April 2 (Bloomberg) -- The U.S. stock market posted its best start to a second quarter in 70 years after Lehman Brothers Holdings Inc. and UBS AG said they are raising $19 billion to replenish capital, spurring speculation that banks can weather further credit losses. Gold plunged below $900 an ounce for the first time in six weeks as investors shifted money to equities on signs banks are rebounding from U.S. subprime-mortgage losses.

TOP STORIES/MOST READ ON BLOOMBERG

UBS Says Ospel Resigns After Writedowns Lead to Loss

UBS AG, battered by the biggest writedowns from the collapse of the U.S. subprime mortgage market, reported a 12 billion-franc ($11.9 billion) first-quarter loss and said Chairman Marcel Ospel will step down.

Banks Face Biggest Crisis in 30 Years, Report Shows

Credit market turmoil poses the most severe crisis for banks in 30 years, surpassing Black Monday in 1987, the Asia currency crisis and the bursting of the dot-com bubble, Morgan Stanley and Oliver Wyman said in a joint report.

Leveraged Loans Fall by Record as Bank Losses Deepen

High-yield loan prices tumbled the most in at least 11 years in the first quarter as investors fled all but the safest U.S. government assets.

Lehman Sells $4 Billion Shares to Help Calm Investors

Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, raised $4 billion from a stock sale to quell speculation it's short of capital as financial firms prepare for more writedowns of mortgage assets. The company rose as much as 11 percent in New York trading.

MAIN ECONOMIC RELEASES TODAY Figures are based on Bloomberg surveys of economists:

Asian Development Bank's Report on Region's Economic Outlook Singapore's Manufacturing Index Seen Falling to 50 for March

MAIN ANALYST UPGRADES/DOWNGRADES *SINGAPORE EXCHANGE CUT TO `HOLD' FROM `BUY' AT DBS *SHARP CUT TO `NEUTRAL' FROM `BUY' AT GOLDMAN *CHIYODA CORP CUT TO `NEUTRAL' AT UBS *KYOCERA CUT TO `SELL' FROM `NEUTRAL' AT GOLDMAN *DONGFANG ELECTRIC CUT TO `SELL' FROM `BUY' AT CITI *EISAI CUT TO `NEUTRAL' FROM `BUY' AT UBS *TDK CUT TO `NEUTRAL' FROM `BUY' AT GOLDMAN *TRAVELSKY TECHNOLOGY CUT TO `SELL' FROM `HOLD' AT CITI

ASIAN MARKETS

The Nikkei 225 futures contract due in June rose 185 points to 12,860. The Hang Seng Index futures for April gained 600 to 23,230. The S&P/ASX 200 Index futures due in June advanced 176 to 5,585 at 6:59 a.m. in Sydney.

U.S. Stocks Rise in S&P 500's Best 2nd Quarter Start Since 1938

The U.S. stock market posted its best start to a second quarter in 70 years after Lehman Brothers Holdings Inc. and UBS AG said they are raising $19 billion to replenish capital, spurring speculation that banks can weather further credit losses.

Treasuries Decline Most in a Week as UBS, Lehman Boost Capital

Treasuries fell the most in more than a week as UBS AG and Lehman Brothers Holdings Inc. said they will raise capital, spurring a global stock market advance and curbing demand for the safety of U.S. government securities.

Dollar Rises Most Versus Euro in Almost 2 Weeks on UBS, Lehman

The dollar rose the most against the euro in almost two weeks as UBS AG and Lehman Brothers Holdings Inc. said they're raising $19 billion, bolstering investor confidence in the world's largest financial institutions.

European Stocks Climb; UBS, Credit Suisse and Infineon Gain

European stocks rose to the highest since February after UBS AG said it will replenish its capital by raising $15 billion and investors speculated higher prices will lift profits for chipmakers.

European Government Bonds Fall as Stock Gains Sap Debt Demand

European government bonds fell as gains in stocks around the world curbed appetite for the safest securities and after a central bank official signaled a cut in interest rates isn't likely.

Oil Falls a Third Day on Forecasts of a U.S. Supply Increase

Crude oil fell for a third day on forecasts that U.S. stockpiles increased for the 11th time in 12 weeks as fuel consumption dropped.

Gold Futures Tumble Below $900 as Investors Shift to Equities

Gold plunged below $900 an ounce for the first time in six weeks as investors shifted money to equities on signs banks are rebounding from U.S. subprime-mortgage losses.

HIGHLIGHTS FROM NEWSPAPERS

Toyota Raising Stake in Fuji Heavy Industries, Nikkei Reports

Toyota Motor Corp. is raising its stake in Subaru vehicle maker Fuji Heavy Industries Ltd. to about 17 percent from 8.7 percent by buying 64.25 million shares in the company, Nikkei English News reported, without citing anyone.

Last Updated: April 1, 2008 17:07 EDT