Thursday, 19 January 2012

Asian Stocks, Copper Gain as China May Boost Lending; Oil Jumps

Good Summary so thought it needed to be posed !!, Enjoy

"Jan. 19 (Bloomberg) -- Asian stocks rose, spurring a record start to the year for the MSCI Asia Pacific Index, while copper gained and South Korea’s won strengthened amid signs China will relax credit controls. Oil advanced after U.S. crude stockpiles fell the most in six weeks.

The MSCI gauge rallied 1 percent as of 12:06 p.m. in Tokyo, poised for the highest close since Nov. 9. The Hang Seng China Enterprises Index jumped 1.8 percent, while Standard & Poor’s 500 futures were little changed. Oil gained 0.8 percent to $101.44 a barrel. Copper added 1.3 percent to lead gains in base metals. South Korea’s won rose against all of its 16 major counterparts. Bond risk in Australia fell to a two-month low.

China is letting its five biggest banks boost lending and weighing a plan to relax capital requirements, according to people with knowledge of the matter, who declined to be identified. The world’s second-biggest economy expanded 8.9 percent in the fourth quarter, the slowest in two years, and banks’ reserve requirements were relaxed in December for the first time since 2008.

"The government’s major task will be maintaining stable economic growth this year," said Zhang Ling, general manager at Shanghai River Fund Management Co. in Shanghai. "We should be seeing more pro-growth measures going forward and easing restrictions on lending is a good start."

Technology Stocks

Technology stocks rallied the most among 10 industries in the MSCI Asia Pacific Index with a 1.5 percent advance. ASML Holding NV, Europe’s biggest semiconductor-equipment maker, forecast higher first-quarter orders and sales at Linear Technology Corp., a U.S. chipmaker, beat analysts’ projections.

Sumco Corp., which produces silicon wafers, surged 9.2 percent in Japan trading. Elpida Memory Inc. and Advantest Corp. climbed at least 3.7 percent.

About three stocks rose for each that fell in the MSCI Asia gauge, which has advanced 4.9 percent in 2012, the best start to any year in Bloomberg data going back to 1988. Hero Motocorp Ltd., India’s largest two-wheeler manufacturer, Bajaj Auto Ltd. and Hang Lung Properties Ltd. are among companies in the region scheduled to report earnings today.

The Shanghai Composite Index added 0.8 percent. Chinese banks can increase new loans this quarter by a maximum of about 5 percent from a year earlier, according to two people at state lenders who have knowledge of the matter.

Copper, Oil

Copper in London gained as much as 1.6 percent to $8,372 a metric ton, the highest level since Sept. 21, on the London Metal Exchange. Zinc advanced 0.6 percent to $2,013 a ton and nickel rose 0.8 percent to $19,650.

Oil futures advanced 1 percent. U.S. crude inventories dropped 4.81 million barrels last week, the most since the week ended Dec. 2, figures from the industry-funded American Petroleum Institute showed.

The cost of protecting Australian bonds against non-payment fell, according to credit-default swap traders. The Markit iTraxx Australia index declined four basis points to 169, Royal Bank of Scotland Group Plc prices show. The gauge is on track for its lowest close since Oct. 31, 2011, according to data provider CMA.

To contact the reporter on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net

To contact the editor responsible for this story: James Regan in Hong Kong at jregan19@bloomberg.net . "
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Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za

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