BLBG:Stocks From Europe to Asia Climb on China; Oil Declines
European stocks climbed as shares in Asia extended the longest rally in the benchmark gauge this year on improving Chinese factory and retail sales. The Indian rupee and Malaysian ringgit strengthened while crude oil slipped for a second day.
The Stoxx Europe 600 Index gained 0.8 percent at 8:23 a.m. in London, and Standard & Poor’s 500 Index (SPX) futures increased 0.2 percent. The MSCI Asia Pacific Index rose 1 percent, advancing for a ninth day in its longest winning streak since December. The rupee and ringgit extended gains, strengthening at least 0.4 percent. West Texas Intermediate oil sank 0.8 percent. Treasuries fell, pushing the 10-year yield three basis points higher to 2.944 percent.
China’s industrial production rose 10.4 percent in August from a year earlier and retail sales gained 13.4 percent, the National Bureau of Statistics said on its website today, adding to signs the world’s second-largest economy is rebounding. In France, factory output slid for a third month in July, underscoring the government’s struggle to revive growth. Oil fell on speculation Russia’s plan to get Syria to surrender its chemical weapons will help avert a U.S. strike.
“The market should be pretty positive that industrial production in China is picking up,” said Evan Lucas, a Melbourne-based markets strategist at IG Ltd. “Positive indicators from China coupled with what’s going on in Japan really puts Asia back on track, making the region a very good investment case.”
Bull Market
Policy makers in the nine-member Bank of Japan expect the government to push measures aimed at boosting fiscal health, minutes of the last meeting released today showed.
Alcatel-Lucent SA, which manufactures telecommunications equipment, jumped 6.8 percent, while PSA Peugeot Citroen Europe’s second-biggest carmaker, added 4.3 percent, rising for a fifth day. Glencore Xstrata Plc rose 3.4 percent after the commodities supplier raised its estimate for financial gains from the merger with Xstrata Plc.
In Asia, Japan’s Topix Index rallied for a second day, jumping 1.5 percent and set for its highest close since Aug. 6. The Jakarta Composite Index advanced 2.8 percent and India’s S&P BSE Sensex was up 2.4 percent, headed for its biggest four-day gain in more than four years.
Marine transport provider Mitsui O.S.K. Lines Ltd. climbed 6 percent after the Baltic Dry Index, a measure of commodity-shipping prices, posted its biggest advance in more than four years. China Shipping Container Lines Co. surged 10 percent, the most since Sept. 9.
The Hang Seng China Enterprise Index, the benchmark index for Chinese stocks listed in Hong Kong, is poised to enter a bull market after advancing 20 percent from its June 25 low after valuations fell to the cheapest levels since 2008.
Rupee, Ringgit
The advance in China’s industrial production compared with a median estimate for 9.9 percent growth in a Bloomberg News survey of 45 economists and a 9.7 percent increase in July. Retail sales compared with the median projection for a 13.3 percent advance and a 13.2 percent gain the previous month.
India’s rupee rose for a fourth day, the longest winning streak since February, on speculation a report showing U.S. companies hired fewer workers than forecast in August makes the Federal Reserve less likely to cut stimulus this month. The rupee, which touched an all-time low of 68.845 on Aug. 28, gained 1.5 percent to 64.2850. Indian markets were shut yesterday for a local holiday.
Treasury Yields
Malaysia’s ringgit climbed 0.1 percent to 3.2867. Australia’s dollar increased to 92.90 U.S. cents, the highest since July 26, before trading up 0.2 percent at 92.50. Japan’s yen fell 0.4 percent to 99.96, after slipping 0.5 percent yesterday. The Bloomberg U.S. Dollar Index was steady after falling 0.4 percent in New York.
Ten-year Treasury yields rose 3 basis points, or 0.03 percentage point, to 2.944 percent. Australian government bonds due in a decade yielded 4.126 percent, up 6 basis points after falling for the first time in six days yesterday.
The Federal Reserve will cut Treasury purchases that have fueled global asset gains to $35 billion from $45 billion, while maintaining mortgage-bond buying at $40 billion, according to the median of 34 responses in a Bloomberg survey released Sept. 6. The FOMC is scheduled to meet Sept. 17-18.
Copper, Gold
WTI crude slipped to $108.63 a barrel, following yesterday’s 0.9 percent slide in New York. Gasoline futures lost 0.6 percent, while contracts on natural gas added 0.5 percent. Brent fell 0.6 percent to $113.05.
U.S. President Barack Obama said in an interview with NBC News he isn’t confident that he’ll get congressional approval for a military strike against Syria. Obama, who will address the nation on the matter tonight, said a Russian proposal to convince Syria to give up its chemical weapons is a “potentially positive development,” while expressing skepticism on whether President Bashar al-Assad’s government will follow through.
Soybeans declined for a second day on expectations rain forecast for the Midwest will help ease crop stress in the biggest U.S. growing region. The contract for November delivery dropped as much as 1.2 percent to $13.4025 a bushel on the Chicago Board of Trade.
Copper for delivery in three months fell 0.3 percent and nickel slumped 0.9 percent, while gold in the spot market slid 0.7 percent and silver lost 1.6 percent.
To contact the reporters on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net; Emma O’Brien in Wellington at eobrien6@bloomberg.net
To contact the editor responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net
