BLBG:Euro Trades Near Three-Week High as Asian Stocks, Copper Climb
The euro traded near a three-week high before European finance ministers meet to discuss unlocking bailout funds for Greece. Copper gained for a second day while European index futures were little changed.
The euro rose 0.1 percent to 1.2896 per dollar at 7:10 a.m. in London. Euro Stoxx 50 Index futures added 0.1 percent while contracts on the Standard & Poor’s 500 Index increased 0.3 percent in the U.S., where markets were closed yesterday. The MSCI Asia Pacific Excluding Japan Index climbed 0.7 percent, with Japan shut today. The yen strengthened 0.2 percent against the greenback after touching the weakest level since April yesterday. Copper rose 0.2 percent, while Brent crude dropped.
Euro-area finance ministers will meet Nov. 26 to discuss Greek aid after leaders failed to agree the bloc’s next seven- year budget at a summit in Brussels. Data today may show German business confidence fell to the lowest level in almost three years.
“Overall market activity is subdued following the holiday in the U.S. and as investors wait for a solution to Greece’s debt problem,” Monthol Junchaya, chief investment officer at Bangkok-based One Asset Management Ltd., which manages about $2.3 billion of assets, said by phone today.
A gauge tracking technology companies climbed 1.9 percent on MSCI’s Asian index. Taiwan Semiconductor Manufacturing Co., the world’s largest contract maker of chips, jumped 4.6 percent to a record in Taipei. Samsung Electronics Co. rose 1.5 percent in Seoul to its highest ever to become the world’s 15th most- valuable company.
Trading Volumes
Taiwan’s Taiex Index surged 3.1 percent, the most in 11 months, after the Central News Agency cited Finance Minister Chang Sheng-ford as saying the island’s state-backed banks and funds should buy local stocks at lows. Trading volumes on the Taiex were 73 percent higher than the 30-day average for this time of day, according to data compiled by Bloomberg.
The MSCI Asia Pacific Excluding Japan Index (MXAPJ) climbed 2.6 percent this week, the most in two months, as data on China manufacturing, U.S. jobs and housing this week bolstered confidence in the world’s largest economies.
The euro rose against 10 of its 16 major counterparts after reaching $1.2899 yesterday, the strongest since Nov. 2. European officials will continue work on an updated aid package for Greece into this weekend in preparation for next week’s meeting.
Business Confidence
The Ifo institute’s German business climate index fell to 99.5 from 100 in October, according to the median forecast of 48 economists in a Bloomberg survey. That would be the seventh drop and the lowest level since January 2010.
The yen strengthened against all 16 major peers. Japanese opposition leader Shinzo Abe, the front-runner to become the next prime minister, said he would be more reluctant than the current government to intervene in foreign-exchange markets, the Wall Street Journal reported.
The Indian rupee declined 0.4 percent to 55.4250 as Prime Minister Manmohan Singh seeks lawmakers’ support for plans to allow more foreign investment in pension and insurance.
Copper for delivery in three months in London added 0.2 percent to $7,730 a metric ton. Tin rose 0.4 percent.
Brent oil for January settlement fell 0.3 percent to $110.26 a barrel. West Texas Intermediate for January delivery was at $87.16 a barrel in electronic trading in New York, down 0.3 percent from the Nov. 21 close. A cease-fire between Israel and Hamas eased concern that tension in the Middle East will disrupt the region’s crude supplies.
To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net; Anuchit Nguyen in Bangkok at anguyen@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
