Japan Post units surge on debut after 2015's biggest IPO Industrial metals advance as some stabilization in China seen Share on Facebook Share on Twitter European equities advanced, following gauges of Asian shares higher after a rally in Chinese shares and a first-day surge for Japan Post’s units. The euro weakened for a second day. The Stoxx Europe 600 index climbed for a third day, while the MSCI Asia Pacific Index advanced as mainland Chinese stocks surged the most in seven weeks. Volkswagen AG retreated as its emissions scandal deepened. Japan Post’s insurance unit jumped 56 percent, while its bank and holding company also soared in the biggest initial offering of the year. The euro fell for a second day and the Australian dollar extended gains after the central bank held rates Tuesday. Copper and nickel climbed. “We’re certainly seeing good support for risk assets,� Michael McCarthy, chief market strategist in Sydney at CMC Markets, said by phone. “We still have some uncertainties over when U.S. interests rates will start to climb but it seems the clouds of pessimism around China’s economy are starting to clear. There’s been demonstrated commitment from authorities in China to underpin the economy.� With further monetary stimulus and financial-market reform in China assuaging some concerns over the outlook for the world’s second-biggest economy, investors are refocusing on the trajectory of U.S. growth. Federal Reserve Chair Janet Yellen addresses Congress Wednesday with employment reports this week seen as key indicators for the timing of any interest-rate increase. Australian and Japanese policy makers decided against further easings at recent meetings, while European Central Bank chief Mario Draghi said officials will reexamine next month whether enough support is being provided. Stocks The Stoxx 600 climbed 0.6 percent by 8:17 a.m. in London, with 18 of the 19 industry groups advancing. Volkswagen dropped as much as 11 percent in early trading after the company said it found faulty emissions readings for the first time in gasoline-powered vehicles, widening a scandal that so far had centered on diesel engines. The MSCI Asia Pacific Index climbed 1.2 percent, headed for its biggest daily gain since Oct. 23. The Topix rose 0.9 percent, clawing back some of Monday’s losses, while the Hang Seng China Enterprises Index surged as much as 4 percent. Shares of Japan Post Bank Co. jumped 15 percent and Japan Post Holdings Co. climbed 26 percent. The Japanese government raised 1.44 trillion yen ($12 billion) from the three-pronged IPO, which was oversubscribed within days of going on sale last month. The offering was part of Prime Minister Shinzo Abe’s efforts to convince Japanese to put more of their savings into investments. The Shanghai Composite Index rose 4.3 percent, the biggest advance since Sept. 16. Taiwan’s Taiex index increased 1.7 percent. The leaders of China and Taiwan plan to meet this weekend for the first time since a civil war around 70 years ago. China’s official Xinhua News Agency confirmed the meeting, saying the two would meet as “leaders� and exchange opinions on promoting the peaceful development of relations. Hong Kong’s gauge of Chinese shares closed 2.7 percent higher, with 36 of 40 stocks advancing. The Hang Seng Index added 2.2 percent. Hong Kong Exchanges & Clearing Ltd. surged as much as 9.1 percent to surpass CME Group Inc. as the world’s biggest exchange company by market value. That gain was cut to 4.7 percent after China’s central bank clarified that comments attributed to Governor Zhou Xiaochuan saying a link between Hong Kong and Shenzhen will start this year were five months old. The comments from Zhou were published in a lengthy article dated Tuesday on the need for Communist Party discipline that appeared on the PBOC’s website without any indication that the statements were old. The central bank later confirmed in a text message the comments on the Hong Kong-Shenzhen trading link were taken from a speech on May 27. Hong Kong’s bourse said in a midday statement that the program is still subject to regulatory approval. S&P 500 Index futures were flat following a 0.3 percent advance in the U.S. benchmark that put it less than 1 percent below its record high. Nasdaq 100 Index futures were also little changed after the technology-heavy equity gauge jumped to an all-time high Tuesday. Currencies The euro slipped 0.4 percent to $1.0925 after snapping a three-day climb on Tuesday. Draghi said ECB officials are “willing and able� to address any weakness in the euro-area economy by using all the instruments available within their mandate. Declines in oil prices are making it harder for the bank, which next meets Dec. 3, to meet its inflation target. Stan Druckenmiller, who helped George Soros make $1 billion shorting the British pound in 1992, said he’s betting against the euro again as the U.S. prepares to raise rates and the ECB contemplates further stimulus. Draghi has “pretty much pre-announced step two,� signaling either a further cut in the discount rate, more quantitative easing or both, he said Tuesday at the New York Times DealBook Conference, while “heavy breathing� at the Fed points toward a potential interest rate increase. The Australian dollar gained 0.3 percent to 72.08 U.S. cents. The Reserve Bank of Australia left the benchmark at a record-low 2 percent on Tuesday, asserting economic prospects “had firmed� in recent months even as the inflation outlook allowed room for further rate reductions. Malaysia’s ringgit appreciated 0.5 percent to trade at a one-week high. The currency of Southeast Asia’s only major net petroleum exporter rose a third day after the 3.8 percent surge in oil prices Tuesday. South Korea’s won climbed 0.4 percent. The Thai baht rose 0.3 percent as the central bank kept key rates on hold Wednesday. Commodities The Bloomberg Commodity Index advanced 0.2 percent after a 1 percent jump Tuesday. Gold for immediate delivery added 0.1 percent to $1,119.40. Copper for three-month delivery in London climbed 1.3 percent, while nickel jumped 1.4 percent. U.S. oil slipped 0.3 percent after surging Tuesday. (An erroneous spelling on ringgit was corrected in a previous version of this story.)

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