steel (Euronext: MT; NYSE: MT) had the best day in Paris, adding 2.75 percent to €48.97, while in Frankfurt ThyssenKrupp (FWB: TKA; LSE: TKA) gained 1.61 percent to €46.08.

Carmakers were mixed on the session. While Peugeot (Euronext: UG; OTC: PEUGY) was 0.69 percent higher to €65.48 and DaimlerChrysler (FWB: DCX; NYSE: DCX; TYO: 7663) gained 0.95 percent to €69.09, Renault (Euronext: RNO) was 0.68 percent lower to €119.35. In a related sector, tire maker Michelin (Euronext: ML) was up 0.54 percent to €106.12. Utilities were lower in Paris, with Suez (Euronext: SZE; NYSE: SZE) dropping 1.28 percent to €41.46. Meanwhile, EDF (Euronext: EEN) had the worst day on the CAC-40 as it fell 2.08 percent to €76.31. French banks also saw declines. Credit Agricole (Euronext: ACA) was 0.47 percent lower to €29.76, while Societe Generale (Euronext: GLE) fell 0.63 percent to €137.92. The worst performer on the day on the Dax was drug maker Bayer, which was 1.32 percent lower to €55.93.

In London, the FTSE 100 added 0.34 percent to 6,712.7, while the FTSE 250 dropped 0.16 percent to 11,847.8. Much of the gains on the session were produced by the mining sector, which saw advances as copper prices remained strong and after JPMorgan (NYSE: JPM; TYO: 8634) raised target share prices for several of the miners. BHP Billiton (LSE: BLT; ASX: BHP; NYSE: BHP) gained 1.78 percent to £15.43, while Antofagasta (LSE: ANTO) was 2.71 percent higher to 681.5p. Xstrata (LSE: XTA) added 2.88 percent to £33.60 and Kazakhmys (LSE: KAZ) was up 4.21 percent to £13.60. Other gainers included food processor Tate & Lyle (LSE: TATE) which added 4.69 percent to 580p for the best performance on the 100. Housebuilders put in the worst performances of the session on both the 100 and the 250. Persimmon (LSE: PSN) dropped 4.12 on the 250 to £11.64, while on the 100 Bovis Homes fell 10.86 percent to 820.5p. Other decliners in the sector included Redrow (LSE: RDW), which was 5.36 percent lower on the 250 to 512p and Barratt Developments (LSE: BDEV), which was down 2.32 percent to 991.5p on the 100. The declines in the sector were blamed on caution in the face of higher interest rates.

In early afternoon trade in New York, the Dow Jones Industrial Average had added 0.34 percent to 13,657.53, while the Nasdaq Composite gained 0.08 percent to 2,668.52 and the S&P 500 was 0.07 percent higher to 1,531.51. The gains came as the earnings season was about to get underway. Mergers and acquisitions activity was in focus with a report that Apollo Management has raised its offer for chemicals group Huntsman (NYSE: HUN) to $28 per share. Huntsman added 20 cents to $28.20. FedEx (NYSE: FDX) gained 4.2 percent to $115.51 after a media report that private equity could be interested in making a bid. Meanwhile, Boeing (NYSE: BA) was 92 cents higher to $99.80 in the wake of its unveiling over the weekend of its new aircraft, the Dreamliner 787. Reports are that the aerospace group has received enough orders for the new plane that it is sold out until 2015. Pharmaceutical and consumer products group Johnson & Johnson (NYSE: JNJ) added $1 to $63.13 after its board approved a share buyback worth $10 billion. Exchange operators were mixed on the expectation that shareholders in the Chicago Board of Trade (NYSE: BOT) are likely to approve a deal to merge with the Chicago Mercantile Exchange (NYSE: CME). While the Intercontinental Exchange (NYSE: ICE), which has also bid in for CBOT, added 46 cents to $156.55, CME dropped $4.29 to $570.51 and CBOT declined $1.60 to $222.40.