Trader's Highlight

DJI-NEW YORK, May 27 (Reuters) - U.S. stocks dropped on Wednesday as rising yields on U.S. government debt fueled concern that businesses and consumers could face higher borrowing costs, which could hamper an economic recovery.

The Dow Jones industrial average <.DJI> fell 173.47 points, or 2.05 percent, to end at 8,300.02. The Standard & Poor's 500 Index <.SPX> was down 17.27 points, or 1.90 percent, at 893.06. The Nasdaq Composite Index <.IXIC> was down 19.35 points, or 1.11 percent, at 1,731.08.

NYMEX-NEW YORK, May 27 (Reuters) - U.S. crude oil futures held their gains in post-settlement trading on Wednesday, as data from the American Petroleum Institute showed a larger-than-expected drawdown in crude stocks last week.

On the New York Mercantile Exchange at 5 p.m. EDT (2100 GMT), July crude was up 52 cents, or 0.83 percent, at $62.97 a barrel. It earlier settled up $1, or 1.6 percent, at $63.45, the highest close since $65.30 on Nov. 5. It traded from $62.19 to $63.82, the highest intraday since $65.56 was hit on Nov. 10.

CBOT-SOYBEANS - July up 1-1/2 cents per bushel at $11.87. November up 7-1/2 at $10.50.

Shrinking soy stocks, strong export demand and fund buying combine to boost soy to $12 per bushel, an eight-month high.

USDA said U.S. soy planting 48 percent complete, below the 65 percent five-year average but within trade estimates for 45 to 50 percent.

U.S. Census Bureau to issue monthly crush data on Thursday.

CBOT-SOYOIL - July up 0.06 cent per lb at 37.81. Spillover support from gains in soy with firm crude oil also supportive.

FCPO-KUALA LUMPUR, May 27 (Reuters) - Malaysian palm futures jumped 3.1 percent on Wednesday, with more buyers back into the market a day after a sell off, on concerns stock levels this month could go lower.

The benchmark August contract on Bursa Malaysia's Derivatives Exchange rose 75 ringgit to 2,505 ringgit ($718.4) per tonne. Overall volume surged to 17,373 lots of 25 tonnes each from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, May 27 (Reuters) - Most Southeast Asian stocks rose
on Wednesday as energy shares jumped on higher oil prices and Singapore's index neared an eight-month high with CapitaLand and DBS Group leading the way.

Singapore's index <.FTSTI> jumped 3 percent to its highest since October 3, Thailand's benchmark SET index <.SETI> climbed 2.3 percent, Indonesia's index <.JKSE> rose 1.9 percent and Bucking the trend, Malaysian stocks <.KLSE> closed down 0.4 percent, ahead of an announcement by the country's central bank that the local economy contracted a larger-than-expected 6.2 percent in the first quarter from a year ago.