Asian stocks advanced, with the benchmark index equaling its longest run of weekly gains, while metals rose on improving U.S. data and optimism Greece will get a bailout. The yen fell to the lowest level against the dollar in more than three months.
The MSCI Asia Pacific Index (MXAP) gained 1 percent as of 12:31 p.m. in Tokyo as Japan’s Nikkei 225 Stock Average jumped 1.6 percent. Standard & Poor’s 500 Index futures were little changed after the gauge rose 1.1 percent yesterday. Copper increased 1.2 percent, advancing for the first time in six days, and zinc added 1.5 percent. The won gained the most in two weeks. Measures of credit risk fell across Asia.
U.S. jobless claims fell to a four-year low and housing starts topped forecasts, while reports later today will probably show the world’s biggest economy is recovering with little inflation. European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the European Central Bank to plug a new financing gap in the second Greek bailout, two people familiar with the talks said.
“It’s a distinct improvement from the fourth quarter last year from the perspective of investor confidence and risk appetite,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “When there’s a bit of relief from the European front, the markets can focus on fundamentals, which seem to be improving by the day.”
Exporters Rally
More than three shares rose for each that fell on the MSCI Asia Pacific Index, which is heading for its ninth week of advances. The streak equals the duration of rallies seen in 1988, 1993 and 2005. South Korea’s Kospi Index (KOSPI) rose 1.4 percent, while Hong Kong’s Hang Seng Index added 0.7 percent.
Exporters led the rally after data showed Americans filing for jobless benefits unexpectedly dropped by 13,000 last week to 348,000, the fewest since 2008. Other reports showed consumer confidence improved, housing starts climbed and manufacturing in the Philadelphia area accelerated.
Samsung Electronics Co., Asia’s biggest consumer electronics maker, climbed 3.4 percent in Seoul. Toyota Motor Corp., the world’s largest carmaker, gained 1.5 percent in Tokyo.
Billabong International Ltd. surged 48 percent in Sydney after Australia’s biggest surfwear maker received a takeover approach from buyout firm TPG Capital valuing the company at A$765 million ($823 million).
Reports later today may show an index of U.S. leading indicators improved for a fourth month, while the cost of living rose 0.3 percent. In Europe, data may show the pace of German producer-price increases moderated during January from a year earlier and U.K. retail sales declined.
Won, Yen
Copper for delivery in three months gained as much as 1.4 percent in London to $8,419.75 a metric ton before trading at $8,395.25. Crude oil traded near a six-week high in New York.
South Korea’s won rose as overseas investors added to their holdings of the nation’s shares, building on $7.9 billion of net purchases this year through yesterday.
The yen dropped against all its major peers, reaching the weakest in more than three months against the dollar, as gains in Asian stocks and signs of growth in the U.S. economy damped demand for haven assets. Japan’s currency slid 0.2 percent to 79.06 yen per dollar after earlier touching 79.18, the lowest since Oct. 31.
The euro was little changed before a meeting of euro-area finance ministers in Brussels on Feb. 20 to discuss a second bailout for Greece that includes a debt swap agreement. The European Central Bank is swapping its Greek bonds for new ones to ensure it isn’t forced to take losses in a debt restructuring, three euro-area officials said.
The cost of insuring Asia-Pacific corporate and sovereign bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Australia index dropped 9 basis points to 146 basis points in Sydney, according to Credit Agricole CIB. That would be the biggest daily decrease since Nov. 30, prices from data provider CMA show.
The MSCI Asia Pacific Index (MXAP) gained 1 percent as of 12:31 p.m. in Tokyo as Japan’s Nikkei 225 Stock Average jumped 1.6 percent. Standard & Poor’s 500 Index futures were little changed after the gauge rose 1.1 percent yesterday. Copper increased 1.2 percent, advancing for the first time in six days, and zinc added 1.5 percent. The won gained the most in two weeks. Measures of credit risk fell across Asia.
U.S. jobless claims fell to a four-year low and housing starts topped forecasts, while reports later today will probably show the world’s biggest economy is recovering with little inflation. European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the European Central Bank to plug a new financing gap in the second Greek bailout, two people familiar with the talks said.
“It’s a distinct improvement from the fourth quarter last year from the perspective of investor confidence and risk appetite,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “When there’s a bit of relief from the European front, the markets can focus on fundamentals, which seem to be improving by the day.”
Exporters Rally
More than three shares rose for each that fell on the MSCI Asia Pacific Index, which is heading for its ninth week of advances. The streak equals the duration of rallies seen in 1988, 1993 and 2005. South Korea’s Kospi Index (KOSPI) rose 1.4 percent, while Hong Kong’s Hang Seng Index added 0.7 percent.
Exporters led the rally after data showed Americans filing for jobless benefits unexpectedly dropped by 13,000 last week to 348,000, the fewest since 2008. Other reports showed consumer confidence improved, housing starts climbed and manufacturing in the Philadelphia area accelerated.
Samsung Electronics Co., Asia’s biggest consumer electronics maker, climbed 3.4 percent in Seoul. Toyota Motor Corp., the world’s largest carmaker, gained 1.5 percent in Tokyo.
Billabong International Ltd. surged 48 percent in Sydney after Australia’s biggest surfwear maker received a takeover approach from buyout firm TPG Capital valuing the company at A$765 million ($823 million).
Reports later today may show an index of U.S. leading indicators improved for a fourth month, while the cost of living rose 0.3 percent. In Europe, data may show the pace of German producer-price increases moderated during January from a year earlier and U.K. retail sales declined.
Won, Yen
Copper for delivery in three months gained as much as 1.4 percent in London to $8,419.75 a metric ton before trading at $8,395.25. Crude oil traded near a six-week high in New York.
South Korea’s won rose as overseas investors added to their holdings of the nation’s shares, building on $7.9 billion of net purchases this year through yesterday.
The yen dropped against all its major peers, reaching the weakest in more than three months against the dollar, as gains in Asian stocks and signs of growth in the U.S. economy damped demand for haven assets. Japan’s currency slid 0.2 percent to 79.06 yen per dollar after earlier touching 79.18, the lowest since Oct. 31.
The euro was little changed before a meeting of euro-area finance ministers in Brussels on Feb. 20 to discuss a second bailout for Greece that includes a debt swap agreement. The European Central Bank is swapping its Greek bonds for new ones to ensure it isn’t forced to take losses in a debt restructuring, three euro-area officials said.
The cost of insuring Asia-Pacific corporate and sovereign bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Australia index dropped 9 basis points to 146 basis points in Sydney, according to Credit Agricole CIB. That would be the biggest daily decrease since Nov. 30, prices from data provider CMA show.
