Asian shares gain on global recovery outlook, eyes Fed

TOKYO (Reuters) - Asian shares rose to their highest level in nearly 18 months on Wednesday as strong U.S. data further boosted investor confidence in global economic outlook, ahead of the U.S. Federal Reserve's monetary policy decision due later in the session.

Optimism over economic recovery on strong U.S. housing market and China's economic growth forecast for 2013 raised expectations for stronger demand for fuel and industrial commodities, underpinning oil prices and lifting copper.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.6 percent, building on the previous day's 1 percent rally which snapped a four-day losing streak. Gains were led by a 1 percent rise in the energy sector <.miapjen00pus>.

London copper added 0.6 percent to $8,153.25 a tonne while U.S. crude oil held steady around $97.58 a barrel after rising more than 1 percent on Tuesday on expectations of higher demand. Brent also was steady around $114.35.

"Sentiment has changed this year, with signs of stabilization in the euro zone, a U.S. economic recovery and a shift to a new Chinese political regime removing obstacles which had stood in the way of investors taking risks last year," said Xiao Minjie, an independent economist based in Tokyo.

"Domestic demand holds key this year. Beijing's drive to urbanise inner China will boost infrastructure spending while Southeast Asia will also likely see expansion in domestic demand accelerating," he said.

Global stock markets rose on Tuesday as earnings from U.S. companies have generally beaten forecasts so far, with the latest upbeat results from Amazon boosting the company's stock 10 percent, while European equities scaled fresh two-year highs.

Commodity-reliant Australian shares <.axjo> inched up 0.2 percent after hitting a fresh 21-month high as top miners climbed on firmer copper prices.

"Shares are probably the most attractive asset," said Shane Oliver, head of investment strategy at AMP Capital. "Despite the rebound over the last year, Australian shares are offering relatively attractive starting-point dividend yields."

Hong Kong shares <.hsi> jumped 1 percent and Shanghai shares <.ssec> rose 0.3 percent.

Japan's Nikkei stock average <.n225> advanced 1.1 percent. <.t/>

FED STATEMENT EYED

The Fed ends a two-day policy meeting on Wednesday, and few market watchers expect any near-term shift in its current, very accommodative stance.

But investors will focus on the statement for any clues to the Fed's thinking on if and when it might pull back from its aggressive easing stimulus. The minutes from the December meeting, released earlier this month, hinted at uneasiness within the Fed around its asset-buying program and sparked a sell-off in Treasuries and lifted yields up out of ranges.

"We see a prospect for sustained asset-price reflation in coming months, the result of G3 stimulus efforts and structural reallocation flows," said Morgan Stanley said in a research note.

"This has three implications: Reflation would lend support to higher-yielding emerging markets assets, safe-haven assets would continue to weaken, and expectations about emerging markets policy would likely shift."

The yen remained under pressure with the Bank of Japan set to pursue strong monetary easing as the Abe administration pushes for radical reflationary policies to end stubborn deflation.

The dollar rose 0.3 percent to 90.98 yen, near Monday's 91.32, its highest level since June 2010. The euro also gained 0.3 percent to 122.78 yen, not far from 122.91 also touched on Monday, its highest point since April.

The prospect of continued weakness in the yen and rising risk appetite lifted the Australian to four-year highs on the yen on Wednesday, while New Zealand dollars hovered near its highest against the yen in four years.

Aussie rose as high as 95.29 yen while Kiwi rose as high 76.26 yen, close to 76.37 set Friday, its strongest since 2008.

The euro traded at $1.3493, after scaling a 14-month high of $1.3498 on Tuesday.

Spot gold was nearly flat at $1,664.11 an ounce, above the key 200-day moving average at $1,662.92.

(Additional reporting by Miranda Maxwell in Melbourne; Editing by Eric Meijer & Kim Coghill)

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Hiroshi Nakajima, Leader of World Health Organization, Dies at 84

Dr. Hiroshi Nakajima, a Japanese physician who as leader of the World Health Organization started campaigns to fight malaria and other infectious diseases but whose tenure, from 1988 to 1998, was marred by repeated accusations of mismanagement, died on Saturday in Poitiers, France. He was 84.

He died after a short illness, the organization said.

