IBT Staff Reporter

Tokyo shares closed lower Wednesday as weakness in commodity-sector shares and a selloff of real estate stocks stalled a two-day rally, despite continued strength in financial stocks and gains at Matsushita Electric Industrial.

U.S. stocks rose on Wednesday as investors awaited the Federal Reserve's decision on interest rates and its assessment of the state of the economy, while consumer-products giant Proctor & Gamble Co. and automaker General Motors Corp. reported better-than-anticipated results.

Citigroup said it sold $4.5 billion of common stock on Wednesday, more than it expected to sell, citing strong investor demand as it seeks to stabilize its finances.

United Online Inc, an internet service provider and parent of Classmates.com , announced plans on Wednesday to acquire FTD Group Inc, a provider of floral services and products, for about $800 million.

Jeffrey Bewkes, the chief executive of Time Warner Inc., announced plans on Wednesday to downsize what has for years been the world's largest media company by separating the cable-systems unit from the film and television businesses.

General Motors Corp., the world's biggest automaker, reported a net loss of $3.25 billion in the first quarter as its North American division continues to struggle. The results beat Wall Street expectations of a bigger loss, sending the company's stock up more than 8 percent in early trading.

China's A-share total net profit in 2007 reached 949.7 billion Yuan (135.7 US dollar), 49.86 percent higher than the prior year; the average earnings per share reached 0.42 Yuan, up 49.71 percent, according to the report of China Securities News Press on Tuesday.

Over 222 small and medium-sized public companies listed in China's Shenzhen Stock Exchange gained an average operating income by 308 million Yuan (44 US dollar) in the first quarter, up 35.32 percent than the same period of last year, Xinhua news agency reported on April 30.

Hong Kong's Hang Seng Index (HSI) Wednesday opened slightly higher by 84.12 points, or 0.32 percent, to reach 25998.27. The financial shares led the rise, such as the local banking stocks and Chinese-funded insurance stocks.

China should continue to prevent inflation and overheating of economic development in the second quarter, especially to control rising prices and curb inflation, the State Development and Reform Commission (SDRC) said Tuesday.

China's Hua Xia Bank, a business bank listed in Shanghai Stock Exchange in 2003, posted first quarter net profit of 822 million Yuan(117.4 million US dollars), 80.43 percent higher than the same period last year.

Dollar recovered against the euro with markets awaiting the interest rate decision from Federal Reserve on Wednesday.

Sterling fell sharply against the dollar yesterday as downbeat Consumer Confidence data further dampened the sentiments of investors.

The dollar held on to slight gains against the euro on Wednesday as investors expect the Federal Reserve will pause its current string of interest rate cuts after one more quarter point decline today.

MasterCard's profit more than doubled in the first quarter as more customers outside the United States used their credit and debit cards for purchases.

South African Nationwide Airline has ceased operations until further notice due to financial hardships, the airline announced on Tuesday.

The Zimbabwe Police have released detained MDC members of the opposition party following pressure from lawyers for Zimbabwe's MDC party and a court ruling issued by the Harare High Court.

3Com Corp. on Tuesday named a new CEO who will be based in China, after it unsuccessfully sought to win a U.S. government approval to sell a minority stake to China's biggest telecom gear maker Huawei Technologies Co Ltd.

United Rentals Inc. said late Tuesday that its first-quarter profit rose to $38 million, or 34 cents a share, from $30 million, or 28 cents a share, in the year-ago period.

Countrywide Financial Corp, the biggest U.S. mortgage lender by value of loans, reported an $893 million loss for the first quarter on missed mortgage payments, rising home foreclosures and writedowns.

Genentech Inc. and Biogen Idec Inc. shares slumped on Tuesday as the companies said their drug Rituxan failed a late stage trial to examine the efficiency of the drug in patients with lupus.

In a regulatory filing released Friday, the chief executive of Continental Airlines received $6 million in compensation from the company last year, down 9.3 percent from 2006.

Citigroup, the largest U.S. Bank, is looking to raise an additional $3 billion in capital as it seeks to stabilize its finances, announcing on Monday that it is offering more stock to investors.

Boston Properties Inc. a real estate developer and owner of office properties reported late Tuesday a steep decline of 90 percent in net income for the first quarter.

Avon Products Inc., the largest door direct seller of cosmetics, said Tuesday its net income rose 23 percent helped by stronger sales in Brazil, Russia and China.

DreamWorks Animation SKG Inc. posted a better than forecasted net income in the first quarter that rose 69 percent, supported by DVD sales of Shrek the Third and Bee Movie.

Soybeans tumbled for the fifth consecutive session on concerns of reduced demand as the dollar regains.

Wheat declined on Tuesday after a U.S. government report showed that winter crop conditions improved reducing concern that global inventories will decline.

Royal Dutch Shell and BP Plc, the two largest public oil companies in Europe, reported record profits on Tuesday for the first three months of the year as oil prices reached new highs.