Aug. 6 (Bloomberg) --
"Asian stocks rose for the first time in four days, while the euro gained and debt insurance costs fell, after creditors said Greece is making progress on meeting bailout terms and U.S. payrolls climbed more than forecast.
The MSCI Asia Pacific Index added 1.6 percent as of 12:28 p.m. in Tokyo. The Nikkei 225 Stock Average rose 1.7 percent after companies led by Toyota Motor Corp. beat earnings estimates. Standard & Poor’s 500 Index futures were little changed after the gauge last week rose to its highest level since May. The euro gained against most of its peers, with the dollar declining to the lowest in a month against the shared currency. The cost of insuring Asian bonds against default fell to the lowest level since April.
Greece and its creditors agreed on the need for more budget cuts to comply with bailout terms after more than a week of meetings in Athens. The U.S. economy added twice as many jobs in July as the previous month, boosted by automakers. Toyota’s first-quarter profit rose to a four-year high as Japan’s biggest company rebounded from last year’s natural disaster.
“U.S. economic momentum has a pulse,” said George Boubouras, Melbourne-based head of investment strategy at UBS AG’s Australian wealth management unit. The Swiss bank oversees $1.5 trillion. “Despite no central bank action last week, it looks clear that both the Federal Reserve and the ECB will act and they have adjusted their language to be able to intervene.”
Asian Stocks
Almost 10 stocks rose for each that fell on the MSCI Asia- Pacific Index, which dropped for three days last week as the Federal Reserve refrained from adding fresh stimulus and the European Central Bank declined to intervene in bond markets. The benchmark traded at 12.2 times estimated earnings, compared with 13.5 times for the S&P 500 Index and 11.4 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
The Nikkei 225 advanced today the most since June. Toyota gained as much as 4.1 percent after the automaker’s profit climbed to 290.3 billion yen ($3.7 billion) in the three months ended June 30, 14 percent higher than analysts estimated. Deliveries almost doubled last quarter in Japan, led by the Prius hybrid, as government subsidies helped spur demand.
Hon Hai Precision Industry Co. jumped 6.6 percent in Taipei after saying it will renegotiate the price of its planned stake in Sharp Corp., which last week forecast widening losses. Foxconn Technology Co., a Hon Hai affiliate also planning to invest in the Japanese display maker, climbed 6.5 percent.
Euro Gains
The euro strengthened against 11 of its 16 peers after the so-called troika of the European Commission, European Central Bank and International Monetary Fund said discussions on Greece’s efforts to meet bailout targets were “productive.” Inspectors from the country’s creditors will return to Athens in early September to continue talks, according to the troika.
The Dollar Index dropped as much as 0.3 percent to 82.080, the lowest since July 4, before Federal Reserve Chairman Ben S. Bernanke speaks today on economic measurement at a conference in Cambridge, Massachusetts. The trade deficit in the U.S. probably shrank in June as cheaper oil reduced the import bill and slower global growth led to reduced demand for American-made goods, economists said before a report this week.
The cost of insuring the region’s corporate and sovereign bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan fell 4 basis points to 154, Credit Agricole SA prices show. The index is poised for its lowest close since April 3, according to data provider CMA. "
To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net ; Adam Haigh in Sydney at ahaigh1@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
No comments:
Post a Comment