Besides his efforts to fight infectious diseases, including AIDS, tuberculosis and dengue fever, Dr. Nakajima enlarged the organization’s focus on preventive medicine and vaccinations for children, and tried to rally international support to end ritual female genital mutilation. In a statement on Monday, Dr. Margaret Chan, the current W.H.O. director general, praised his efforts to defeat polio.

But he came under frequent criticism. The United States and other Western nations twice opposed his election as director general of the agency, which is part of the United Nations. They argued that he had not infused the agency with a clear sense of direction and had let its budget and bureaucracy balloon.

In 1992, when Washington was fighting Dr. Nakajima’s re-election, Louis W. Sullivan, the secretary of health and human services, wrote, “It appears that W.H.O. is losing its reputation as the world’s leader in health matters at a time when serious global health problems present daunting challenges to us all.”

Dr. Nakajima was again cast in a harsh light when Dr. Jonathan Mann, the widely respected commander of the United Nations’s fight against AIDS, resigned in 1990. In an interview with The New York Times, Dr. Mann said he resigned over “issues of principle” and “major disagreements” with Dr. Nakajima, who wanted to de-emphasize AIDS prevention and put more effort into other diseases, like malaria.

Dr. June Osborn, chairwoman of the National Commission on AIDS, called the resignation of Dr. Mann, who died in 1998, “a world tragedy.”

In the 1992 director general election, the United States accused Japan of overly aggressive tactics in promoting Dr. Nakajima’s candidacy. The State Department said Japan had threatened to cut off fish imports from the Maldives and coffee imports from Jamaica if those countries did not support Dr. Nakajima. A spokesman for Japan’s Foreign Ministry denied the accusations.

There were also allegations that Japan had awarded research contracts to 23 of the 31 W.H.O executive board members who recommended Dr. Nakajima’s re-election. A W.H.O. audit found that the contracts — the largest of which was $150,000 — were technically legal but presented “a problem of ethics,” in the words of the board chairman, Jean-François Girard of France.

Dr. Nakajima defeated Dr. Mohammed Abdelmoumene of Algeria, who had been his deputy, in a 93-58 vote. It was the first time in the organization’s history that an incumbent director had been challenged by another W.H.O. official.

In 1997, Dr. Nakajima announced that he would not seek a third term, in part because he had lost support from African nations after he had explained the relative scarcity of Africans in executive positions at the agency by suggesting that Africans had difficulty conceptualizing and writing reports.

The Economist magazine said the remark “was particularly odd coming from Dr. Nakajima, who has himself been accused of quasi-incomprehensibility, even when he speaks Japanese.”

Dr. Nakajima was born in Chiba-shi, Japan, on May 16, 1928. He graduated from Tokyo Medical University in 1955, representing the 10th generation of his family to produce a doctor. After studying psychiatry and pharmacology at the University of Paris, he returned to Tokyo Medical University to earn a Ph.D. in medical sciences. He then became research director for Nippon Roche, the Japanese subsidiary of Hoffmann-LaRoche.

Dr. Nakajima joined the W.H.O. in 1974, and worked to improve getting medical supplies to the third world. He helped develop the concept of “essential medicines,” drugs that satisfy the health care needs of most of a population. In 1979, the Western Pacific nations elected him regional director, and he served two terms.

Dr. Nakajima is survived by his wife, the former Martha Ann DeWitt, and two sons.

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His cat, his lunch and a high five: Harper’s day chronicled on Twitter

OTTAWA – One of the cardinal rules of social media: no one cares what you had for lunch. Unless, perhaps, you’re the prime minister.

The people behind Stephen Harper‘s Twitter account are using the first day of Parliament’s winter sitting to provide an intimate look at how the prime minister spends his day.

The posts include a video of Harper’s ride to work, photos of breakfast with his cat Stanley and a lunch that included fruit and a Diet Coke at his desk.

The behind-the-scenes look is the latest move by Harper’s team to bolster his presence on social media platforms.

Digital public affairs analyst Mark Blevis says it’s likely an effort to rebrand Harper in the lead-up to the next election, where he’ll face off against politicians far more adept online.

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Soldier who lost 4 limbs has double-arm transplant

On Facebook, he describes himself as a "wounded warrior...very wounded."

