BLBG:Yen Gains as Australian Stocks Rise, Europe Futures Fall
The Japanese yen climbed for a second day as Bank of Japan policy makers meet and after a Group of Seven official expressed concern about the currency’s slump. Australia’s stocks and dollar rose as European futures fell.
Contracts on the Europe Stoxx 50 Index slid 0.1 percent as of 4:24 p.m. in Tokyo before the release of industrial output data in the region. Standard & Poor’s 500 Index futures were little changed after President Barack Obama’s State of the Union address. The yen increased 0.4 percent to 93.07 per dollar. Australia’s S&P/ASX 200 Index ended at the highest in almost three years and the currency climbed for a second day.
Industrial production in the euro area probably rose in December, according to economist estimates before data today. The yen rallied after an unidentified G-7 official said Japan will be discussed at a Group of 20 meeting amid concern the currency’s moves had been excessive. The Bank of Japan policy meeting ends tomorrow. Australian shares and the Aussie rose after consumer confidence surged the most since September 2011.
“The market was roiled by conflicting interpretations of the G-7 statement,” said Noriaki Murao, managing director of the marketing group at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “We can easily expect some criticisms about Japan’s monetary policy at the G-20 and the market remains cautious. The yen is likely to be whipsawed by statements from the U.S.”
State of Union
The MSCI Asia Pacific Index rose 0.1 percent. Commonwealth Bank of Australia, the nation’s largest lender, climbed 2.4 percent as retail banking and wealth management boosted first- half profit. Leighton Holdings Ltd. jumped 11 percent as Australia’s biggest construction company returned to full-year profit as it completed major projects and reduced debt.
Of the 304 companies on the MSCI Asia Pacific index that reported earnings this quarter and for which Bloomberg has estimates, 52 percent exceeded profit expectations and some 48 percent missed them. That compares with 74 percent of S&P 500 companies that topped profit forecasts, while 25 percent fell short, data compiled by Bloomberg show.
Tata Motors Ltd. advanced 2.7 percent, leading gains in the BSE India Sensitive Index, after unit Jaguar Land Rover reported January sales increased 32 percent.
Finance ministers and central bankers from the G-20, which includes the G-7 and emerging markets such as Brazil, China and India, meet in Moscow on Feb. 15-16. In his first State of the Union address since winning re-election, Obama called for a higher minimum wage to boost the U.S. economy, vowed to begin talks on a trade agreement with the European Union and spend $50 billion on “urgent” infrastructure projects. The S&P 500 Index climbed to its highest level since 2007 yesterday.
Japan, Singapore
Japan’s Nikkei 225 Stock Average retreated 1 percent as exporters dropped on concern a stronger yen will cut overseas earnings when repatriated. Gree Inc. slumped 15 percent after reducing its outlook on delays to new social-networking games.
Singapore’s Straits Times Index advanced 1 percent, while the FTSE Bursa Malaysia KLCI Index gained 0.6 percent as the markets reopened after the Chinese New Year holiday. Those in China, Hong Kong, Taiwan and Vietnam remain shut. South Korea’s Kospi Index climbed 1.6 percent, the biggest gain since Jan. 2, as Vice Finance Minister Shin Je Yoon said today North Korea’s nuclear test had a “limited” effect on markets.
The won rose 0.4 percent as speculation the G-20 will discuss the yen’s slump eased concern South Korea’s policy makers will move to weaken its currency to protect exporters. The Bank of Korea is expected to keep its benchmark interest rate unchanged at its monetary policy meeting tomorrow. The Japanese currency added 0.5 percent against the euro to 125.09 yen as the European currency slipped versus the dollar.
Palladium advanced as much as 0.4 percent to $774.75 an ounce before trading at $773.25. Platinum increased 0.1 percent to $1,719.75 an ounce. Zimbabwe has seized some land owned by Zimplats Holdings Ltd., the country’s biggest platinum miner, raising concerns about supplies.
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
