European equity futures rose, signaling stocks are set to advance, before data that may indicate an improving economic outlook in the U.S. The euro rebounded from a four-month low and Japan’s bonds surged, while oil and copper climbed. Euro Stoxx 50 Index contracts added 0.4 percent as of 7:25 a.m. in London, while Standard & Poor’s 500 Index futures increased 0.2 percent. The MSCI Asia Pacific Index (MXAP) lost 0.1 percent after rising the most since March 6 yesterday. The yields of Japan’s 10-year bonds touched 0.525, the least since June 2003. The euro climbed 0.2 percent while oil and copper rose at least 0.2 percent. Reports today may show durable-goods orders increased in the U.S. while new-house sales held close to a four-year high last month. Bank of Japan (8301) Governor Haruhiko Kuroda said he’ll consider extending bond maturities for the bank’s asset purchase fund. Cyprus’s bailout plan to tax bank depositors has cast doubt on the safety of financial assets in Europe, sending U.S. stocks and the euro lower yesterday. “Equity markets have had a very strong run, reflecting the improved economic conditions and earnings, but those gains will need to be consolidated,� said Prasad Patkar, a portfolio manager who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Cyprus was the catalyst for that consolidation to commence.� The yen was little changed at 94.25 per dollar, paring an earlier drop after Kuroda outlined monetary easing options to achieve a 2 percent annual inflation goal in two years. The euro rose to $1.2879 after its biggest drop in more than eight months before debt auctions in Italy where lawmakers are still trying to form a government after inconclusive elections last month. Debt Auctions Italy is set to sell bills today and bonds due in 2018 and 2023 tomorrow. The euro zone’s fourth-biggest economy auctioned 2.8 billion euros ($3.6 billion) of 2014 zero-coupon bonds yesterday at the highest since Dec. 27. Democratic Party leader Pier Luigi Bersani has two days left to overcome a shortfall of support in parliament, after President Giorgio Napolitano gave him a mandate on March 22 to try to form a government. Bersani will meet adversary Silvio Berlusconi’s deputies at the People of Liberty party today. “With the political risk in Italy continuing, it will be hard for the euro to make any headway,� said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York. South Korea’s gross domestic product grew 0.3 percent from the third quarter, compared with January’s initial estimate of a 0.4 percent expansion, the Bank of Korea said today. GDP rose 1.5 percent from a year ago, the smallest gain since 2009. The won rose as much as 0.6 percent to 1,104.35 per dollar, the strongest since March 14, before closing at 1,105.58. Stocks Slower growth in Asia’s fourth-largest economy strengthens the rationale for a supplementary budget that President Park Geun Hye may announce this week. Finance Minister Hyun Oh Seok said March 23 that the yen, down 19 percent against the won in the past six months, is “flashing a red light� for exports and urged the Group of 20 nations to revisit the issue. Japan’s Topix Index slid 0.3 percent, while South Korea’s Kospi Index rose 0.3 percent. Australia’s S&P/ASX 200 fell 0.8 percent. The cost of insuring corporate and sovereign bonds in the Asia-Pacific region against non-payment rose, according to traders of credit-default swaps. Bond Risk The Markit iTraxx Australia index increased 3.5 basis points to 121.5 basis points as of 11:05 a.m. in Sydney, Westpac Banking Corp. (WBC) prices show. The measure, which rolled to a new series on March 20, is set for its highest close since Feb. 4, according to data provider CMA. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan gained 2 basis points to 120 in Hong Kong, Royal Bank of Scotland Group Plc prices show. The benchmark, which has ranged from 100.5 to 120.8 since Dec. 31, is set for its highest close since March 22, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market. Gold for immediate delivery dropped 0.2 percent to $1,602.70 an ounce, while oil for May delivery rose 0.2 percent to $95.03 a barrel in New York, trading near yesterday’s five- week high. Tin fell 1.4 percent to $22,866 a metric ton, the most in a week as inventories in London Metal Exchange warehouses are close to the highest level in almost 10 months. Copper gained 0.3 percent to $7,642 a ton as a strike at a main export terminal in Chile continued. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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