JPMorgan to issue principal-protected notes linked to Asian index basket

By E. Janene Geiss

Philadelphia, Dec. 5 - JPMorgan Chase & Co. plans to price an issue of 0% principal-protected notes due Jan. 3, 2008 linked to a basket of Asian stock indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the AMEX Hong Kong 30 index with an 18% weight, the FTSE/Xinhua China 25 index with a 17.4% weight, the Korea Stock Price Index 200 with a 32.1%, the MSCI Taiwan index with a 23.4% weight and the MSCI Singapore index with a 9.1% weight.

The notes are expected to price Jan. 5 and settle Jan. 10.

Payout at maturity will be par plus any positive gain on the basket, which will be multiplied by the participation rate. The participation rate will be determined at pricing and will be at least 100%.

There will also be a cap on the maximum payout, again to be determined at pricing and to be at least 9.15%.

The basket closing level will be determined by the average level on Dec. 18, Dec. 21, Dec. 24, Dec. 27 and Dec. 28, 2007.

Investors will receive at least par.

J.P. Morgan Securities Inc. will be the agent for the offering.

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