Brendan Marrocco was the first soldier to survive losing all four limbs in the Iraq War, and doctors revealed Monday that he's received a double-arm transplant.

Those new arms "already move a little," he tweeted a month after the operation.

Marrocco, a 26-year-old New Yorker, was injured by a roadside bomb in 2009. He had the transplant Dec. 18 at Johns Hopkins Hospital in Baltimore, his father said Monday.

Alex Marrocco said his son does not want to talk with reporters until a news conference Tuesday at the hospital, but the younger Marrocco has repeatedly mentioned the transplant on Twitter and posted photos.

"Ohh yeah today has been one month since my surgery and they already move a little," Brendan Marrocco tweeted Jan. 18.

Responding to a tweet from NASCAR driver Brad Keselowski, he wrote: "dude I can't tell you how exciting this is for me. I feel like I finally get to start over."

The infantryman also received bone marrow from the same dead donor who supplied his new arms. That novel approach is aimed at helping his body accept the new limbs with minimal medication to prevent rejection.

The military sponsors operations like these to help wounded troops. About 300 have lost arms or hands in Iraq or Afghanistan.

Unlike a life-saving heart or liver transplant, limb transplants are aimed at improving quality of life, not extending it. Quality of life is a key concern for people missing arms and hands — prosthetics for those limbs are not as advanced as those for feet and legs.

"He was the first quad amputee to survive," and there have been four others since then, Alex Marrocco said.

The Marroccos want to thank the donor's family for "making a selfless decision ... making a difference in Brendan's life," the father said.

Brendan Marrocco has been in public many times. During a July 4 visit last year to the Sept. 11 Memorial with other disabled soldiers, he said he had no regrets about his military service.

"I wouldn't change it in any way. ... I feel great. I'm still the same person," he said.

The 13-hour operation was led by Dr. W.P. Andrew Lee, plastic surgery chief at Johns Hopkins. It was the seventh double-hand or double-arm transplant done in the United States.

Lee led three of those earlier operations when he worked at the University of Pittsburgh, including the only above-elbow transplant that had been done at the time, in 2010.

Marrocco's "was the most complicated one" so far, Lee said in an interview Monday. It will take more than a year to know how fully Marrocco will be able to use the new arms.

"The maximum speed is an inch a month for nerve regeneration," he explained. "We're easily looking at a couple years" until the full extent of recovery is known.

While at Pittsburgh, Lee pioneered the immune-suppression approach used for Marrocco. The surgeon led hand-transplant operations on five patients, giving them marrow from their donors in addition to the new limbs. All five recipients have done well, and four have been able to take just one anti-rejection drug instead of combination treatments most transplant patients receive.

Minimizing anti-rejection drugs is important because they have side effects and raise the risk of cancer over the long term. Those risks have limited the willingness of surgeons and patients to do more hand, arm and even face transplants.

Lee has received funding for his work from AFIRM, the Armed Forces Institute of Regenerative Medicine, a cooperative research network of top hospitals and universities around the country that the government formed about five years ago. With government money, he and several other plastic surgeons around the country are preparing to do more face transplants, possibly using the new immune-suppression approach.

Marrocco expects to spend three to four months at Hopkins, then return to a military hospital to continue physical therapy, his father said. Before the operation, he had been fitted with prosthetic legs and had learned to walk on his own.

He had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."

The home was heavily damaged by Superstorm Sandy last fall.

Despite being in a lot of pain for some time after the operation, Marrocco showed a sense of humor, his father said. He had a hoarse voice from the tube that was in his throat during the long surgery and decided he sounded like Al Pacino. He soon started doing movie lines.

"He was making the nurses laugh," Alex Marrocco said.

___

Associated Press Writer Stephanie Nano in New York contributed to this report.

___

Online:

Army regenerative medicine:

http://www.afirm.mil/index.cfm?pageid=home

and http://www.afirm.mil/assets/documents/annual_report_2011.pdf

___

Follow Marilynn Marchione at http://twitter.com/MMarchioneAP .

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Asian shares rise, cautious before Fed, U.S. data

TOKYO (Reuters) - Asian shares rose on Tuesday as recent selling drew bargain hunters, but investors were cautious ahead of more U.S. economic reports and a Federal Reserve policy decision later in the week that may offer clues to the Fed's stimulus plans.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> advanced 0.7 percent to snap a four-day losing streak, led by a 1.1 percent jump in Australian shares <.axjo> to a fresh 21-month high on gains in financials shares.

