Asian markets reverse losses on mergers, commodities (Bloomberg) (29-12-2008)

Dec. 29 (Bloomberg) -- Asian stocks reversed losses in afternoon trading, as potential mergers boosted insurers, while commodity producers advanced amid rising raw materials prices.

The MSCI Asia Pacific Index added 1 percent to 88.28 as of 3:04 p.m. in Tokyo, reversing an earlier decline of 0.4 percent. Five stocks rose for every three that fell. The global financial crisis has dragged the measure down by 44 percent this year, putting it on course for the worst annual performance in its two-decade history.

Japan’s Nikkei 225 Stock Average added 0.1 percent, while India’s Sensitive Index dropped 1.6 percent. Markets in Indonesia, Malaysia, and the Philippines are closed for holidays.

Mitsui Sumitomo Insurance surged 7.9 percent to 2,875 yen. The company, Aioi Insurance Co. and Nissay Dowa General Insurance Co. are in talks to create Japan’s largest non-life insurer, two people familiar with the negotiations said. Spokesmen from the three companies said they didn’t have any announcement to make.

Elpida, Japan’s largest computer-memory chipmaker soared 13 percent to 585 yen. The company has begun merger talks with Taiwanese chipmakers including Powerchip Semiconductor Corp.

Woodside climbed 5.7 percent to A$34.77. Inpex Corp., Japan’s largest oil explorer, rose 6.9 percent to 667,000 yen.

Source: Bloomberg