Asia shares jump after China move, euro firm
SINGAPORE, Oct 11 (Reuters) - Asian shares jumped after China moved to support its stock market by buying shares of major banks, and the euro held the previous session's big gains on hopes that European leaders are finally taking action to protect the continent's lenders.
"I think it is significant that Germany and France came together to show they will not allow big banks to collapse," said Takashi Hiroki, chief strategist at Monex Securities in Tokyo.
European Stocks Decline Before Slovakia Vote (Bloomberg)
European stocks fell as investors awaited a vote in Slovakia on the euro-area bailout fund and the start of the American earnings season. Asian shares advanced while U.S. index futures declined. Antofagasta Plc (ANTO), the copper miner controlled by Chile’s Luksic family, slid 2.6 percent as the base retreated for the first time in five days in London amid muted buying in the Chinese physical market. Porsche SE led automakers lower. The benchmark Stoxx Europe 600 Index lost 0.5 percent to 234.78 at 8:15 a.m. in London. The gauge advanced 1.7 percent yesterday to complete its biggest four-day rally since November 2008 as the leaders of Germany and France gave themselves three weeks to create a plan to recapitalize banks. The measure is 19 percent off this year’s peak on Feb. 17. The MSCI Asia Pacific Index rose 1.8 percent today for the biggest four-day rally since March 2009. Standard & Poor’s 500 Index futures declined 0.3 percent.
Hong Kong Stocks Climb as China Buying Bank Shares Spurs Surge for Lenders (Bloomberg)
Hong Kong’s Hang Seng Index (HSI) rose toward its highest close in almost three weeks led by financial companies after China’s investment arm said it began buying shares in the nation’s four biggest banks. Industrial & Commercial Bank of China (601398) Ltd., the world’s biggest lender by market value, surged 7.7 percent. Jiangxi Copper Co., China’s No. 1 producer of the metal, gained 5.6 percent after commodity prices rose. Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, jumped 12 percent amid growing confidence that euro-area leaders will act to stem the region’s debt crisis. The Hang Seng Index increased 3.1 percent to 18,255.61 as of 1:34 p.m. local time, headed for its highest close since Sept. 21. All but seven stocks gained on the 46-member gauge. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong advanced 5.2 percent to 9,327.86.
FOREX-Euro holds onto Monday's huge gains on EU optimism (Bloomberg)
SINGAPORE, Oct 11 (Reuters) - The euro on Tuesday clung to nearly all of the previous day's huge gains after hopes for a new EU debt plan sparked a correction in a deeply bearish market, though sentiment remains fragile as European leaders have disappointed many times before.
The euro, which on Monday surged 2 percent for its biggest daily percentage gain in 15 months, dipped 0.1 percent to $1.3629 in early Asia trade.
US soy near one-week top; corn, wheat rise on EU hopes
SINGAPORE, Oct 11 (Reuters) - U.S. soy gained more ground, rising almost 1 percent, while corn and wheat firmed for a second straight day as a pledge by European leaders continued to shore up hopes for the resolution of the euro zone debt crisis.
"A part of the action has to do with a correction because the slide in September was quite aggressive and it's a bit of a risk appetite in the market," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.
Vietnam Coffee-Oct loading seen low, more rain ahead
HANOI, Oct 11 (Reuters) - Coffee exports from Vietnam this month could fall to between 40,000 tonnes and 50,000 tonnes, or 670,000 to 833,000 bags, from 57,300 tonnes loaded in the same month last year, traders said on Tuesday.
The October export volume is an indicator of the size of Vietnam's previous 2010/2011 crop, which traders have estimated at up to 22 million bags, as harvesting has been delayed by rain in the Central Highlands coffee belt.
Brazil soy planting spreads with early rains
SAO PAULO, Oct 10 (Reuters) - Planting has gained early traction across the grain belt in Brazil, the world's No. 2 soybean grower, after weekend rains marked the end of the dry season, crop analysts said on Monday.
The return of disruptive La Nina weather conditions looms, however, which could spell drier weather over Brazil's southern grain growing states, keeping Brazil from matching its record soy output and yields of last season, forecaster Somar said.
Brazil soybean output seen down in 2011/12-attache
Oct 10 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Brazil:
"Post now forecasts soybean production in 2011/12 at 75 million tonnes, a slight decrease from the record 75.3 million tonnes produced in 2010/11. Post forecasts a record 25 million hectares will be planted to soybeans in 2011/12, a 3 percent increase over 2010/11 planted area of 24.2 million hectares.
