BLBG:Copper Gains on China Data; European Futures Fall as Yen Weakens
Copper gained for a third day on signs China’s economy may be rebounding, while the yen weakened. European index futures and Asian shares fell as investors awaited U.S. economic data and companies including Lloyds Banking Group Plc reported financial results.
Copper rose 0.6 percent at 7:05 a.m. in London after China’s manufacturing expanded for the first time since July. The yen retreated against all 16 major peers. Futures on the Euro Stoxx 50 Index fell 0.3 percent as contracts on the Standard & Poor’s 500 Index slid 0.3 percent. The Shanghai Composite Index (SHCOMP) surged 1.7 percent
A Chinese manufacturing gauge climbed to 50.2 in October, adding to signs growth in the world’s second-biggest economy is accelerating after a seven-quarter slowdown. The U.S. will report factory output and construction spending data today. Sony Corp., Japan’s biggest consumer- electronics exporter, unexpectedly posted its seventh straight quarterly loss, while Sharp Corp. widened its full-year loss forecast.
“While we’ve been seeing improving economic data, it’s too early to get positive on the market given the profit warnings,” said Daphne Roth, the Singapore-based head of Asia equity research at ABN Amro Private Banking, which oversees about $207 billion. “Most indices have done quite well and investors are now focusing on fundamentals.”
Copper for delivery in three months gained 0.6 percent to $7,807.25 a metric ton. Aluminum, nickel and lead also rose at least 0.6 percent. Palladium climbed 1 percent to $610.50 an ounce.
China Data
The Purchasing Managers’ Index advanced from 49.8 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. A separate survey from HSBC Holdings Plc and Markit Economics was at an eight-month high.
“The worst is behind us already and China is bottoming out,” Joy Yang, the chief Greater China economist at Mirae Asset Securities (HK) Ltd. in Hong Kong, said in an interview on Bloomberg Television’s “On the Move Asia” today.
The MSCI Asia Pacific Index dropped 0.3 percent as Panasonic Corp. led consumer discretionary shares lower after projecting a $9.6 billion loss. The gauge has climbed 12 percent since this year’s low on June 4 after the U.S., Europe and Japan added measures to spur their economies. Panasonic sank 19 percent, while Sony slid 4.1 percent and Sharp lost 1.7 percent before reporting their financial results.
Australia’s S&P/ASX 200 Index (AS51) retreated 1.3 percent, the most in since July 23, as National Australia Bank Ltd. slumped 3 percent.
U.S. Output
The Institute for Supply Management’s U.S. factory index was probably at 51 last month from 51.5 in September, according to the median estimate of economists surveyed by Bloomberg News before the report at 10 a.m. New York time.
A Commerce Department report today at the same time will show construction spending climbed 0.7 percent in September after a 0.6 percent decrease, a separate survey showed.
Japan’s currency fell for a third day versus the euro before the Bank of Japan releases minutes of its Oct. 4 to Oct. 5 meeting tomorrow. The yen slid 0.2 percent to 103.61 per euro and lost 0.3 percent to 80.03 per dollar.
Wheat advanced for a second day after a U.S. government report showed winter-crop conditions for this time of the year are the worst in 27 years as drought damage extended to the Great Plains. The grain for delivery in December rose 0.5 percent to $8.69 a bushel on the Chicago Board of Trade.
To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
