Living in Interesting times !!
Tread slowly !!
REF : Bloomberg
"March 15 (Bloomberg) -- The dollar rose to an 11-month high against the yen and Treasuries fell for a seventh day before data that may show U.S. manufacturing expanded and fewer Americans filed for unemployment benefits. Asian bonds dropped, while mining shares and copper prices retreated.
The dollar climbed 0.3 percent to 84.01 yen as of 11:33 a.m. in Tokyo. Treasury five-year notes had the longest losing streak in almost a year, spurring declines in government bonds in Japan and South Korea. The MSCI Asia Pacific Index slipped 0.3 percent and Standard & Poor’s 500 Index futures were little changed. Copper fell 0.4 percent.
“The U.S. economy is undoubtedly getting better,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $71 billion in Tokyo. “The bond market is likely to remain weak.”
The world’s largest economy may expand 2.2 percent in 2012, accelerating from 1.7 percent last year, according to economists surveyed by Bloomberg News. By contrast, Premier Wen Jiabao is targeting slower growth for China’s economy and said yesterday that the relaxation of curbs on the property market would lead to “chaos.”
Yen Weakens
The greenback was near the highest level in four weeks against the euro amid reduced bets the Federal Reserve will begin a third round of bond purchases, or quantitative easing, which could debase the currency. The yen declined against most its major counterparts.
The Nikkei 225 Stock Average advanced 0.3 percent, poised to close at the highest level since July, on speculation a weaker yen will boost earnings of exporters. Toyota Motor Corp. and Honda Motor Co., Japan’s largest automakers, rose at least 1.5 percent. Sharp Corp. slid 3.4 percent after forecasting a record annual loss. The Shanghai Composite Index gained 0.2 percent. South Korea’s Kospi Index slipped 0.2 percent.
The Dow Jones Industrial Average has risen for the past six days, its longest rally in more than a year. The Federal Reserve Bank of New York’s general economic index probably slid to 17.5 this month from 19.5 in February, according to a Bloomberg survey of economists. Readings greater than zero signal expansion in the so-called Empire State Index. A gauge of manufacturing in the Philadelphia region may have increased to 12 in March, the highest since April.
Jobless Claims
Data later today may also show the number of Americans applying for jobless benefits fell by 5,000 to 357,000 in the week ended March 10, projections show. Unemployment in the U.S. will “decline gradually” and the inflation outlook is “subdued,” the Fed said in a statement on March 13.
“Should U.S. economic data continue to come in firm, it will support the market’s view that the Fed doesn’t need” further monetary easing, said Junichi Ishikawa, an analyst in Tokyo at IG Markets Securities Ltd.
Five-year Treasury yields added three basis points to 1.13 percent, the highest since October. South Korea’s bonds fell for a second day as the slump in Treasuries narrowed their interest- rate advantage. The yield on 2017 bonds climbed four basis points to 3.66 percent. Japan’s similar rate rose three basis points to 34.5 basis points.
Asia Default Swaps
The cost of insuring bonds against non-payment dropped in Asia, according to credit-default swap traders. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan declined two basis points, Royal Bank of Scotland Group Plc prices show. That puts it on track for its lowest close since Aug. 17, according to data provider CMA.
Copper in London dropped 0.3 percent to $8,438, falling for the second day. Nickel declined 1.1 percent. Australia’s S&P/ASX 200 Index slipped 0.5 percent. Newcrest Mining Ltd., Australia’s largest gold mining company, fell 4.1 percent. BHP Billiton Ltd., the world’s biggest mining company, lost 2 percent. "
To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net ; Monami Yui in Tokyo at myui1@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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