Ukraine white sugar output at 707,000 T so far
KIEV, Oct 10 (Reuters) - Ukrainian sugar refineries produced 707,000 tonnes of white sugar from sugar beet as of Oct. 10 or 39 percent more than at the same date in 2010, Ukraine's sugar union Ukrtsukor said on Monday.
The union said in a report that more than 70 refineries had received about 7.4 million tonnes of sugar beet and processed 5.8 million tonnes.
I.Coast new cocoa season arrivals up 5.6 pct
ABIDJAN, Oct 10 (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast rose 5.6 percent to reach around 21,000 tonnes by Oct. 9, exporters estimated on Monday, compared with 19,880 tonnes in the same period of the previous season.
Exporters' estimates showed that around 21,000 tonnes of beans were delivered to the West African state's two ports of Abidjan and San Pedro between Oct. 1 and Oct. 9 up from 19,880 tonnes in the same week a year ago.
India's 2012 wheat output seen at record 86 mln T
NEW DELHI, Oct 10 (Reuters) - India expects a record wheat harvest of 86 million tonnes in 2012, the farm secretary said on Monday, raising hopes of exports for a second straight year from the world's second-biggest producer and consumer of the grain after China.
India, which consumes about 76 million tonnes of wheat a year, harvested a record 85.93 million tonnes of the grain in 2011 and allowed exports of 2 million tonnes.
Brent stays near $109 on Europe optimism, Kuwait strike
SINGAPORE, Oct 11 (Reuters) - Brent crude held near $109 on cautious optimism that European banks may avert a financial crisis after leaders vowed to unveil a plan to resolve the region's debt woes while a strike in OPEC member Kuwait threatened exports.
"The market is a little bit optimistic over the European banking issue, but we still need to watch the situation carefully," said Ken Hasegawa, a commodity sales manager at Newedge Japan.
Shanghai copper up as Beijing supports bank shares
SHANGHAI, Oct 11 (Reuters) - Shanghai copper rose 0.7 percent on Tuesday, lifted by gains in Chinese equities after Beijing announced buying of domestic bank shares, although London copper slid on worries about the euro zone.
"Gains in Chinese equities do have some pick-me-up effect on Shanghai base metals, but this is mainly short term," said Jinrui Futures analyst Zhao Kai.
China resumes talks to buy uranium miner Kalahari
LONDON, Oct 10 (Reuters) - A top Chinese nuclear power generator is back in talks to buy Kalahari Minerals , the biggest shareholder in one of the world's largest uranium projects, as the commodity-hungry country steps up efforts to meet its growing energy needs.
Kalahari confirmed on Monday that discussions had restarted with state-owned China Guangdong Nuclear Power Corp (CGNPC), after a deal earlier this year fell through in the aftermath of the Fukushima disaster in Japan. It gave no detail on price.
Metals price dive brings earnings gloom
NEW YORK, Oct 10 (Reuters) - Global economic concerns have sparked a precipitous drop in metals prices in recent months, which will likely result in dismal quarterly profits for mining companies and steelmakers.
Stagnant economies in developed countries are crimping demand for metals such as aluminum, used in making cars and aircraft, and for copper, used in electrical wiring for new buildings. Steel, too, is seeing weak demand from the construction industry, which accounts for half its business.
METALS - Shanghai copper up as Beijing supports bank shares
SHANGHAI, Oct 11 (Reuters) - Shanghai copper rose 0.7 percent on Tuesday, lifted by gains in Chinese equities after Beijing announced buying of domestic bank shares, although London copper slid on worries about the euro zone.Chinese shares rose nearly 2 percent in early trade on Tuesday, boosted by a unit of the country's sovereign wealth fund increasing its stakes in the "Big Four" lenders in a sign of government support for the languishing stock market.
PRECIOUS - PRECIOUS-Gold extends gains on EU debt hopes
SINGAPORE, Oct 11 (Reuters) - Spot gold prices edged higher on Tuesday, building on a rally of more than 2 percent in the previous session, as optimism on resolving euro zone's debt crisis lifted mood in commodities and equities.
The pledge by Germany and France on Sunday spurred risk appetite, which helped stage the biggest one-day rise in nearly two weeks in U.S. gold futures.
Gold extends gains on EU debt hopes
SINGAPORE, Oct 11 (Reuters) - Spot gold prices edged higher, building on a rally of more than 2 percent in the previous session, as optimism on resolving euro zone's debt crisis lifted mood in commodities and equities.
"As the news revived risk appetite, some money was being moved out of the money market to commodities, including gold," said Hou Xinqiang, an analyst at Jinrui Futures in China.
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