LONDON (MarketWatch) -- European stocks traded in a tight range Wednesday after setting fresh 14-month highs in the previous session, with Swiss pharmaceutical company Basilea falling sharply after a setback on a key drug.

The Dow Jones Stoxx 600 index fell 0.1% to 253.97 after Tuesday marked the index's highest close since October 2008.

Among the main country indexes, the German DAX 30 index fell 0.1% to 6,004.58, the French CAC 40 index dipped 0.03% to 3,959.52 and the U.K.'s FTSE 100 index rose 0.1% to 5,441.15.

Basilea was the standout faller, with its shares dropping 28% after the company, which holds the patent on ceftobiprole, said the U.S. Food and Drug Administration had rejected Johnson & Johnson's application to market the drug.

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The FDA said some of the data underpinning the drug application were "unreliable or unverifiable," and recommended that two new studies be carried out, according to a statement from Basilea.

There were relatively few other big movers in Europe, though Bank of Ireland lost 2.7% in Dublin in a mixed session for European bank stocks.

Airlines were also mostly lower, with Ryanair Holdings down 1.5% and easyJet down 1% in London and Air France-KLM down 0.6% in Paris.

Shares in Japan Airlines had earlier plunged around 25% in Tokyo on concerns that the struggling group may file for bankruptcy protection.

Among stocks rising Wednesday was medical-supplies distributor Euromedis Group , which gained 9.6% in Paris after reporting an 11% rise in its fiscal first-quarter revenue.

Europe Markets: European shares in tight range as Basilea slumps

MANILA, Nov. 23 (Xinhua) -- Philippine President Gloria Macapagal-Arroyo assured to the visiting team of the International Monetary Fund (IMF) on Monday the country's economic managers can maintain fiscal stability.

"The IMF need not be concerned about the Philippines' commitment to fiscal stability which has been duly recognized through our successive credit rating upgrades," Deputy Presidential Spokesperson Gary Olivar said in a statement.

The dwindling revenues combined with stimulus spending and post-calamity reconstruction programs have led to a huge budget deficit. With the fiscal deficit hitting 266.1 billion pesos (5.6 billion U.S. dollars) by end-October, or 16.1 billion pesos (341.1 million U.S. dollars) more than what was programmed for the whole year, the IMF is asking how the Philippine government can close narrow a huge deficit low fee payday loans.

But Olivar noted that despite increased government spending, the country's deficit-to-GDP ratio remains manageable and under 4 percent.

"Fiscal space remains ample," Olivar said, adding that the government is redoubling tax collections, lobbying the Congress to pass laws to raise revenues and are selling state-owned assets to close the budget gap.

A visiting IMF mission is in Manila this week in line with the so-called Article IV of the agreement with member countries.

A senior Philippine economic manager said the IMF team is interested to know how the Philippine government can improve its tax collection. Special Report: Global Financial Crisis

Philippines can maintain fiscal stability: President Arroyo

BEIJING, Nov. 15 (Xinhua) -- China should enhance supervision and management of the country's insurance investment, said Li Kemu, vice chairman of the China Insurance Regulatory Commission (CIRC),on Sunday.

"With insurance funds were extended into disparate fields, other than bank deposit, demand for a better supervision and risk control enhanced, said Li at the International Finance Forum held in Beijing.

By the end of September, 3.4 trillion yuan (497.8 billion U.S. dollars) of insurance funds were invested in bonds, mutual funds, and stocks markets. Bonds investment alone accounted for 50.6 percent of the total.

Jiang Dingzhi, China Banking Regulatory Commission (CBRC) Vice Chairman also highlighted the importance of establishing a "all-coverage" financial supervision system guaranteed online payday loans.

He suggested the country broaden the financial supervision and management system, which would put the mutual funds, hedge funds, and credit risks appraisal agencies under control.

The new system requires financial institutions to share information, and also cooperate to fill the supervision blanks between different financial markets, he said.

