Stock market fixing:

Nikkei -25.75 -0.20% 12,752.96
Topix -5.66 -0.5% 1,223.69
FTSE +57.40 +1.05% 5,528.10
CAC +4.53 +0.10% 4,373.08
DAX -19.49 -0.31% 6,321.03
DOW +26.62 +0.23% 11,412.87
NASDAQ -3.62 -0.15% 2,361.97
S&P 500 +4.67 +0.37% 1,271.51
10yr Note -0.0700 -0.018% 3.784%
NYMEX Crude Oil +1.16 +1.01% 116.27
Gold +2.40 +0.29% 828.10

Japan's stocks declined for a second day after developer Sohken Homes Co. filed for bankruptcy, sparking concern consumers are holding back on purchases as the economy slows.

Sumitomo Realty & Development Co. slumped 2.9% while Sohken tumbled by its daily limit. Nissan Motor Co. dropped 4.7% after Morgan Stanley cut its price target. Nippon Paper Group Inc. led a gauge of papermakers to the biggest gain in three weeks as investors flocked to companies whose earnings are relatively resilient against an economic slowdown.

Bankruptcies among Japanese property companies more than doubled to 60 in July from a year earlier, according to Tokyo Shoko Research Ltd. Monthly wages in Japan rose in June at the slowest pace since November, the Labor Ministry said on Aug. 18. Meanwhile, consumer-price inflation in July probably surpassed 2% for the first time in a decade, according to the median estimate of 37 economists.

Toyota Motor Corp. lost 2.7% and Honda Motor Co. slid 2.2%.

Nippon Paper surged 5.1%, leading the Topix Pulp & Paper Index to the biggest advance since Aug. 5. Oji Paper Co. jumped 3.7%. Drugmaker Eisai Co. leapt 4%, while rival Astellas Pharma Inc. climbed 1.7%.

European stocks advanced for a second day after a report showed orders for U.S. durable goods unexpectedly increased in July and higher commodity prices boosted the profit outlooks for energy and metal producers.

ABB Ltd., the world's largest builder of power networks, jumped 2.8%, and BAE Systems Plc, Europe's biggest defense contractor, climbed 3.6%. BP Plc rose 1.8% as oil rallied for a third day, while BHP Billiton Ltd. increased 1.3% as copper, lead and nickel gained.

Stocks fell earlier today as concern deepened bank losses will spread, while European Central Bank council member Axel Weber damped speculation borrowing costs may ease. Weber said there's no scope for interest-rate cuts and the bank may even need to raise borrowing costs again once the economy emerges from its slump. The ECB raised its benchmark rate by a quarter point to 4.25% in July.

Meanwhile, Baloise Holding AG, Switzerland's third-biggest insurer, fell 7.9%. Profit dropped 42% in the first half to 268.2 million Swiss francs ($244.9 million) after income from its life business and investments fell. That missed analysts' estimates.

Scor SE climbed 1.6%. France's biggest reinsurer said first-half net income rose 24% to 225 million euros, surpassing analysts' estimates, as it used deferred tax assets to offset costs related to the acquisition of Switzerland's Converium Holding AG.

Stocks closed mixed Wednesday as investors saw a surprisingly strong reading on durable goods.

Orders for big-ticket manufactured goods jumped for a second straight month, the government reported Wednesday. Orders rose 1.3% in July, easily outpacing the 0.1% gain economists were expecting, on average. The rise was in line with the upwardly revised 1.3% increase reported in June.

While the strong durables report was a positive, investors remained concerned about the spike in oil prices as Tropical Storm Gustav neared the Gulf of Mexico and U.S. oil facilities.

The euro rose from a six-month low versus the dollar as European Central Bank council member Axel Weber said discussion about a reduction in interest rates is ``premature'' and crude oil prices increased for a third day.

The currency also advanced on speculation its largest monthly decline against the greenback since its 1999 debut was too big to sustain. The dollar gained versus the yen as orders for U.S. durable goods unexpectedly rose last month.

The Dollar Index dropped even as the Commerce Department reported that bookings for U.S. goods made to last several years increased 1.3% in July after a revised gain of the same amount in the previous month. The median forecast of economists was for no change in durable goods orders.

The euro has fallen 8% from a record of $1.6038 set on July 15 as the European economy shrank in the second quarter and crude oil declined 20% from its all-time high reached last month. The currency has dropped 5.8% against the dollar in August, the biggest monthly decline since the European currency began trading.

EUR/USD printed high on $1.4770 before falling to $1.4660 after strong US data. Later rate rebounded to $1.4740.
GBP/USD failed to break above $1.8500, spurring the position-adjustment. Rate fell to $1.8280 before recovering to $1.8360.
USD/JPY rose from Y108.70 to Y109.90.

In Europe UK CBI retail sales report is due to come with analysts predict sales fell 36% in Aug after -33% in July.In US focus will be on revised 2Q GDP data. Economists expect economy rose 2.7% q/q after previously released 1.9%.