Asian stocks hit 17-month high on China export surge
Tuesday, 12 January 2010
HONG KONG, Jan 11 (Reuters): Asian stocks hit a 17-month high Monday as a strong rebound in China's exports raised investor optimism about Asia's economies while the dollar suffered its biggest loss in six weeks after poor US jobs data.
European shares were expected to gain, financial spreadbetters said, as the dollar's weakness pushed the euro to a three-week high. US stock futures were up 0.4 per cent.
China's exports and imports last month blew past expectations, with exports surging 17.7 per cent from a year earlier to break 13 months of declines. The trade data, released Sunday, triggered a shift into Asian assets as investors shrugged off Friday's disappointing US non-farm payrolls data.
Gold pushed up to a five-week high at $1,157.65 an ounce at one point as the data showed a sharp rise in China's commodities imports and sent the Australian dollar to a 26-month peak against the euro.
Chia-Liang Lian, a senior vice president at bond fund PIMCO, said Asia's fundamentals made it highly attractive.
"We have seen how Asia has navigated successfully through a tough year with a score card that is nothing short of spectacular," Lian told newsmen in an interview.
The MSCI index of Asia Pacific stocks traded outside Japan hit its highest level since July 2008, gaining 1.2 per cent. The index of Asian shares was 0.8 per cent higher.
Japanese financial markets were closed for a public holiday.
Australia's leading share index climbed 0.8 per cent to a 15-month high as the China data lifted resource companies that benefit from Chinese demand.
"People are gradually getting more comfortable with the recovery story. You have seen some reasonably good data out of China, and there have been no disasters, no more Dubais," said Greg Goodsell, equity strategist at RBS Australia.
The Australian dollar soared to its highest in more than two years against the euro and to a five-week high against the dollar.
Resource-related shares gained in Hong Kong, including Aluminum Corp of China (Chalco), the country's top aluminum company, which surged five per cent, and Jiangxi Copper, China's top metals producer, which rose more than three per cent.
Chinese brokerage shares gained in Shanghai after news late last week that Beijing had decided to allow stock index futures and margin trading.
China's export rebound fueled expectations China could soon let the yuan start rising again and helped push Asian currencies higher as a stronger yuan would benefit pricing for fellow Asian exporters.
The high-yielding Indonesian rupiah jumped one per cent to 9,120 to the dollar, despite suspected intervention by the central bank. It has gained 3.3 per cent so far this year as investors have sought out higher-yielding assets.
South Korean authorities were also seen intervening to curb the won which touched a 15-month high of 1,117.5 to the dollar.
European shares were expected to gain, financial spreadbetters said, as the dollar's weakness pushed the euro to a three-week high. US stock futures were up 0.4 per cent.
China's exports and imports last month blew past expectations, with exports surging 17.7 per cent from a year earlier to break 13 months of declines. The trade data, released Sunday, triggered a shift into Asian assets as investors shrugged off Friday's disappointing US non-farm payrolls data.
Gold pushed up to a five-week high at $1,157.65 an ounce at one point as the data showed a sharp rise in China's commodities imports and sent the Australian dollar to a 26-month peak against the euro.
Chia-Liang Lian, a senior vice president at bond fund PIMCO, said Asia's fundamentals made it highly attractive.
"We have seen how Asia has navigated successfully through a tough year with a score card that is nothing short of spectacular," Lian told newsmen in an interview.
The MSCI index of Asia Pacific stocks traded outside Japan hit its highest level since July 2008, gaining 1.2 per cent. The index of Asian shares was 0.8 per cent higher.
Japanese financial markets were closed for a public holiday.
Australia's leading share index climbed 0.8 per cent to a 15-month high as the China data lifted resource companies that benefit from Chinese demand.
"People are gradually getting more comfortable with the recovery story. You have seen some reasonably good data out of China, and there have been no disasters, no more Dubais," said Greg Goodsell, equity strategist at RBS Australia.
The Australian dollar soared to its highest in more than two years against the euro and to a five-week high against the dollar.
Resource-related shares gained in Hong Kong, including Aluminum Corp of China (Chalco), the country's top aluminum company, which surged five per cent, and Jiangxi Copper, China's top metals producer, which rose more than three per cent.
Chinese brokerage shares gained in Shanghai after news late last week that Beijing had decided to allow stock index futures and margin trading.
China's export rebound fueled expectations China could soon let the yuan start rising again and helped push Asian currencies higher as a stronger yuan would benefit pricing for fellow Asian exporters.
The high-yielding Indonesian rupiah jumped one per cent to 9,120 to the dollar, despite suspected intervention by the central bank. It has gained 3.3 per cent so far this year as investors have sought out higher-yielding assets.
South Korean authorities were also seen intervening to curb the won which touched a 15-month high of 1,117.5 to the dollar.