Chinese insurance regulator stresses supervision on insurance investment

SAN FRANCISCO/LOS ANGELES (Reuters) – Wal-Mart Stores Inc (WMT.N) is helping "well over 1,000" of its apparel suppliers secure financing based on the strength of its own credit rating.

The program, outlined in a November 2 letter to suppliers, was designed to address concerns about liquidity, company spokesman John Simley said.

"We didn&&9;t want our suppliers to be in a position where they could not secure financing at an attractive rate," he said.

Under its "Supplier Alliance Program," an eligible supplier can go to a bank with a purchase order from Wal-Mart and the bank can arrange for financing based on Wal-Mart&&9;s strong financial position.

The retailer, which has a AA credit rating, said it has partnered with Wells Fargo & Co (WFC.N) and Citibank Inc (C.N) to provide the program.

"We&&9;re not underwriting and we&&9;re not extending our (credit) rating," he said.

Factors buy receivables -- or the right to receive money owed by retailers -- from suppliers at a discount so that those suppliers continue to have working capital.

But worries about the health of factors has heightened following the November 1 bankruptcy of CIT Group Inc (CITGQ easy payday loans.PK), a major player in the factoring industry.

"We know that many of our suppliers are dependent upon factoring and financing companies that are reportedly in financial distress," Wal-Mart wrote in its letter to supplies.

"We are contacting you as part of our effort to proactively minimize the exposure of our supplier base to the financial difficulties of any particular factoring source."

Wal-Mart&&9;s ultimate goal with the program though is to keep its own costs down.

"It gives us a more secure supply of the things we need to sell and, if the suppliers are getting a little bit better rate because their loan was negotiated on the strength of our financial position, we can lower our costs and that can be passed on in the form of lower prices," Simley added.

(Reporting by Nicole Maestri and Lisa Baertlein; editing by Leslie Gevirtz and Andre Grenon)

Wal-Mart helps apparel suppliers secure financing

BEIJING, Nov. 8 (Xinhua) -- The output value of China's energy saving and environmental protection industry would hit 2.8 trillion yuan (412 billion U.S. dollars) by 2012, said Xie Zhenhua, deputy director of the National Development and Reform Commission on Sunday.

Those sectors have become a new economic growth point and have bright prospects in China, Xie said at the fourth China-Japan Energy-saving and Environment Protection Forum which began Sunday.

He said the government will beef up investment in the construction of resource recycling projects, which will directly boost the industry development.

He noted the government will further reform the pricing system of the resource products online payday loans.

Enterprises should also enhance innovation to break technological bottleneck notably in the development of clean coal transfer technology and pollutants treatment facilities.

China has been pushing for a national energy saving campaign to address the worsening conflicts between economic growth and environmental deterioration.

China's energy-saving, environmental protection industry has bright prospect

WASHINGTON (Reuters) – Bank regulators closed Gateway Bank of St. Louis, in St. Louis, Missouri, and Prosperan Bank, of Oakdale, Minnesota, on Friday, the 118th and 119th U.S. bank to fail this year.

The Federal Deposit Insurance Corp said Gateway Bank of St Louis had &&6;27.7 million in assets and &&6;27.9 million in deposits. The bank&&9;s sole office will reopen on Saturday as a branch of Central Bank of Kansas City, Missouri, which assumed Gateway&&9;s assets bad credit payday advance.

The FDIC entered into an agreement with Alerus Financial NA, of Grand Forks, North Dakota, to assume all of Prosperan&&9;s &&6;175.6 million in deposits and about &&6;173.9 million of its &&6;199.5 million in assets.

(Reporting by Charles Abbott; editing by Carol Bishopric)

U.S. regulators close Gateway Bank, Prosperan Bank

HONG KONG &S212; Asian stock markets fell on Thursday as worries about the global economic recovery had investors eagerly awaiting the U.S. monthly jobs report that is due on Friday.

