Asian stocks rose from a one-year low as German and French leaders said they’re certain Greece will remain in the euro zone. New Zealand’s dollar slid after the central bank held interest rates amid the risk of slowing global economic growth.
The MSCI Asia Pacific Index rose 1.6 percent at 11:30 a.m. in Tokyo, rebounding from the lowest level since August 2010. Standard & Poor’s 500 Index futures rose 0.1 percent, indicating the U.S. stocks gauge will extend a three-day rally. The euro lost 0.2 percent to $1.3729 before a Spanish debt sale and the so-called kiwi dropped against all 16 major peers. Oil futures slipped a second day.
French President Nicolas Sarkozy and German Chancellor Angela Merkel said they’re convinced Greece will remain in the euro area after Greek Prime Minister George Papandreou committed to meet deficit-reduction targets. Spain plans to sell as much as 4 billion euros ($5.5 billion) of bonds today. Reserve Bank of New Zealand Governor Alan Bollard said there is now a greater risk the global economy will slow “sharply,” while data today may show U.S. inflation eased and industrial production stalled.
“We’re seeing some ‘risk-on’ trading on hopes that the European issue will be pushed further down the road,” said Belinda Allen, senior analyst of investment markets research at Colonial First State Global Asset Management in Sydney, which oversees about $150 billion. “Despite the comments from the French and German leaders, Europe still has a lot of issues to work through that will impact markets over coming months.”
About six shares rose for every one that declined on MSCI’s Asia Pacific Index. The gauge sank 1.7 percent yesterday to close at the lowest level since Aug. 25, 2010. Japan’s Nikkei 225 Stock Average advanced 1.6 percent, Australia’s S&P/ASX 200 Index climbed 1.4 percent and South Korea’s Kospi Index rallied 1.5 percent.
Chipmakers Gain
Elpida Memory Inc. jumped 5 percent in Tokyo after the chipmaker said it may shift some production from its plant in Hiroshima, Japan, to Taiwan as part of its plans to cope with a strong yen and an industry slump. Hynix Semiconductor Inc. (000660) rose 4.8 percent in Seoul. Semiconductor makers are gaining amid speculation computer memory chips will stabilize soon, said Choi Do Yeon, an analyst with LIG Investment & Securities Co.
The S&P 500 rose 1.4 percent yesterday, rounding off a three-day, 3 percent rally. U.S. data today may show consumer prices rose 0.2 percent in August from July, when inflation was at 0.5 percent, according to the median forecast in a Bloomberg News survey. Industrial production probably posted no growth last month, a separate survey showed. Treasury 10-year yields were little changed at 1.98 percent.
Greece’s Future
Greece’s Papandreou yesterday committed to meet deficit- reduction targets demanded as a condition for an international bailout, according to statements distributed by Athens and Paris. Sarkozy and Merkel “are convinced that the future of Greece is in the euro zone,” the French statement said, easing concern that the monetary union may fall apart.
European equity markets closed before the statement was released. The Stoxx Europe 600 Index rose 1.5 percent yesterday, a second day of gains.
Treasury Secretary Timothy F. Geithner is scheduled to attend a session of the European Union’s Economic and Financial Affairs Council in Wroclaw, Poland for the first time. Zhang Xiaoqiang, a vice chairman of the National Development and Reform Commission, said China is willing to buy bonds of nations hit by the debt crisis.
The euro was at 105.18 yen after yesterday snapping four days of losses against Japan’s currency. The auction by Spain today comes two days after Italy’s borrowing costs surged at a bill sale.
N.Z. Rates
The kiwi fell as New Zealand’s central bank kept its official cash rate at a record-low 2.5 percent today, a decision predicted by all 15 economists surveyed by Bloomberg.
Crude for October delivery decreased 0.5 percent to $88.43 a barrel on the New York Mercantile Exchange. Futures sank 1.4 percent yesterday. Gasoline stockpiles rose 1.94 million barrels last week, the biggest gain since June, according to the Energy Department.
Immediate-delivery gold retreated 0.4 percent to $1,812.05 an ounce, bound for a second-day of losses. Zinc for three-month delivery added 0.5 percent on the London Metal Exchange, halting two days of losses.
To contact the reporters on this story: Shiyin Chen in Singapore at schen37@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment