Asian stocks advanced, extending last week’s rally, as consumer companies led gains after higher-than- expected U.S. jobs growth. The euro weakened against most of its 16 major peers as Greek leaders worked on a funding agreement.
The MSCI Asia Pacific Index (MXAP) climbed 0.6 percent as of 11:38 a.m. in Tokyo. Standard & Poor’s 500 Index futures slid 0.3 percent following a 1.5 percent rally in the equity gauge on Feb. 3. The euro retreated 0.5 percent against the U.S. currency and the Australian and New Zealand dollars declined. Oil lost 0.6 percent, while rubber rose the most in two weeks. Bond risk in Australia dropped to a six-month low.
Greek Prime Minister Lucas Papademos struck a tentative deal with party leaders to extend spending cuts after euro-area finance chiefs told them an increase in the 130 billion-euro ($170 billion) aid package wasn’t forthcoming. Greece’s leaders will meet today to complete an accord as international creditors imposed an 11 a.m. deadline in Athens for a final deal.
“The movement in euro is directly related to the concerns in the market that Greece may not get an agreement,” said Emma Lawson, a currency strategist at National Australia Bank Ltd. in Sydney. “There is some hesitation in the currency market” before today’s response.
Bond Auction
France plans to sell as much as 8.5 billion euros ($11 billion) of bills today and data may show Indonesia’s economic growth exceeded 6 percent for a fifth quarter, based on a survey of economists’ forecasts compiled by Bloomberg. Japan Tobacco Inc., SK Holdings Co. and Nippon Telegraph & Telephone Corp. are among Asian companies scheduled to release earnings today.The MSCI Asia gauge rallied 1.1 percent last week, capping seven weeks of gains. Two stocks advanced for each that declined today. Japan’s Nikkei 225 Stock Average jumped 1 percent and Hong Kong’s Hang Seng Index added 0.6 percent.
The S&P 500 closed at a six-month high on Feb. 3 after data showed U.S. employers added 243,000 jobs last month, the most since April. The unemployment rate dropped to 8.3 percent, the lowest since February 2009. Treasury 10-year yields were little changed at 1.92 percent today.
Panasonic Corp., the world’s largest maker of plasma televisions, jumped 6.5 percent after saying profit may recover after a record loss. Nikon Corp. (7731) surged 10 percent. The world’s second-biggest maker of professional-grade cameras raised its profit forecast on higher-than-expected sales.
Australia’s dollar weakened 0.5 percent to $1.0725 after a government report showed retail spending unexpectedly declined, adding to the case for the Reserve Bank to lower interest rates tomorrow. New Zealand’s dollar fell 0.6 percent to 83.18 cents.
Australia CDS
The cost of protecting Australian bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Australia index declined eight basis points to 141 basis points, according to National Australia Bank. The gauge is set for its lowest close since Aug. 5, according to data provider CMA.Crude for March delivery fell to $97.25 a barrel in electronic trading on the New York Mercantile Exchange. Rubber rose 2.9 percent to 323.8 yen a kilogram, poised for the biggest advance since Jan. 20. Gold added 0.4 percent to $1,733.82 an ounce, rallying from its largest decline in more than five weeks.
Speculators have raised bullish bets on commodities to a 12-week high on signs that global growth will boost demand. Money managers expanded their combined net-long position across 18 U.S. futures and options by 11 percent to 823,917 contracts in the week ended Jan. 31, Commodity Futures Trading Commission data show.
“In the second half of last year, talk was all about whether the U.S. will go back into a recession,” said Andrew Pease, Sydney-based chief investment strategist for the Asia- Pacific region at Russell Investment Group, which manages about $150 billion. “Now I think talk will be about what will be the strength of the recovery in the U.S. That’s an important shift in the balance of risk.”
