BLBG:Asia Stocks Rise, Led by India Shares; Oil Falls
Asian stocks and emerging-market currencies rallied as losses in oil eased concern inflation pressure will derail economic-stimulus policies. The euro rose before a new round of central bank lending.
The MSCI Asia Pacific Index (MXAP) climbed 0.6 percent as of 4:06 p.m. in Tokyo, after earlier falling 0.3 percent. Euro Stoxx 50 Index futures increased 0.4 percent and Standard & Poor’s 500 Index futures added 0.3 percent. India’s Sensex jumped 1.7 percent, while Malaysia’s ringgit advanced 0.5 percent. The euro strengthened against 12 of its 16 major counterparts. Oil retreated 0.1 percent, extending yesterday’s 1.1 percent slump.
“There is some relief from the fall in oil prices,” said Sim Moh Siong, a currency strategist at Bank of Singapore Ltd. “The market is expecting a further boost from the liquidity injection from the European Central Bank.”
The European Central Bank is preparing to issue a second round of unlimited three-year loans tomorrow to help shore up the region’s banks, while policy makers in China and India have cut reserve requirements for lenders this year to support economic growth. Asian stocks declined earlier after Elpida Memory Inc., a Japanese chipmaker, filed the nation’s biggest bankruptcy in two years.
About three stocks rose for each that fell in the MSCI Asia gauge. Hong Kong’s Hang Seng Index climbed 1.3 percent, South Korea’s Kospi Index gained 0.6 percent and the Topix Index of Japanese shares added 0.4 percent.
Indian Stocks
Tata Motors Ltd., India’s largest truckmaker, rose 5.2 percent. Hero MotoCorp Ltd., the country’s biggest motorcycle maker, gained 2.2 percent. India’s central bank last month cut reserve requirements for the first time since 2009.
“A high oil price would be a negative for India in the long term, but as long as it doesn’t exceed $130, it shouldn’t have too significant an impact on the budget deficit and inflation numbers,” said Khiem Do, the Hong Kong-based head of multi-asset strategy at Baring Asset Management Ltd., which oversees $46 billion.
Indonesia’s rupiah snapped a five-day slide, gaining 0.2 percent to 9,143. South Korea’s won rose 0.4 percent to 1,124.43.
Elpida shares sank 24 percent. The company’s 0.5 percent convertible notes due in October 2015 plunged 40 yen to 18 per 100 face value, according to Citigroup Inc. prices. Shares of chipmakers in South Korea advanced. Samsung Electronics Co., the world’s biggest computer-memory maker, added 1.2 percent. Hynix Semiconductor Inc. (000660) jumped 6.8 percent.
China’s Banks
Chinese lenders gained in Hong Kong after the China Securities Journal reported regulators had allowed banks to continue lending to local governments for some projects. Bank of Communications Co. and Industrial and Commercial Bank of China Ltd. rose at least 2.3 percent.
“There’s a likelihood of further monetary easing in China,” said Cedric Ma, Hong Kong-based senior investment strategist at Convoy Asset Management Ltd., which oversees about $200 million. “The market still has some legs as long as there isn’t a blowout in Europe.”
Ten-year Treasury yields rose one basis point to 1.93 percent. U.S. government debt has handed investors a 0.5 percent loss in February as of yesterday, according to Bank of America Merrill Lynch data, while the S&P 500 returned 4.4 percent. U.S. economic data today may show orders for durable goods fell in January, while consumer confidence improved this month.
Gold for immediate delivery climbed for the first time in three days, advancing 0.4 percent to $1,773.77 an ounce. The S&P GSCI gauge of 24 commodities fell for a second day, losing 0.1 percent as sugar and natural gas declined.
To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
