BL: Stocks, U.S. Futures, Commodities Advance on Economic Outlook; Yen Weakens
By Will McSheehy
June 14 (Bloomberg) -- Asian stocks climbed for a third day and commodities gained after a report showed U.S. consumer sentiment rose to its highest since January 2008. The yen weakened on signs the global recovery is gaining momentum.
The MSCI Asia Pacific Index rose 1.4 percent to 113.97 as of 4:10 p.m. in Tokyo, with seven times as many shares advancing as declining. The Stoxx Europe 600 increased 0.9 percent to 251.76 at 8:10 a.m. in London. Futures on the Standard & Poor’s 500 Index rose 0.6 percent. Copper gained for a fifth day. Markets in China and Australia are closed today for holidays.
“Investors have been concerned about a double-dip recession in the U.S. later this year,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “The report on consumer sentiment showed it is less likely to be the case as the economy continues to recover.”
Americans are gaining confidence in the economy even as Europe’s debt crisis roils investors, according to the Thomson Reuters/University of Michigan index of consumer sentiment. The benchmark increased to 75.5, beating the median forecast of 65 economists polled by Bloomberg News, from 73.6 in May. Euro zone industrial output expanded 0.5 percent in April from March, according to a separate economist survey before the European Union publishes data today.
Japan’s Nikkei 225 Stock Average climbed 1.7 percent, the biggest increase among equity benchmarks in Asia-Pacific, followed by Taiwan’s Taiex Index, with a gain of 1.2 percent.
U.S. Sales
Sony Corp., the electronics maker that gets 21 percent of revenue from the U.S., climbed 1.6 percent in Tokyo. Posco, Asia’s third-biggest steelmaker, advanced 2.6 percent after the Seoul Economic Daily said the company plans to boost steel- product prices next month. Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard, advanced 2.1 percent after it received a $568 million order.
Taiwan Semiconductor Manufacturing Co., the world’s largest custom-chip maker, advanced 1 percent on expectations a trade agreement with China will boost earnings.
Three-month copper on the London Metal Exchange added 1.7 percent to $6,589 a metric ton. Copper in London capped its best week since April last week after government reports showed China’s exports jumped 48.5 percent in May from a year ago, surpassing all 32 estimates in a Bloomberg News survey of economists.
Currency Forwards
The South Korean won strengthened the most in a week after policy makers said they will give banks time to meet a new ceiling on forward contracts, holding off from imposing controls on capital flows.
The won climbed 1.9 percent to 1,223.05 per dollar, while the Malaysian ringgit strengthened 0.6 percent to 3.2655. Singapore may report higher retail sales and exports this week, according to a Bloomberg News survey.
“The data out of Asia is quite strong, including Singapore this week, and that encourages some fund inflows to the region,” said Akira Banno, a treasury adviser at Bank of Tokyo- Mitsubishi UFJ Bhd. in Kuala Lumpur.
Japan’s currency weakened to as low as 111.90 per euro in Tokyo from 111 in New York on June 11 as demand for the currency as a safe haven diminished. The yen was at 91.88 per dollar from 91.65. The euro climbed to as much as $1.2208, the highest level since June 4.
Energy Demand
Crude oil advanced in New York for the fourth time in five days, rising 1.2 percent to $74.67 a barrel, on speculation sustained growth in the U.S. will boost fuel demand from the world’s biggest energy consumer.
“Fundamentals are getting better and the euro is also driving the crude market,” said Ken Hasegawa, a commodity derivative sales manager at Newedge Group in Tokyo.
Treasuries extended last week’s decline on diminished demand for the relative safety of government debt. The yield on the benchmark 10-year note rose 3 basis points to 3.26 percent in Tokyo, according to BGCantor Market Data.
The cost of insuring Asian bonds with credit-default swaps declined, according to Royal Bank of Scotland Group Plc. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan fell 6.5 basis points to 139 basis points in Singapore, RBS prices show.
To contact the reporter on this story: Will McSheehy in Singapore at wmcsheehy@bloomberg.net
Last Updated: June 14, 2010 03:10 EDT
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