South Korean shares <.ks11>, which slumped to an 8-week low on Monday, rebounded 0.8 percent.

Japan's Nikkei stock average <.n225> reversed earlier declines and rose 0.6 percent, buoyed by optimism over earnings of major banks. It briefly touched a fresh 32-month high above 11,000 on Monday. <.t/>

The benchmark Standard & Poor's 500 Index <.spx> eased slightly on Monday after an eight-day winning run but held above 1,500 points, after closing above that level on Friday for the first time in more than five years.

Risk appetite has been improving overall with U.S. earnings generally solid. A rise in a gauge of planned U.S. business spending in December added to a recent run of positive global economic data, along with signs of easing financial stress in the euro zone. Euro zone blue chips touched fresh 18-month peaks on Monday.

More solid U.S. growth indicators would, however, fuel speculation the Fed may consider pulling back on aggressive easing stimulus. The Fed ends a two-day policy meeting on Wednesday. The first estimate of U.S. fourth-quarter gross domestic product also will be released on Wednesday, followed by non-farm payrolls on Friday.

"Ahead of key events, markets are likely to stay in ranges. But with yields on U.S. Treasury and German government bonds inching higher, one might say investors may be shifting funds to riskier assets from safe-havens," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.

"That's part of the reason why the euro has stayed firm," he said.

Saito said while a rise in U.S. yields underpins the dollar against the yen, they were likely to be capped with end-month selling from exporters and options lined up between 90.50 and 91.50 yen.

The benchmark U.S. 10-year note yield briefly pierced 2 percent on Monday for the first time since last April, and inched up 1 basis point (bps) in Asia from New York close. The 10-year Japanese government bond yield also rose.

Naka Matsuzawa, fixed income strategist at Nomura Securities, said in a research that 5-year Treasuries have sold off about 10 bps over the last two days and breached 0.80 percent that has served as a support since April 2012, a sell-off which "would not have occurred unless expectations of an economic recovery have gained ground to the extent that the monetary policy outlook begins to change."

"The market is aware that risks are toward more hawkish FOMC statements in the future rather than dovish ones," considering a pick-up in the U.S. economic recovery and stock market rally, as well as the underlying global risk-on trend, he said.

YEN SELLING PAUSES

Yen selling paused, helping to bolster the benchmark South Korean stock index which is vulnerable to exchange rate swings as exporters lead market capitalization.

The dollar fell 0.1 percent to 90.78 yen after touching 91.32 on Monday, its highest level since June 2010, while the euro recouped earlier losses against the yen to steady around 122.14 yen after hitting 122.91 on Monday, its highest point since April.

The euro steadied against the dollar at $1.3456.

The pound fell to $1.5687 GBP=D4, near its lowest since August, in part because of comments from incoming Bank of England Governor Mark Carney that there was still scope for monetary policy to do more in the developed world.

"The prospect of more activist monetary policy is not exactly an encouraging one for GBP, certainly not as it comes on top of a host of other negative developments - an economy that is triple-dipping, a government that is struggling to cut its deficit, and soul-searching about the UK's role within the EU," wrote analysts at JPMorgan in a note.

But a more positive global growth outlook underpinned commodities.

U.S. crude rose 0.2 percent to $96.67 a barrel and Brent inched up 0.1 percent to $113.54.

London copper gained 0.2 percent to $8,065.50 a tonne.

Gold inched up 0.3 percent to $1,659.66 an ounce but was capped by receding investor appetite for safe-haven assets.

(Editing by Eric Meijer & Kim Coghill)

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Pentagon to Beef Up Cybersecurity Force to Counter Attacks

WASHINGTON — The Pentagon is moving toward a major expansion of its cybersecurity force to counter increasing attacks on the nation’s computer networks, as well as to expand offensive computer operations on foreign adversaries, defense officials said Sunday.

The expansion would increase the Defense Department’s Cyber Command by more than 4,000 people, up from the current 900, an American official said. Defense officials acknowledged that a formidable challenge in the growth of the command would be finding, training and holding onto such a large number of qualified people.

