BLBG:Stocks Rise With Commodities on Speculation of Greek Accord; Yen Weakens
Global stocks, metals and crude oil advanced on improving U.S. data and optimism Greece will get a bailout. The yen weakened to the lowest level against the dollar in more than three months.
The MSCI All-Country World Index (MXWD) gained 0.6 percent as of 8:06 a.m. in London. The Euro Stoxx 600 Index climbed 0.5 percent as Aker Solutions (AKSO) ASA posted higher earnings. Standard & Poor’s 500 Index futures were little changed after the gauge rose 1.1 percent yesterday. The MSCI Asia Pacific Index added 1.1 percent. Copper increased 1.2 percent, rising for the first time in six days, and nickel advanced 1.4 percent. Oil gained for a third day.
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.”
Europe Earnings
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.
Aker Solutions may be active after Norway’s biggest oil- platform maker reported fourth-quarter net income increased 20 percent from a year earlier to 675 million Norwegian krone ($118 million), beating analyst estimates.
Almost three shares rose for each that fell on the MSCI Asia Pacific Index, which is set for its ninth week of advances, equaling its longest run of weekly gains seen in 1988, 1993 and 2005. Japan’s Nikkei 225 Stock Average climbed 1.6 percent, while South Korea’s Kospi Index (KOSPI) rose 1.3 percent.
Samsung Electronics Co., Asia’s biggest consumer electronics maker, climbed 3.6 percent in Seoul. James Hardie Industries SE, a building-materials supplier that mostly depends on the U.S. market, advanced 2.3 percent in Sydney.
Billabong Jumps
Billabong International Ltd. surged 46 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 ($824 million).
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.
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 $8,384.25. Oil added 0.6 percent to $102.95 a barrel, trading at the highest level in more than a month on an intraday basis.
The yen dropped against all its major peers, declining to 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 79.08 yen per dollar after earlier reaching 79.18 yen, 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.
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
