Aug. 21 (Bloomberg) --
Asian stocks rose to a three-month high, while the euro and Australian dollar climbed, on speculation data will show the U.S. economy is improving and Europe can make progress at meetings on Greece’s debt crisis.
The MSCI Asia Pacific was up 0.5 percent at 1:01 p.m. in Tokyo, set for its highest close since May 8, as Taiwan’s Taiex Index rose 1 percent. The euro strengthened 0.1 percent at $1.2354, South Korea’s won and the Aussie each gained 0.3 percent. Soybeans in Chicago reached a record $17.0125 a bushel. Standard & Poor’s 500 Index futures were little changed.
“The odds have increased that the Europeans will craft some kind of devil’s bargain,” Michael Shaoul, chairman of Marketfield Asset Management, which oversees about $2.7 billion in New York, said in a Bloomberg Television interview. “At the same time that that’s going on, U.S. economic data’s been a lot better.”
Luxembourg Prime Minister Jean-Claude Juncker, the head of the euro group of finance ministers, visits Greece tomorrow. German Chancellor Angela Merkel and French President Francois Hollande meet in Berlin on Aug. 23 and both are set to talk separately with Greece’s Prime Minister Antonis Samaras later in the week. International creditors may adjust the interest on Greek bailout loans, Norbert Barthle, a senior lawmaker of German Chancellor Angela Merkel’s party, was quoted as saying by the Passauer Neue Presse.
In the U.S., combined purchases of new and existing houses increased to a 4.89 million annual rate in July from a 4.72 million pace in June, and durable goods orders may have climbed the most this year, according to economist estimates before reports this week.
Apple Record
“U.S. economic data has been better, with the housing sector turning around,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion in assets. “Eventually, Asian exports will rebound.”
About five stocks rose for every three that fell on the MSCI Asia Pacific Index. Hon Hai Precision Manufacturing Industry Co. gained 1.9 percent and Foxconn Technology Co. added 3.1 percent in Taiwan. Both companies are assemblers for Apple Inc., which set a U.S. record for market value yesterday on optimism the next version of the iPhone will meet high demand. Rival Samsung Electronics Co. climbed 2.8 percent even as the chief executives of both companies weren’t able to resolve a patent dispute after talks.
China Stocks
China’s CSI 300 Index gained 0.9 percent on the outlook for more stimulus. China may issue new policies to boost consumption this year, the Economic Information Daily reported today, citing an unidentified person. Port operator Chongqing Ganjiu Co. jumped 10 percent as Xinhua News Agency reported Chongqing municipality will boost industrial investment to 1.5 trillion yuan in the five years through 2015.
The six-month interest-rate swap fell five basis points to 3.25 percent as the central bank injected record funds into the financial system. The People’s Bank of China conducted 220 billion yuan ($34.6 billion) of reverse-repurchase operations today, the most in a single day, according to a trader at a primary dealer required to bid at the auctions.
The so-called Aussie was at $1.0477. Australia’s resource- driven domestic economic growth overshadowed a “fragile” global outlook in the Reserve Bank’s decision to hold interest rates unchanged for a second month, minutes of its Aug. 7 policy meeting released today showed.
The won rose 0.3 percent to 1,132.60 per dollar, climbing for the first time in a week, as overseas investors boosted their holdings of South Korean stocks for an 11th day. Taiwan’s dollar gained 0.2 percent to NT$29.963 per dollar, driven by $2.6 billion of net inflows into equities this month.
Foreign Interest
“Foreign investors’ interest in Asian stocks has revived recently,” said Samson Tu, a Taipei-based fund manager at Uni- President Assets Management Corp., who helps manage $1.6 billion of fixed-income assets. “The lack of negative news from the U.S. or Europe is also supporting the Taiwan dollar.”
Soybeans for November delivery were up 0.9 percent at $16.99 on speculation that higher prices are yet to curb demand. Futures have climbed 18 percent since the end of June as the worst drought in half a century parched crops in the U.S., the world’s largest grower in 2011/2012.
Bond risk fell. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan dropped one basis point to 145.5 in Hong Kong, Royal Bank of Scotland Group Plc prices show. The index is set for its lowest close since March 19, according to CMA.
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net ; Susan Li in Hong Kong at sli31@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
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