The three major U.S. stock indexes had fallen more than 1 percent before rallying in the last hour of trading, led by bank shares. The US Treasury is preparing to announce today it will let 10 banks buy back government shares, people familiar with the matter said, signaling confidence some of the largest U.S. lenders won’t again need a taxpayer rescue. JPMorgan Chase & Co. may be among those cleared to repay Troubled Asset Relief Program funds. The approvals may relieve investor concerns about government ownership after a popular outcry against bailouts for Wall Street.

Most Asian stocks fell as concern a three?month rally had overvalued earnings prospects. There are concerns the market has risen too fast and will have a big drop, so investors don’t want to hold any stocks for a long time Crude oil gained in New York, snapping two days of losses, as most Asian stocks rose after Nobel Prize?winning economist Paul Krugman said the U.S. recession may end this year, signaling increased energy demand.

Oil, which has closed above $60 a barrel each session since May 20, also rose as the dollar declined, boosting the appeal of commodities as a hedge against a weaker U.S. currency.

Crude?oil prices may average $65 a barrel by the end of 2009 as the global economy begins to rebound, Lawrence Eagles, global head of commodities research at JPMorgan Chase & Co., said yesterday at the Asian Oil & Gas Conference in Kuala Lumpur.

The Indian market which has run up on expectation of aggressive reform by new government will like to see policy action by government. If that doesn’t happen as per expectation, the market will correct. Few statements by alliance has created similar some uncertainty for implementation of reform and resulted into yesterday correction. Anyhow market was overdue for correction. We feel any deep correction today should be used to by the stocks with 2?3 days view.