The Pentagon “is constantly looking to recruit, train and retain world class cyberpersonnel,” a defense official said Sunday.

“The threat is real and we need to react to it,” said William J. Lynn III, a former deputy defense secretary who worked on the Pentagon’s cybersecurity strategy.

As part of the expansion, officials said the Pentagon was planning three different forces under Cyber Command: “national mission forces” to protect computer systems that support the nation’s power grid and critical infrastructure; “combat mission forces” to plan and execute attacks on adversaries; and “cyber protection forces” to secure the Pentagon’s computer systems.

The move, part of a push by Defense Secretary Leon E. Panetta to bolster the Pentagon’s cyberoperations, was first reported on The Washington Post’s Web site.

In October, Mr. Panetta warned in dire terms that the United States was facing the possibility of a “cyber-Pearl Harbor” and was increasingly vulnerable to foreign computer hackers who could dismantle the nation’s power grid, transportation system, financial network and government. He said that “an aggressor nation” or extremist group could cause a national catastrophe, and that he was reacting to increasing assertiveness and technological advances by the nation’s adversaries, which officials identified as China, Russia, Iran and militant groups.

Defense officials said that Mr. Panetta was particularly concerned about a computer attack last August on the state oil company Saudi Aramco, which infected and made useless more than 30,000 computers. In October, American intelligence officials said they were increasingly convinced that the Saudi attacks originated in Iran. They described an emerging shadow war of attacks and counterattacks already under way between the United States and Iran in cyberspace.

Among American officials, suspicion has focused on the “cybercorps” created in 2011 by Iran’s military, partly in response to American and Israeli cyberattacks on the Iranian nuclear enrichment plan at Natanz. There is no hard evidence, however, that the attacks were sanctioned by the Iranian government.

The attacks emanating from Iran have inflicted only modest damage. Iran’s cyberwarfare capabilities are weaker than those of China and Russia, which intelligence officials believe are the sources of a significant number of attacks on American companies and government agencies.

The expansion of Cyber Command comes as the Pentagon is making cuts elsewhere, including in the size of its conventional armed forces.

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Vine Has a Porn Problem Because Of Course It Does

It’s actually pretty surprising that it took everyone three days to figure out that Twitter’s new cell phone camera-powered video sharing app, Vine, is perfect for porn. Vine has it all. It can record reasonably high quality videos of anything you want, on-the-go, and post it publicly for all the Internet to see. You add hashtags so that people can easily find special interest content. There’s even a little comments section so that you can share your thoughts about the distinctively addictive six-second loops. Heck, we’d be surprised if people didn’t immediately start to post pictures of their genitals doing what genitals do. They probably did, actually. Everyone else was just too busy watching pictures of their friends pets and children to notice.

RELATED: The Chinese Want to Know Why Their News Is on Twitter and They Aren’t

But alas, by Sunday everyone had noticed. Although it had already been mentioned on smaller tech blogs, the Vine porn problem started to become widely known after New York Times reporter Nick Bilton tweeted, “Friend: ‘So are people using Vine for porn yet?’ Me: “‘Nah, I don’t think so.’ Friend: ‘Check the hashtag #porn.” Both: “Holy ****!’” And the thing is, he’s totally right. TechCrunch published a post on the NSFW trick — #NSFW works for porn seekers, too, by the way — broaching the topic of Apple‘s App Store coming down hard on the adult-only content. It’s against the rules, see, and Apple has a history of yanking apps that become magnets for all things naughty. The Verge followed up a few minutes later with the headline, “Apple has a porn problem, and it’s about the get worse.”

RELATED: How Not to Get Censored on Twitter

This got us thinking: These App Store restrictions on pornographic content have been around as long as the App Store. Surely in the past five or so years, the moderators know a porn magnet when they see one. Vine is hardly the first video-sharing app to make it through the approval process, not to mention the many photo-sharing apps. (And Apple’s certainly not afraid of enforcing those rules, as we learned when it yanked the 500px app after it started to become home to “pornographic images and material.”) It’s no anomaly that Vine made through, though. As virtually every new video- or photo-sharing service has shown us since the dawn of the Internet, from Flickr to ChatRoulette, it’s very difficult to keep these sites or apps G-rated. So the companies either learn how to police it well, like Flickr does, or they wither and die, as ChatRoulette did.