The Nikkei 225 stock average in Tokyo lost 1.2 percent with Canon and other exporters slipping as investors, prompted by a slightly stronger yen, locked in profits before the release of U.S. jobs data.

But Nissan Motor rose 1.1 percent after the automaker revised its annual outlook to a profit from a loss on Wednesday as soaring sales in China helped drive quarterly earnings beyond market expectations.

The benchmark Nikkei lost 113.63 points to 9,730.68 in late morning trading and appeared headed for its lowest close in a month. The broader Topix shed 0.7 percent to 874.78.

As expected, the Federal Reserve reiterated its intent to keep U.S. interest rates low on Wednesday. Though Wall Street rallied in response, it soon lost steam, with investors turning their eyes to jobs data to be published Friday.

&S220;A lot of investors are likely to be stay on the sidelines ahead of the jobs data, given that the September figures were worse than expected, and this is likely to keep stocks weak until then,&S221; said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.

Seoul shares turned lower after a brief rebound the day before, weighed down by caution over the pace of an economic recovery and as the firmer won hammered exporters like LG Electronics.

Investors are on the lookout for fresh economic data to restore confidence in stocks as they awaited the U.S. monthly jobs data and the Bank of Korea&S217;s monthly rate-setting meeting next week online pay day loans.

&S220;Investors are looking at the first batch of fourth-quarter indicators now that we are unsure about whether markets will remain solid in November or not,&S221; said Kim Seung-han, a market analyst at HI Investment & Securities.

The Korea Composite Stock Price Index dropped 1.1 percent to 1,563.07 points.

Shares in LG Electronics, the maker of mobile phones and flat-screen TVs, dropped 2.3 percent. Samsung Electronics shed 1.6 percent, after it told the Korea Exchange that it would make a $1.3 billion down payment to Qualcomm under a new licensing agreement.

Australian shares extended losses to be 0.5 percent lower on Thursday, with banks and miners mixed amid a market consolidation after strong gains between March and October.

The benchmark S&P/ASX 200 index fell 20.8 points to 4,519.3.

Major sectors like banks and miners saw mixed fortunes as the market continues its broad consolidation after posting strong gains between March and October.

Hong Kong stocks fell 0.4 percent, tracking losses in other Asian markets, although the Chinese property developer Evergrande Real Estate rose in its trading debut. Evergrande traded at 4 Hong Kong dollars versus its IPO price 3.50 dollars.

Shanghai stock markets rose 0.3 percent. The Taiex in Taipei edged up 0.07 percent amid concerns over shrinking trade volumes, but computer memory chip makers like Nanya Tech surged on positive October sales and an upbeat fourth-quarter outlook.

Reuters

Stock Markets Drop in Asia

HONG KONG, Oct. 23 (Xinhua) -- A survey on Friday showed 30 percent of business owners in Hong Kong expect a profitable fourth quarter, the most optimism seen since the financial turmoil erupted in the third quarter of last year.

The quarterly business tendency survey by the Hong Kong government's Census and Statistics Department found 30 percent respondents expect their business situation to be better in the fourth quarter over the third, with 17 percent forecasting it to worsen.

The proportion of respondents expecting their business situation in the fourth quarter to be better than the preceding quarter grew to 30 percent, as compared with 11 percent and 20 percent in the second and third quarter.

The retail sector has the most favorable outlook, followed by the financing and insurance sector. However, 38 percent of respondents in the construction sector expect business to fall.

Consistent with the expectations on the overall business situation, respondents in most of the surveyed sectors expect an increase in volume of business or output in the fourth quarter new car loans. Significantly more respondents in the retail sector, and financing and insurance sector, expect their volume of business to increase, as against those expecting it to decrease.

Respondents in most surveyed sectors have a favorable employment outlook for the fourth quarter. Yet more respondents in the import-export trade, and the wholesale and information and communications sectors, expect employment to fall.

