UNITED STATES

The U.S. Supreme Court said on Tuesday that it would hear an appeal by Merck & Co Inc of a ruling that reinstated a securities fraud lawsuit involving the company's disclosures to investors about its withdrawn Vioxx pain drug.

U.S. stocks rose on Tuesday after data from an industry group showed that consumer confidence rose in May, boosting optimism that the recession may be abating, and a broker upgrade of Apple Inc lifted technology stocks.

U.S. consumer confidence soared in May to its highest level in eight months, suggesting underlying improvement in the economy after a grim first quarter that witnessed a record plunge in home prices.

The World Health Organization said on Tuesday that nearly 13,000 people have been confirmed infected with the new H1N1 flu strain but the number of countries affected is stable at 46.

Ties between the United States and China could be transformed by cooperation on climate change, House of Representatives Speaker Nancy Pelosi said, linking environmental concerns to human rights and the rule of law.

General Motors Corp faces a number of major deadlines and events on Tuesday that will go a long way toward determining how and when the company files for an expected bankruptcy later this week.

Prices of U.S. homes in March fell a sharp 18.7 percent from a year earlier, though some relief appeared to be in sight as, for the second month, prices did not slide at a record rate as they had been doing since late 2007.

The U.S. Supreme Court said on Tuesday that it would hear an appeal by Merck & Co Inc of a ruling that reinstated a securities fraud lawsuit involving the company's disclosures to investors about its withdrawn Vioxx pain drug.

North Korea, irked by South Korean and Japanese criticism of its nuclear test, said on Tuesday it may not support moves to curb production of nuclear bomb-making material, jeopardizing the start of global talks on the issue.

North Korea, defiant in the face of international condemnation of its latest nuclear test, fired two more short-range missiles off its east coast on Tuesday and accused the United States of plotting against its government.

Bank of Montreal posted a 44 percent drop in quarterly profit on Tuesday, but the results came in stronger than expected as provisions for bad loans were not as high as analysts had forecast.

Netbook PC pioneer Asustek aims to double its market share to become the world's No.3 laptop vendor, riding the rising popularity of low-cost laptops among budget-conscious consumers during the global downturn.

Palestinian President Mahmoud Abbas will urge U.S. President Barack Obama at their first White House talks to press Israel to halt expansion of Jewish settlements, Palestinian officials said on Tuesday.

Mexico's peso reversed losses to firm on Tuesday and stocks jumped after U.S. consumer confidence soared in May to its highest level in eight months, boding well for Mexico's exports.

A U.S. air strike in western Afghanistan early this month was a disproportionate use of force that killed 97 civilians and no more than two Taliban fighters, an Afghan rights watchdog said in a report on Tuesday.

The U.S. economy appears destined for several years of weak growth and high unemployment that leave it vulnerable to a recession relapse after the massive dose of government stimulus wears off.

U.S. pharmaceutical giant Pfizer is set to raise $10.6 billion through the sale of a four-part bond, IFR reported on Tuesday, that will help finance its purchase of Wyeth.

As General Motors Corp creeps toward bankruptcy, Japanese auto executives have grown less worried about the turmoil in the supply chain and dealer channels the demise of the No. 1 U.S. car maker would cause.

Oil pared losses on Tuesday to trade above $61 a barrel, after Saudi Arabia said oil demand was picking up and in response to positive U.S. consumer confidence data.

Recent share placements by renewable energy companies suggest the industry has passed through a financial bottleneck, but investor appetite for further stock sales could vanish as quickly as it surfaced.