Asian stocks rise on higher growth, Kiwi strengthens, Won falls
Friday, 11 June 2010
TOKYO, June 10 (Bloomberg): Asian stocks rose, led by energy producers, and Standard & Poor's 500 index futures gained after economic reports from the US to Japan to Australia showed accelerating growth. The New Zealand dollar advanced after the central bank raised interest rates and the Korean won fell.
The MSCI Asia Pacific Index climbed 1 per cent to 110.91 as of 4 pm in Tokyo, boosted by a 1.1 per cent rally in the S&P/ASX 200 Index and the Nikkei 225 Stock Average. The Stoxx Euro 600 decreased 0.4 per cent.
Futures for the Standard & Poor's 500 index gained 0.6 per cent. The euro appreciated versus the dollar and yen, and the New Zealand dollar strengthened against all 16 of its most-traded counterparts.
Japan's economy grew at an annualised 5 per cent rate in the three months ended March and Australian employers added workers for a third straight month. The Federal Reserve's Beige Book survey said the US economy expanded in all its 12 districts for the first time in more than two years at a "modest" pace.
Market gains were limited as faster growth may prompt China to raise loan rates and New Zealand said inflation is a concern.
"Macro data has been good and the signs of a modest recovery are on track," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which holds $90 billion. "Macro economic data hasn't really suffered. Volatility has been settling down a bit compared to what it was."
The S&P/ASX 200 Index climbed to a one-week high after Australia's jobless rate fell to 5.2 per cent from 5.4 per cent. The number of people employed gained 26,900 from April, the statistics bureau said.
The median estimate of 23 economists surveyed was for an increase of 20,000.
BHP Billiton Ltd, the nation's largest oil producer, rose 1.4 per cent. Commonwealth Bank of Australia, the biggest lender, increased 1.3 per cent in Sydney.
The Nikkei 225 climbed the most in a week as more exports and an upward revision to consumer spending boosted the estimate for first-quarter economic growth. Nitori Co gained 4.4 per cent after a report the furniture retailer will more than double its sales outlets. Inpex Corp, the nation's largest oil and gas explorer, climbed 3.9 per cent.
New Zealand's dollar climbed after central bank Governor Alan Bollard raised the benchmark interest rate to 2.75 per cent, the first increase in three years as the nation's economy recovers from recession.
He also said borrowing costs were raised as "underlying inflationary pressures are expected to increase."
The euro gained as better economic data in the Asia-Pacific region boosted demand for higher-yielding currencies. Europe's common currency climbed to $1.2031 in London from $1.1979 in New York yesterday and rose 0.4 per cent to 109.55 yen.
South Korea's won slumped 0.2 per cent to 1,251.05 per dollar after Vice Finance Minister Yim Jong Yong said the government will "soon" announce plans to reduce volatility in capital flows.
The Maeil Business Newspaper said today the regulations will limit banks' currency-forward transactions, raising concern they may reduce foreign-exchange borrowings used to hedge such trades and take the proceeds out of the country.
The MSCI Asia Pacific Index climbed 1 per cent to 110.91 as of 4 pm in Tokyo, boosted by a 1.1 per cent rally in the S&P/ASX 200 Index and the Nikkei 225 Stock Average. The Stoxx Euro 600 decreased 0.4 per cent.
Futures for the Standard & Poor's 500 index gained 0.6 per cent. The euro appreciated versus the dollar and yen, and the New Zealand dollar strengthened against all 16 of its most-traded counterparts.
Japan's economy grew at an annualised 5 per cent rate in the three months ended March and Australian employers added workers for a third straight month. The Federal Reserve's Beige Book survey said the US economy expanded in all its 12 districts for the first time in more than two years at a "modest" pace.
Market gains were limited as faster growth may prompt China to raise loan rates and New Zealand said inflation is a concern.
"Macro data has been good and the signs of a modest recovery are on track," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which holds $90 billion. "Macro economic data hasn't really suffered. Volatility has been settling down a bit compared to what it was."
The S&P/ASX 200 Index climbed to a one-week high after Australia's jobless rate fell to 5.2 per cent from 5.4 per cent. The number of people employed gained 26,900 from April, the statistics bureau said.
The median estimate of 23 economists surveyed was for an increase of 20,000.
BHP Billiton Ltd, the nation's largest oil producer, rose 1.4 per cent. Commonwealth Bank of Australia, the biggest lender, increased 1.3 per cent in Sydney.
The Nikkei 225 climbed the most in a week as more exports and an upward revision to consumer spending boosted the estimate for first-quarter economic growth. Nitori Co gained 4.4 per cent after a report the furniture retailer will more than double its sales outlets. Inpex Corp, the nation's largest oil and gas explorer, climbed 3.9 per cent.
New Zealand's dollar climbed after central bank Governor Alan Bollard raised the benchmark interest rate to 2.75 per cent, the first increase in three years as the nation's economy recovers from recession.
He also said borrowing costs were raised as "underlying inflationary pressures are expected to increase."
The euro gained as better economic data in the Asia-Pacific region boosted demand for higher-yielding currencies. Europe's common currency climbed to $1.2031 in London from $1.1979 in New York yesterday and rose 0.4 per cent to 109.55 yen.
South Korea's won slumped 0.2 per cent to 1,251.05 per dollar after Vice Finance Minister Yim Jong Yong said the government will "soon" announce plans to reduce volatility in capital flows.
The Maeil Business Newspaper said today the regulations will limit banks' currency-forward transactions, raising concern they may reduce foreign-exchange borrowings used to hedge such trades and take the proceeds out of the country.