FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS:

The Dow industrials rose Tuesday for the first day in five sessions as a reading on the service sector unexpectedly rose and officials from industrialized countries discussed the ongoing European crisis. The Dow Jones Industrial Average added 26.49 points, or 0.22%, to 12127.95.

The blue-chip benchmark retreated in previous sessions on weak job-market and manufacturing data, closing at a low for the year Monday. The Standard & Poor's 500-stock index gained 7.32 points, or 0.57%, to 1285.50 Tuesday.

Shares of financial companies, the index's biggest percentage decliner over the past month, led the advance, while telecommunications and consumer-staples stocks lagged. The Nasdaq Composite Index rose 18.10 points, or 0.66%, to 2778.11.

The U.S. non-manufacturing sector's expansion picked up steam in May, bucking economists' expectation for it to slow, according to the Institute for Supply Management. But the group's reading on employment declined and price pressures contracted.

Financial chiefs from the Group of Seven leading nations pressed Europe during a teleconference to act more aggressively to tame its escalating debt crisis.

The officials expect euro-zone leaders to bolster their banking system in the coming weeks, The Wall Street Journal reported.

Spain's budget minister said earlier the government had effectively lost access to capital markets. In corporate news, Starbucks fell 2.8% after the coffee company said it would acquire Bay Bread and its La Boulange Bakery for $100 million in cash to expand its food offerings.

Facebook fell 3.8% after hitting an intraday low of $25.88, the eighth loss in the 11 sessions since the social-media company went public at $38. Sandisk rose 5.5% after Pacific Crest analysts gave the computer-memory maker's shares an outperform rating, saying the stock stands to benefit from the rapid adoption of solid state drives.

EUROPEAN STOCK MARKETS

European stocks broke a four-session losing streak Tuesday, ending higher after a gauge of activity in the U.S. services sector rose slightly in May and investors got ready for a European Central Bank meeting.

Meanwhile, Germany again underperformed the wider market and stocks in Greece sank. The Stoxx Europe 600 index rose 0.3% to close at 234.59.

Oil stocks provided the biggest lift for Europe's main equities index, with Total SA trading up 1.1% in Paris and Royal Dutch Shell PLC adding 0.5% in Amsterdam.

Group of Seven officials and central bankers agreed to closely monitor developments in Europe during a conference call earlier Tuesday, the U.S. Treasury said in a statement.

Looking ahead to Wednesday, economists said the European Central Bank is likely to hold its fire but couldn't entirely rule out a move amid weakening economic indicators and escalating worries over the euro-zone debt crisis.

Greece returned to sharp losses after markets there closed for a Monday holiday. The Athens General Index sank 5.1% to 476.36, with shares of National Bank of Greece SA dropping 8.5% and Coca-Cola Hellenic Bottling Co. SA down 6.7%.

Late Monday, Standard & Poor's Ratings Services said it sees a one-in-three chance Greece will exit the euro zone in the coming months, on the heels of June 17 elections.

In Spain, investors weighed comments by Treasury Minister Cristobal Montoro. He said in a radio interview Tuesday that high current borrowing costs had effectively shut the market door to Spain. The sovereign auctions longer-term debt Thursday.

Spanish stocks made gains, however, with the IBEX 35 index up 0.5% at 6,267.80. Shares of BBVA SA rose 0.7%, while Banco Santander SA added 1.2%.

The French CAC 40 index rose 1.1% to 2,986.10, lifted in part by Total. Societe Generale SA surged 4%, while BNP Paribas SA rose 2.4%. The German DAX 30 index again trailed the rest of the market, slipping 0.2% to 5,969.40. Utilities E.On AG and RWE AG fell 1.2% and 1.4%, respectively.

London markets remained closed for the second of a two-day holiday to celebrate Queen Elizabeth II's Diamond Jubilee.

ASIA-PACIFIC STOCK MARKETS

Asian markets bounced back Tuesday as investors looked ahead to a group of G-7 finance ministers and central bankers teleconference about Europe, while an interest-rate cut in Australia pushed up the local market by the most since January.

Japan's Nikkei closed at 8382.00, a 1% rise, while Hong Kong's Hang Seng Index gained 0.4% to 18259.03.

outh Korea's Kospi was up 1.1% at 1801.85 and the China Shanghai Composite nudged up 0.2% to 2311.92.

In China, heavyweight power plants rose sharply in anticipation of increased demand for electricity in the summer months. Huaneng Power surged 6.9%, Huadian Power ended 4.6% higher and Datang Power added 4.0%.

Tsingtao Brewery was also among the day's best performers following a Nikkei report that it will form a 50/50 joint venture with Suntory Holdings.

The Chinese beer maker ended up 1.5%. Brokerages were among those suffering the largest declines, due to concerns the sluggish stock market will hurt trading interest. Southwest Securities fell 3.8% and Industrial Securities dropped 3.2%.

Most Hong Kong blue chips rebounded after the recent selloff. Wharf rose 1.5%, spurred by news it has accepted the Hong Kong government's terms for a 21-year lease renewal of Ocean Terminal, while Hong Kong Exchanges rebounded 2.4% after falling 4.8% Monday on concerns of a higher bid for the London Metal Exchange.

The best-performing blue chip however was Sands China, which rallied 3.6%.

Technology companies led the rise in Japan, aided by a pause in the recent strength of the yen. Advantest gained 5.8% and TDK added 4.4%. Overall market-friendly sentiment also sent growth-sensitive stocks higher.

Real estate player Mitsui Fudosan advanced 3.6% and trading firm Mitsubishi Corp gained 2.5%. Construction machinery maker Komatsu ended up 2.8%, while insurer Tokio Marine Holdings rose 4.9%.

COMMODITIES

With U.K. markets closed Tuesday for a public holiday, crude futures settled slightly higher Tuesday as traders reacted to improving U.S. services-sector data and factored in an expected drop in oil inventories, while remaining cautious on the European debt crisis.

Light, sweet crude for July delivery settled at $84.29 a barrel, up 31 cents. Brent crude on the ICE Futures exchange traded six cents lower at $98.78 a barrel.

Gold futures edged higher, settling just short of Friday's three-week high on hopes the recent slump in prices and the potential for more easy-money policies from central banks would increase demand for the precious metal.

The most actively traded contract, for August delivery, rose $3, or 0.2%, to settle at $1,616.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold for June delivery also gained $3, or 0.2%, to settle at $1,165.20.