More respondents in the real estate, retail, accommodation and food services, and transportation, storage and courier services sectors expect their selling price or service charge to rise, than those expecting it to go down. More respondents in the construction sector expect their tender price to decline, than those expecting it to rise.

HK business forecast better for Q4: survey

M&>01;RIGNAC, FRANCE &S212; On a recent afternoon at the sprawling Dassault Aviation plant, on the perimeter of the Bordeaux airport, the smell of kerosene hung in the air as engineers tested hydraulics and fuel systems on the combat jet Rafale.

Those planes are destined for delivery to the French military, just like the previous 70 to 80 that have rolled off the assembly line. But there&S217;s a sense of cautious optimism here that the Rafale is finally within touching distance of a long-sought goal: its first foreign sale.

A tentative, &S364;5 billion deal with Brazil, announced last month, would go some way toward offsetting the downturn at Dassault&S217;s commercially more important Falcon business jet division. It also would help France to recapture some of the glory &S212; and export revenue &S212; lost when the Rafale&S217;s illustrious predecessor, the Mirage, ceased production in 2007.

The Brazilians, emboldened by their booming economy, are looking for a flexible, twin-engine combat jet to guard their offshore oil deposits and the vast Amazon rainforest. But should the deal go through, they would get more than just 36 planes.

The sale also includes a total transfer of technology that would enable Brazil to assemble most of the Rafale jets itself, and the right to sell them regionally. The contract might rise to 120 aircraft.

The terms illustrate the pressures on Dassault and a handful of other defense companies competing in a tightening global market.

Not only are advanced new American and European jets coming to market, but looming on the horizon are the prospect of advanced unmanned fighters and even competition from China, using technology acquired from Israeli and Russian jets.

Jean-Paul H&>33;bert, a strategic expert at the &>01;cole des Hautes &>01;tudes en Sciences Sociales in Paris, says Dassault is facing &S220;an appallingly hard decision&S221; as it debates the post-Rafale era.

&S220;Long-term research costs are very heavy and the French arms industry has not been that commercially very successful alone,&S221; he said.

With defense budgets under pressure and many potential clients tied to U.S. fighters, Dassault, which ranks with EADS and Thales among the biggest French defense contractors, has been fighting for leftovers.

Along with market leaders like Boeing and Lockheed Martin, Dassault&S217;s competitors include the advanced but expensive pan-European twin-engine Eurofighter, which operates in Europe and Saudi Arabia; the Saab Gripen, in Sweden, the Czech Republic, Hungary and South Africa; and the Russian Sukhoi and MIG.

&S220;The market is shrinking and there are too many players,&S221; said Eugene Kogan, guest researcher at the International Institute for Liberal Policy in Vienna. &S220;And it looks like China may soon start to move into some of the markets once dominated by Russia.&S221;

The Rafale was conceived in the mid-1980s and first test flown in 1991, as a successor to a series of aircraft that included the Mirage, which earned its stripes during the Six-Day War in the Middle East. Some 2,800 Mirages were delivered, more than half &S212; 57 percent &S212; for export.

But the French military wanted new capabilities, and so Dassault turned to the Rafale. The first prototype was built in 1986 and it entered service in 2001. Its sleek twin or single seat jets are recognizable by their main Delta wings and mini canard wings below the cockpit; land and sea versions have been built. Its engine is made by the French company Snecma, and Dassault expects the plane to be enhanced by an upgraded RBE2 radar from Thales, in which Dassault this year took a 26 percent stake.

Dassault has come close to exporting the Rafale before, notably to Morocco in 2007 and Singapore and South Korea previously, but those governments opted instead for U.S. hardware. The disappointments were blamed on bureaucratic problems in Paris and Washington&S217;s greater clout.

The Brazil package would be complex. Six jets would be made in France and 30 assembled in Brazil by Embraer, in which Dassault has a stake of 0.9 percent. The contract might expand to 120 aircraft, and comes alongside sales of other French hardware to the country and planned purchases by France of Brazilian transport planes instant payday loan.

