Sept. 8 (Bloomberg) -- Most European stocks advanced, Asian shares rallied and U.S. index futures rose as commodity producers climbed with metal prices and investors speculated that mergers will increase. BHP Billiton Ltd., the world’s biggest mining company, surged 1.8 percent as copper gained in London. Cadbury Plc added 1.8 percent on speculation the maker of Dairy Milk chocolates may attract competing offers after rejecting Kraft Food Inc.’s bid yesterday. Kingfisher Plc surged 3.9 percent after first- half profit climbed. Europe’s Dow Jones Stoxx 600 Index, added 0.3 percent to 237.91 at 8:35 a.m. in London as two stocks rose for each one that declined. A six-month, 51 percent rally has pushed the regional gauge’s valuation to 44.8 times profit, near the highest level since September 2003, according to weekly data compiled by Bloomberg. “The market has decided now that the recovery is around the corner, unemployment is not a problem, housing is not a problem, and we’re going to live happily ever after,” Andy Brough, a London-based fund manager who oversees $1.8 billion at Schroder Investment Management, told Bloomberg Television. “A lot of companies have produced reasonable numbers, like Kingfisher today, and you get a feeling that actually companies have performed pretty well.” The MSCI Asia Pacific Index climbed 1.2 percent as Australian business confidence jumped to the highest level in almost six years. Futures on the Standard & Poor’s 500 Index rose 0.9 percent, indicating the gauge may advance after U.S. markets were closed for the Labor Day holiday yesterday. ‘Best Phase’ Credit Suisse Group AG strategists said investors should favor stocks over bonds and cash and forecast gains in equity indexes worldwide ranging from 12 percent for Europe and 23 percent for Japan through mid-2010 as the economy recovers. “This is the best phase of the economic cycle,” a team of strategists led by Andrew Garthwaite in London wrote today. “We do not exclude a period of near-term consolidation, given that some of our tactical indicators are sending a signal of caution. Yet, other indicators suggest it is too early to sell.” BHP Billiton rose 1.8 percent to 1,652.5 pence in London and Rio Tinto Group, the third-largest mining company, gained 1.9 percent to 2,511 pence. Copper, nickel, zinc and tin advanced on the London Metal Exchange. Newcrest Mining Ltd., Australia’s largest gold-mining company, surged 3.7 percent to A$33.75. Gold futures climbed to more than $1,000 an ounce in New York for the first time in more than six months as a weaker dollar and concern that inflation may accelerate boosted the precious metal’s appeal. Cadbury Cadbury, which soared 38 percent yesterday, increased 1.8 percent to 797 pence. The confectioner may attract suitors ranging from Nestle SA to Hershey Co. and sell for as much as $21 billion according to analysts. Credit Suisse upgraded Cadbury shares to “neutral” from “underperform” and lifted its price estimate to 800 pence from 575 pence. Kingfisher gained 3.9 percent to 225.5 pence. Europe’s largest home-improvement retailer said first-half pretax profit climbed to 285 million pounds ($467 million) to 290 million pounds. The company made 214 million pounds on that basis a year earlier. STMicroelectronics NV, Europe’s largest semiconductor maker, advanced 2.6 percent to 6.57 euros while Elpida Memory Inc., Japan’s biggest maker of dynamic random access memory, gained 5.4 percent to 1,225 yen. Prices of the benchmark 1-gigabit computer-memory chip climbed to $1.71 yesterday, from as low as 58 cents in December, according to Dramexchange Technology Inc., operator of Asia’s biggest spot market for the chips. Dassault Systemes SA rallied 4.9 percent to 37.38 euros. Deutsche Bank AG raised its recommendation on the company, whose design software is used by Toyota Motor Corp. and Boeing Co., to “buy” from “hold.”

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