Market Report - Asia Stocks Up, Inflation Rises

ZHANG:
Asia stocks gained on Monday. Investors piled back into the financial sector after a smaller than expected loss at U.S. giant Citigroup late last week.

Major banks such as Hong Kong's HSBC were among the top performers.

But around the region are signs that demand is weak and inflation continues to rise.

New research showed personal computer shipments in Asia grew by a less than expected 15 percent in the second quarter. The data excluded Japan but showed
that growth in key markets such as India and Korea was softer than expected.

In other news, Vietnam raised fuel prices by as much as 36 percent--just two weeks after the government ruled out a rise in fuel prices for the rest of the year.

The steep increase came as a shock to consumers. Vietnam now follows other Asian nations that have hiked consumer gas prices thanks to the sky-high
cost of global oil.

On the upside, Korea's LG Electronics reported an 84 percent jump in quarterly earnings. The company was helped by high margins for mobile phones and strong TV sales.

The world's fourth largest phone maker said it expected to post strong sales in its resilient mobile phone division, despite slowing global consumer demand.

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