&S220;It looks like technology transfer was pretty critical,&S221; said Rebecca Grant, senior fellow at the Lexington Institute, a research body in Arlington, Virginia.

The Saab Gripen, with its General Electric engine and Italian radar, seems to offer less in transfers; Brazilian demands may have gone beyond what Washington was willing to envisage, according to analysts.

Mrs. Grant also noted that the market will get even tougher once the Joint Strike Fighter from Lockheed Martin arrives in the next few years. Also known as the F-35, it appears to be the favored choice among NATO countries like Norway, the Netherlands and Poland, who are tempted by shared production to replace their mainstay F-16s.

&S220;The Rafale hasn&S217;t established itself a big customer base, so it&S217;s less flexible,&S221; Mrs. Grant said. &S220;You can&S217;t underestimate the importance of interoperability and costs.&S221;

&S220;Interoperability&S221; refers to the maintenance of jets on bases across the globe. Dassault argues that the Rafale&S217;s service in Afghanistan since 2007 proves this is not an issue.

Dassualt also says that there have been no cost overruns for the program, scheduled to run until around 2025 and scaled back to 294 jets for &S364;28 billion.

The stike fighter of Lockheed Martin, hit by delays, is now projected by the U.S. Government Accountability Office to cost Washington $300 billion for 2,440 deliveries, above 2001 estimates of $233 billion for 2,860.

Despite interest in the sale to Brazil, Dassault&S217;s most important product is the Falcon business jet, which has been transporting royalty, pop stars and chief executives for decades.

Over the past five years, Falcons represented on average 60 percent of sales and 80 percent of orders; Dassault received 115 orders in 2008, down from 212 a year earlier, and expects even fewer this year.

Falcons, which cost from $30 million to $50 million, are finished in Little Rock, Arkansas, from parts built in France.

At M&>33;rignac, workers were assembling a Falcon 7X for Warren Buffet&S217;s NetJets. Other clients like Royal Bank of Scotland and Citigroup cancelled orders last year during the financial meltdown.

Olivier Brochet, an analyst at Natixis Securities, said Rafale exports might help offset lower demand for the Falcon.

The market consensus for Dassault is 2009 revenue of &S364;3.5 billion and profit of &S364;289 million, down from 2008 revenue of &S364;3.75 billion and profit of &S364;373 million.

Dassault&S217;s share price appears to be influenced partly by liquidity, with 50.5 percent of the company held by the Dassault family &S212; which has a host of other interests in areas as diverse as media, wine, auctions, software and electric cars. Another 46 percent is held by EADS. So far this year, the shares are up 20 percent at about &S364;480.

With its modest size &S212; the group employs 12,500 &S212; Dassault has retained a reputation for agility not always apparent in French industry.

But unless Europeans can cooperate and move away from domestic champions, they will suffer in the race to supply the next generation of fighters, said Mr. Kogan from the Vienna-based institute.

Dassault appears to be thinking along the same lines. Eric Trappier, executive vice president at Dassault Aviation, said that Rafale&S217;s &S220;successor will probably be designed through a European cooperation, from 2025.&S221;

Back in M&>33;rignac, a Rafale was being towed away for delivery to French forces after assembly and testing.

&S220;It&S217;s always difficult to see an aircraft leaving,&S221; an employee sighed, &S220;it&S217;s our baby.&S221;

That pain might be easier to bear if future Rafales are destined for South America.