RELATED: Twitter’s New Hashtag Project Sounds Risky

So it’s hard to believe that the App Store didn’t consider the fact that people might upload pictures of their penises to Vine. It’s more likely that they did and decided to see how Twitter would deal with it, when it became a problem. After all, Vine is not going to be the last video-sharing app to be built and it certainly won’t be the last porn-friendly app to be built either. So Twitter gets to play guinea pig and navigate the tricky terrain of moderating user-generated content in real time. It’s a good thing they already have a boatload of experience doing that on Twitter! See, look how fast they came up with a solution. A company statement reads:

RELATED: The Good, the Bad, and the Fuzzy of Twitter’s New Censorship Rules

Users can report videos as inappropriate within the product if they believe the content to be sensitive or inappropriate (e.g. nudity, violence, or medical procedures). Videos that have been reported as inappropriate have a warning message that a viewer must click through before viewing the video.

Uploaded videos that are reported and determined to violate our guidelines will be removed from the site, and the user that posted the video may be terminated.

Twitter being Twitter — that is, big proponents of the free flow of information — they stop short of defining “inappropriate” in Vine’s terms and conditions. Unlike Twitter, which has been free to operate on the whole of the Internet, however, Vine lives in Apple’s house now. If Twitter’s hands off policy doesn’t do enough to keep smut off the iPhone, Apple will surely pull the plug, and then, well — then we’ll be back to where we were last week.

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How SAG Stars Got Their Start: Sofia Vergara Credits Her 'Hooker Looks'

Today, she's one of the world's sexiest stars. But Sofia Vergara wasn't quite as celebrated for her curves early in her career.

The Modern Family actress was among a handful of actors who kicked off Sunday's Screen Actors Guild Awards with personal stories about how they got started in the business. Vergara, 40, joked about her famous figure.

"I grew up in Barranquilla, Colombia, in a very traditional Catholic home," she said. "My father told me that if I ever did anything artistic, I was going to look like a hooker. I told him, 'With these huge boobs that I inherited from your mother, I already look like a hooker!' "

30 Rock's Jane Krakowski had a little fun with Hollywood's reputation for having no use for aging women. At 12 years old, she said, she played Chevy Chase's niece in National Lampoon's Vacation. Krakowski, 44, added: "Today, I would be cast as his wife. In two years, I will play his mother."

Helen Hunt detailed the crazy variety of her roles – "I've played a waitress, a cuckoo clock, a quarterback and a sex surrogate" – while Alfre Woodard said she was surprised she became an actor at all, since she always had trouble remembering people's names.

Chris Tucker said he became "fascinated with the art" as a 9-year-old when he saw Richard Pryor in Stir Crazy.

For Hal Holbrook, the inspiration was simpler. He was lazy – and acting class didn't give you homework.

How They Officially Joined the Club

Other stars reflected specifically on the moment they got their SAG cards – a momentous moment for many, including Anne Hathaway, who mentioned it at the beginning of her speech in accepting the best supporting actress honor for her role in Les Misérables.

"I got my SAG card when I was 14," she said. "It felt like the beginning of the world. I have loved every single minute of my life as an actor. And I have been the recipient of so much kindness and support from actors in this room and out of it. ... Thank you for this award."

Jennifer Lawrence also mentioned getting a SAG card in her acceptance speech, when she won best actress for Silver Linings Playbook. Like Hathaway, Lawrence – who is now 22 – was 14 at the time.

"I want to thank MTV," she said. "I did an MTV promo for My Super Sweet 16. And I remember getting [the card] in the mail and it being the best day of my entire life because it officially made me a professional actor. Which put me in a category with all of you."

"And now I have this naked statue that means that some of you even voted for me," she added.

Like many actors, Twilight's Peter Facinelli and Modern Family's Ty Burrell both got their SAG cards working on Law & Order.

Facinelli, talking on the red carpet, said he dropped out of college after that. "I ran into [Law & Order creator] Dick Wolf. ... I said, 'I didn't get my diploma because of you, but I got my SAG card because of you." But, Facinelli doesn't regret not finishing school: "I was majoring in theater. It all worked out."

