By Michael P. Regan June 2 (Bloomberg) -- U.S. stocks rose and Treasuries fell as better-than-estimated growth in home sales bolstered optimism in the economy and energy producers rebounded after yesterday’s tumble. The yen dropped following Japanese Prime Minister Yukio Hatoyama’s resignation. The Standard & Poor’s 500 Index climbed 1.1 percent to 1,082.23 at 11:36 a.m. in New York, while the MSCI World Index of stocks in 24 developed nations rose 0.1 percent after slumping 0.9 percent earlier. Ten-year Treasury yields climbed 4 basis points to 3.3 percent, while the yen slumped against 15 major counterparts. U.S. equities rebounded after yesterday’s slump dragged benchmark indexes to near three-month lows. Stocks extended gains as pending sales of existing homes rose 6 percent in April to the highest level since October as buyers took advantage of the last month of a government tax credit. Homebuilders across S&P indexes rallied 1.4 percent as a group, led by D.R. Horton Inc. and Toll Brothers Inc., as the data fueled speculation the housing market is stabilizing. “This data is still very much influenced by the expiring $8,000 tax credit but even so the sustained recovery in activity is a credible indicator of a repair to the psyche of the existing and new home markets,” Michael Shaoul, chief executive officer of Oscar Gruss & Son Inc. in New York, wrote in a note to clients. “Low interest rates, moderate home prices and improving employment represent a positive backdrop for the housing market.” S&P 500 Rebounds The S&P 500 erased more than half of yesterday’s 1.7 percent slump. The index’s energy shares rallied today on speculation the group’s 18 percent tumble from April 23 through yesterday overshot the potential damage to profits from the Gulf of Mexico oil spill. Wells Fargo & Co. advanced 1.7 percent after saying it holds “very little” sovereign debt and that consumer credit began to improve last November. Halliburton Co., which provided oilfield services to the BP well, rose 7.5 percent. The Stoxx Europe 600 Index lost 0.2 percent, recovering most of a 1.4 percent slide. BP was little changed in London after yesterday’s 13 percent slide, its biggest since 1992. Petroleum Geo-Services ASA, which provides surveys of oil and gas fields, dropped 2.1 percent in Oslo. The U.S. Justice Department yesterday said it’s investigating whether any criminal or civil laws were violated when a drilling rig leased by BP exploded in the Gulf of Mexico in April. The biggest oil spill in U.S. history may damage the prospects of other energy companies seeking to operate offshore. Yen Weakens Currencies of commodity-producing nations rallied the most against the yen, with the Canadian dollar, Mexican peso and Brazilian real each gaining more than 2 percent. Japan’s Hatoyama said he’ll step down, less than two months before elections, raising concerns that the world’s second- largest economy will continue to sputter at the same time that China takes steps to cool growth and Europe struggles amid record deficits. Hatoyama’s resignation is “sending the yen lower across the board,” a team of strategists at Societe Generale SA led by London-based Vincent Chaigneau wrote in a report today. “The yen could remain under pressure in the very near term as political uncertainty remains elevated.” The Nikkei 225 Stock Average dropped 1.1 percent as Sony Corp. sank 2.8 percent in Tokyo. Mitsui & Co., which owns a stake in a BP oil field in the Gulf of Mexico, slumped 8.3 percent amid concern about stricter regulations on companies operating in the region. Bank of China Ltd. tumbled 5.1 percent in Shanghai on speculation a convertible bond sale will dilute shareholders’ stakes. Emerging Markets Emerging-market erased earlier losses. The MSCI Emerging Markets Index was unchanged after sinking as much as 0.8 percent earlier. The S&P GSCI Index of commodities reversed earlier losses to rise 0.9 percent as oil turned higher. Crude for July delivery rallied 1.1 percent to $73.41 a barrel in New York. Copper for delivery in three months declined 1.6 percent to $6,639 a metric ton on the London Metal Exchange. Aluminum, nickel and zinc also retreated. Gold for immediate delivery fell 0.6 percent to $1,218.25 an ounce in London. To contact the reporter on this story: Michael P. Regan in New York at Mregan12@bloomberg.net.

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