Jet Deal a Sign of Small Defense Contractors’ Woes

Deputy commander of the Iranian Revolutionary Guard's ground force, Gen. Noor Ali Shooshtari is among those killed in the attack, Sunday, 18 Oct. 2009

Iranian state media report that a suicide bomber in the troubled southeast killed at least 30 people early Sunday, including six commanders of Iran's elite Revolutionary Guard force.  Iranian state media say the suicide bomb blast killed the deputy commander of the Revolutionary Guards ground forces and the commander of the Guards in the troubled Sistan Baluchistan region, which borders Pakistan.The reports say the attacker targeted people gathering in the city of Pisheen for a reconciliation meeting between local Shi'ite and Sunni leaders.  Minority Sunni groups, in particular ethnic Baluchis, have long complained of discrimination in the Shi'ite dominated country.The chief prosecutor in the region was quoted as saying the Sunni insurgent group Jundallah, or Soldiers of God, claimed responsibility for the attack.  There has been no direct word from the group, which has carried out anti-government attacks in the past.Paul Ingram, co-director of the London-based  British-American Security Information Council, notes that similar attacks have been going on for years.  But he says this one stands out. "This is a very unusual attack in as much as it appears to be a successful attack upon the Revolutionary Guards at such a high level involving so many of the senior officers," he said online cash advance.Iran's speaker of parliament, Ali Larijani, accused the United States of being behind the attacks.   The U.S. State Department condemned what it called "this act of terrorism" and mourned the loss of innocent lives.  It said allegations of U.S. involvement were "completely false." Security analyst Paul Ingram says such allegations are problematic. "It is very difficult to really pin down and there have been these sorts of accusations from the Revolutionary Guards in the past," he said.Ingram notes the Iranian government has an interest in deflecting blame to foreign elements.Tehran is under pressure both at home, over the disputed presidential election in June, and abroad, for its controversial nuclear program, which the United States suspects could be aimed at developing nuclear weapons.  Iran, which denies that charge, has recently agreed to allow western inspectors to look at a newly revealed uranium enrichment facility and has been holding talks with the United States and other western nations on ways to ease concerns about its nuclear program.

Suicide Blast in Iran Kills Top Revolutionary Guard Leaders

BRUSSELS, Oct. 16 (Xinhua) -- A top European Union competition official has expressed concern over Germany's planned financial aid for a deal that would see car-parts maker Magna and a partner take a majority share in troubled carmaker Opel.

EU Commissioner for Competition Neelie Kroes voiced her concerns by writing to German Economics Minister Karl Theodor zu Guttenberg, a news release from the EU's executive Commission said here on Friday.

Kroes wrote that there were significant indications that the German government's promised aid to Opel was on condition that a specific bidder was selected to acquire a majority of the shares in the carmaker.

Such a precondition would be incompatible with EU state aid and internal market rules, she noted outdoor fireplace plans.

She urged the German government to give Opel's parent company GM an opportunity to reconsider the outcome of the bidding process on the basis of firm written assurances that the aid would be available irrespective of the choice of investor.

The Commission said that Kroes also sent the letter to Austria, Britain, Spain, Belgium, Poland and Hungary, where Opel has activities. Special Report: Global Financial Crisis

EC expresses concern over Opel aid

BRUSSELS &S212; The economy of the euro zone shrank more than expected in the second quarter of this year because private demand and trade were lower than previously estimated, data released Wednesday showed. But analysts said it was still likely that the region was already returning to growth.

The European Union statistics office Eurostat reported that gross domestic product in the 16-country euro area contracted 0.2 percent in the April-to-June period, compared with the previous quarter, and by 4.8 percent in annual terms.

This compared with the previously reported drops of 0.1 percent and 4.7 percent. Economists polled by Reuters had expected Eurostat to confirm its previous estimates.

But Howard Archer, an economist at Global Insight, said that what he termed the &S220;modest downward revision&S221; in figures for the second quarter &S220;does not materially change the picture.&S221;

&S220;It still indicates that the euro zone economy was close to stabilizing in the second quarter after a year of deep overall contraction, and it still seems likely that the region returned to growth in the third quarter, albeit modest,&S221; he said.

He forecast 0.3 percent growth in the just-concluded third quarter, compared with the second.

A plunge in inventories was slightly smaller than previously reported immediate payday loans online. The drop in stocks of finished goods took away 0.6 percentage point from the overall result in the second quarter, rather than the 0.7 percentage point reported previously.