Burrell says he was "unmemorable" on the crime show, which allowed him to play different roles on different episodes. "Nobody noticed that now I was playing an assassin," he joked.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

___

CDC: http://www.cdc.gov/flu/

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Seoul pulls Asian shares down, solid economic data helps

TOKYO (Reuters) - Tech-heavy South Korean shares dragged down the broader Asian share index on Monday on fears of weaker earnings, but improving economic prospects in Europe and solid U.S. profit reports underpinned sentiment.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> inched down 0.2 percent, after seeing its biggest weekly loss in two months last week. Asian markets were in positive territory except in Seoul and Jakarta.

The Korea Composite Stock Price Index (KOSPI) <.ks11> extended losses to an 8-week low with a 0.6 percent slip, as a weakening yen soured the outlook for local exporters and foreign investors reduced their holdings.

Tech-heavy South Korea was also vulnerable to a clouding outlook for high-end smartphone device shipments.

"Investors have begun preempting concerns about exporters' outlooks since automakers announced weak earnings last week, while large-caps continue to be pressured by foreign selloffs," said Kim Hyung-ryol, an analyst at Kyobo Securities.

Global investor sentiment improved on Friday when the German Ifo business morale index improved in January to its highest in more than half a year, further evidence that Europe's largest economy is gathering speed again, and European banks were set to repay the European Central Bank a larger sum of money than expected to underscore stabilising financial system in the euro zone.

In China, data on Sunday showed profits earned by industrial companies rose 17.3 percent in December from a year earlier to 895.2 billion yuan ($143.9 billion), adding to evidence of a fourth-quarter economic recovery.

The yen extended losses to fresh lows, but Japanese equities gave up earlier gains and eased ahead of Japan's corporate reporting season which enters full swing this week.

Japan's Nikkei stock average <.n225> edged down 0.1 percent after jumping 2.9 percent on Friday to log an 11th straight week of gains, its longest such run since 1971. <.t/>

Against the yen, the dollar hit 91.26 early on Monday, its highest level since June 2010 while the euro touched 122.91, its highest point since April.

New Prime Minister Shinzo Abe has called for aggressive monetary easing and huge fiscal spending to beat deflation. The yen has fallen some 13 percent since mid-November when he began making those calls as part of his election campaign.

"The potent mix of Abenomics and strong risk appetite abroad is continuing to soften the yen, which means investors will still be buying stocks," said Masayuki Doshida, senior market analyst at Rakuten Securities.

In sharp contrast to U.S. and German equities, the Nikkei remains well below levels before the financial crisis in 2008, reflecting the magnitude of negative effect from the yen's strength. The benchmark Standard & Poor's 500 Index <.spx> closed at their highest in more than five years on solid U.S. corporate earnings on Friday and Frankfurt's DAX index <.gdaxi> also scaled five-year highs.

The yen is still stronger than around 95 yen before the 2008 financial crisis, but both the euro and the dollar measured against a basket of key currencies <.dxy> hover at levels far below the pre-crisis levels.

SAFE HAVEN SUFFERS

The improving global macroeconomic environment has curbed interest in safe haven assets such as gold.

Spot gold steadied around $1,659.90 (1,053.44 pounds) an ounce on Monday, still below its 200-day moving average. As riskier equities rallied on Friday, bullion saw its biggest weekly drop this year on Friday.

U.S. crude inched up 0.1 percent to $95.95 a barrel and Brent steadied around $113.23.

London copper, another industrial commodity linked to demand prospects, rose 0.4 percent to $8,065 a tonne.

With easing stress in financial markets, investors pumped $5.65 billion into stock funds worldwide in the latest week, with most of it flowing into emerging market stock funds, data from EPFR Global showed on Friday.

The euro hovered near an 11-month high of $1.3480 hit on Friday. The Australian dollar stumbled to an eight-month low against the euro early on Monday. European shares scaled fresh multi-month peaks on Friday.

Investors will focus this week on the Federal Reserve's Open Market Committee statement on Wednesday and U.S. nonfarm payrolls due on Friday.

Sluggish equities weighed on Asian credit markets, widening the spread on the iTraxx Asia ex-Japan investment-grade index by 1 basis point.

(Additional reporting by Joyce Lee in Seoul and Sophie Knight in Tokyo; Editing by Edwina Gibbs & Kim Coghill)

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