Mar. 11--KUWAIT'S FOREIGN ASSETS RISE: The Central Bank of Kuwait's net foreign assets rose by KD289m and helped push money supply up 3.8 percent month-on-month in January, thanks to government inflows. The money came from overseas assets being put back into the Kuwaiti banking system, as part of the government's move to shore up liquidity. National Bank of Kuwait reports that loans to residents rose 1.1 percent, while business loans were up 5 percent. It also noted that year on year credit growth hit an 'unsustainable' high of 37.3 percent in January 2008, forcing the central bank to limit credit growth. While growth slowed through the year, a move towards short term foreign funds in the final quarter stopped local companies having access to financing.

SAUDI INFLATION FALLS TO 6.9 PERCENT IN FEBRUARY: New figures show that Saudi Arabia's annual inflation fell to 6.9 percent in February from 7.9 percent in January, according to the kingdom's Central Department of Statistics. Saudi Arabia's cost of living index rose to 120.6 points on Feb. 28 compared with 112.8 points a year earlier, the authority said.

DOW RALLY BOOSTS ASIA STOCKS: A bull run on Wall Street yesterday has boosted Asian markets today. Tokyo's Nikkei average was up 4 percent at the midday break and the All Ordinaries index in Australia gained 2.1 percent. In Seoul, the KOSPI picked up 2.8 percent, while Hong Kong's Hang Seng index was showing a 3.6 percent gain. Wall Street stocks rallied Tuesday, with all three major indexes posting their biggest gains of the year after Citigroup said it operated at a profit for the first two months of the year. The Dow Jones industrial average gained 379 points, or 5.8 percent. It was the Dow's biggest one-day point and percentage gain since November 24, 2008.

DUBAI IS COSTLIEST CITY IN GULF: Dubai is now the most expensive city in the Gulf, according to a new report by the Economist Intelligence Unit. Dubai rose 26 places, to No 53 of 132 cities around the world, as a result of the strength of the dirham, which is pegged to the US dollar. Abu Dhabi rose 15 places from last year to No 80.

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