Also the contribution from government spending was higher than previously reported, at 0.2 percentage point, rather than just 0.1 percentage point, showing the positive effects of stimulus packages that have injected money into economies.

But this was more than offset by a downward revision of the positive contributions made by household demand and trade. Consumer demand was zero rather than a positive 0.1 percentage point and trade added 0.5 percentage point, rather than 0.7 points as estimated earlier.

Eurostat data also showed the recession turned out to be deeper than previously estimated in the Netherlands and Austria.

The data is likely to add to European Central Bank caution not to withdraw its monetary stimulus prematurely when the E.C.B. meets to decide interest rates on Thursday.

Economists say they believe the E.C.B. will keep rates at a record low 1 percent until the third quarter of 2010.

Reuters

Euro-Zone G.D.P. Shrank More Than Expected in Quarter

Hot News: Regulators Plan to Study Risks of Atrazine

SINGAPORE (Reuters) – Singapore&&9;s largest sovereign wealth fund GIC said on Tuesday it had halved its stake in Citigroup (C.N) to below 5 percent, making a profit of &&6;1.6 billion as global equity markets rebound.

The stake sale came after Singapore&&9;s smaller fund Temasek Holdings lost an estimated over &&6;4 billion in Bank of America-Merrill Lynch (BAC.N) and Barclays (BARC.L) in hasty exits around the start of 2009.

Analysts said GIC, also known as the Government of Singapore Investment Corp, took advantage of a rally in world stocks to take some money off the table and the sale suggested the fund may have some concerns about the outlook for global banks.

"Perhaps timings wise GIC benefited from the rally," said Song Seng Wun, an economist at CIMB.

"The sale also reflects underlying concerns that although global institutions may have seen their darkest days, there could still be uncertainty ahead as OECD countries in particular could see patchy growth as a result of the recession," he said.

From late 2007, GIC plowed billions of dollars into Citigroup and UBS (UBSN.VX) and like other sovereign funds, had suffered initial losses in battered global banks as the financial crisis hit companies no fax needed payday loans.

Ng Kok Song, group chief investment officer of GIC, which manages an estimated &&6;200 billion-plus in assets, said the fund realized a profit of &&6;1.6 billion from the sale of Citigroup shares.

The Singapore investor had a profit including unrealized gains of about &&6;3.2 billion based on Citigroup&&9;s closing price of &&6;4.43 on Sept 21, he said.

On Sept 11, GIC exchanged its &&6;6.88 billion holding of Citigroup convertible preferred stock into ordinary shares at &&6;3.25 a share as part of a rescue package, gaining in the process an over-9 percent stake in the U.S. bank.

"A stake below 5 percent reflects GIC&&9;s goals and desire to be a portfolio investor," it said in a statement. "GIC will continue its investment in Citigroup as we are confident of its long-term prospects." (Reporting by Kevin Lim and Saeed Azhar; Editing by Anshuman Daga)

GIC trims Citi stake to below 5 percent

BEIJING, Sept. 20 (Xinhua) -- China's major state-owned enterprises (SOEs) under the supervision of the central government reported a 30-percent fall in net profit last year, the country's state assets supervisor said over the weekend.

A total of 141 SOEs under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council reported a net profit of 696.18 billion yuan (101.96 billion U.S. dollars) last year, down 30.8 percent from a year ago, the commission said in an online statement.

Yet, total assets of the 141 SOEs rose for the fifth consecutive year since 2004. Assets of the 141 state firms were worth 5.56 trillion yuan at the end of 2008, up 8.6 percent from the previous year.

Net profit of centrally administered SOEs had been rising for four years in a row from 2004 to 2007, but it fell last year as the global financial crisis struck no fax cash advance.

The commission said 83 out of the total 141 were able to report a year-on-year growth in net profit last year.

These 141 SOEs also turned in taxes worth 1.04 trillion yuan last year, up 18.6 percent from a year ago.

