Crude oil rose for a second day on speculation that economic growth in China and Japan, the world’s second- and third-largest oil consumers, will boost energy demand. Oil climbed as much as 1.7 percent after data showed China’s manufacturing may expand in October and Japan’s exports exceeded economists’ forecasts. Prices also gained as U.S. stocks moved higher after Caterpillar Inc. reported earnings that beat analyst estimates. “We’ve got some decent numbers out of China and Japan and oil is up because of this economic optimism,” said Phil Flynn, an analyst with PFGBest in Chicago. “Oil has been moving with equities recently.” Crude for December delivery rose $1.29, or 1.5 percent, to $88.69 a barrel at 10:03 a.m. on the New York Mercantile Exchange. Prices are down 3 percent so far this year. Brent oil for December settlement increased 59 cents, or 0.5 percent, to $110.15 a barrel on the London-based ICE Futures Europe exchange. China’s manufacturing may expand this month for the first time since June, snapping the longest contraction since 2009, according to a preliminary index of purchasing managers by HSBC Holdings Plc and Markit Economics released today. The reading of 51.1 for the index was the highest in five months and compares with the final reading of 49.9 for September and August. A reading above 50 indicates expansion. Japanese Exports Japanese exports rose 2.4 percent in September from a year earlier as demand for cars and auto parts increased, the Ministry of Finance said in Tokyo today. The median estimate of 26 economists surveyed by Bloomberg was for a 1 percent increase. “As long as China and Japan are growing, they are going to buy an increasing amount of crude oil from the rest of the world, and that’s good for the oil market,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. The Standard & Poor’s 500 Index advanced 0.6 percent to 1,245.18, and Dow Jones Industrial Average rose 0.4 percent to 11,855.42. The S&P’s GSCI Index of 24 raw materials increased 1 percent to 637.12. Caterpillar, the world’s largest maker of construction and mining equipment, posted third-quarter net income that topped analysts’ estimates. European leaders yesterday held their 13th crisis summit in 21 months, debating how to cut Greece’s debt burden, boost the firepower of the region’s bailout fund and bolster banks ahead of a further meeting on Oct. 26. “If Europe doesn’t come up with anything, this is going to get ugly, and that’s what’s driving the boat right now,” said O’Grady. To contact the reporters on this story: Moming Zhou in New York at Mzhou29@bloomberg.net; To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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