The total assets of centrally administered SOEs were augmented by 2.6 trillion yuan in the past five years, or at an annualized average of 13.7 percent from 2004 to 2008. Special Report: Global Financial Crisis

China's major SOEs report 30% fall in profit last year

HONG KONG (Reuters) – Asian stocks retreated from 13-month highs on Friday as a conflicting picture about the strength of U.S. economic recovery stopped investors from extending this week&&9;s rally but gave some respite to a battered U.S. dollar.

European stocks futures were down 0.4 percent while U.S. equity futures were 0.3 percent lower, pointing to a weak start for shares in Europe and the United States.

Investors in Japan were cautious ahead of a stretch of public holidays early next week even though the Bank of Japan deputy governor, Hirohide Yamaguchi, said a positive business cycle was starting and signaled the central bank could soon withdraw emergency support for corporate funding.

"A pickup in the global economy is expected to continue for some time," Yamaguchi told a forum in Tokyo.

The Nikkei index (.N225) fell 0.7 percent, breaking a three-day rally.

Shares in Shanghai (.SSEC) were down 1.7 percent by early afternoon as investors fretted about the prospect of a sharp rise in shares from upcoming IPOs and worried that recent gains may be overdone.

Stock market jitters took pressure off the dollar, which held above one-year lows reached on Thursday against a basket of currencies (.DXY), although analysts said its respite could be temporary.

"We are seeing a bit of a pullback but the broader U.S. dollar weakness remains intact as it turns to be the currency for carry trades," said Jonathan Cavenagh, currency strategist at Westpac in Australia.

OPTIMISM TEMPERED

Investors across Asia stood back after equities hit their highest level in 13 months on Thursday. While there is growing confidence the global economy is on an uptrend there is uncertainty about the strength of that recovery.

Data on Thursday showed U.S. housing starts hit their highest level last month since November, but a rise in the number of Americans drawing long-term unemployment compensation tempered optimism for a sharp rebound in the world&&9;s biggest economy.

The MSCI index of Asia Pacific stocks traded outside Japan ( bad credit payday advance.MIAPJ0000PUS) dipped 0.6 percent, after surging 80 percent since mid-March when markets started to rally on investors&&9; hopes that the financial crisis had bottomed out.

Shares in Korea bucked the region as the KOSPI index (.KS11) eked out a 0.3 percent gain, helped by foreign investors picking up shares before global index compiler FTSE promotes South Korea&&9;s share market to developed market status, from advanced emerging market, from Monday.

Japanese government bond futures rebounded in early trade as Tokyo stocks fell, but December 10-year JGB futures were virtually flat by late afternoon at 138.55.

Finance Minister Hirohisa Fujii said the government could cut new JGB issuance this fiscal year when the new government reviews an extra budget compiled by the previous government, but gave no details.

Gold edged up to &&6;1,012.20 an ounce from its New York close at &&6;1,011.45, but below an 18-month high of &&6;1,023.85 on Thursday.

Seen as a hedge against potential inflation, gold is likely to stay firm and many market participants still expect it to break through its record high of &&6;1,030.80.

Otherwise, commodity (.CRB) prices slipped on uncertainty about the strength of the global economic recovery and the oil price edged down 34 cents to &&6;72.13 a barrel.

Weaker commodity markets put pressure on shares of Australian resources companies, such as mining giant BHP Billiton (BHP.AX) which fell 2.3 percent, and helped push the Aussie dollar below Thursday&&9;s one-year high.

But shares in Qantas Airways (QAN.AX) jumped 3.7 percent after positive comments on the carrier from broker RBS.

Qantas was also reported to be teaming up with American Airlines and British Airways (BAY.L) to expand an alliance with cash-strapped Japan Airlines (9205.T), whose shares rose 2.4 percent.

(Additional reporting by Anirban Nag in Sydney and Leika Kihara in Tokyo; Editing by Jan Dahinten)

Asian shares retreat, dollar gains respite