GLOBAL MARKETS-Stocks, euro rally on crisis hopes, U.S. data
NEW YORK, Oct 14 (Reuters) - Global stocks and the euro rallied on Friday over growing optimism that Europe is on track to resolve its festering sovereign debt crisis and after data showed a surprising surge in U.S. retail sales.
"Right now we are trading on hopes of a decisive policy response," said Jens Nordvig, head of G10 FX strategy at Nomura Securities in New York.
Asian Stocks Rise, Extend Biggest Weekly Gain Since March; Olympus Plunges
Asian stocks rose, extending the biggest weekly gain since March on the region’s benchmark index, after Group of 20 finance chiefs meeting in Paris endorsed parts of a plan to contain Europe’s debt crisis. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, advanced 2.2 percent in Sydney. National Australia Bank Ltd., the nation’s biggest business lender, climbed 2.3 percent. Esprit Holdings Ltd. (330), a clothier that gets 83 percent of its revenue in Europe, surged 7.8 percent in Hong Kong. Sony Corp. rose 4.6 percent after profit at its Sony Ericsson Mobile Communications AB venture beat analyst estimates. Olympus Corp. tumbled 22 percent after at least six brokerages cut their ratings on the optical-equipment maker after the sacking of its. The MSCI Asia Pacific Index advanced 1.7 percent to 118.79 as of 11:52 a.m. in Tokyo. Eight stocks rose for each that fell. The gauge climbed 3.4 percent last week after German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged to deliver a plan to recapitalize Europe’s banks and address Greece’s debt crisis.
Japanese Stocks Rise Toward One-Month High as G-20 Eases Europe Concern
Japanese stocks climbed, with the Nikkei 225 (NKY) Stock Average heading for its highest close in a month, after Group of 20 finance chiefs meeting in Paris endorsed parts of a plan to contain Europe’s debt crisis. Sumitomo Mitsui Financial Group Inc., Japan’s second- largest lender by market value, gained 3.3 percent. Sony Corp. jumped 4.6 percent after earnings at its mobile phone unit beat analysts’ earnings estimates. Olympus Corp. slumped 22 percent after auditor PricewaterhouseCoopers called for an investigation into an acquisition. “Investors are recovering their risk appetite,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “We could see that G-20 countries would cooperate with European countries in tackling the debt crisis, which helped concern over the European crisis recede.”
COMMODITIES-Biggest weekly gains in months; oil leads
NEW YORK, Oct 14 (Reuters) - Oil prices closed up 3 percent on Friday and metals and crop markets jumped too, driving commodities to their biggest weekly advance since December.
"This is all dollar-driven and I haven't seen anything else that would tell me otherwise," Peter Hillyard, head of metals sales in Europe for ANZ, said, referring to the gains in gold.
Malaysia eyes moves to reduce power disruption risk
PUTRAJAYA, Malaysia Oct 14 (Reuters) - Malaysia's government has set up a task force of oil companies and power producers to decide on a mix of alternative fuels and operational measures to reduce electricity disruption risks stemming from a gas supply shortage, a minister said on Friday.
The task force involves national oil firm Petronas, which supplied less gas to the power sector due to frequent maintenance shutdowns, and other oil majors, said Energy Minister Peter Chin.
Oil gains 3 pct on Europe hopes, US sales data
NEW YORK, Oct 14 (Reuters) - Oil prices rose 3 percent on Friday, posting a second straight weekly gain, on lift from stronger-than-expected U.S. retail sales and optimism about the prospect that European leaders can reach a deal to address the euro-zone debt crisis.
"Equities were up on the retail numbers and good Google results and oil is very responsive to those numbers and we're seeing a reallocation of funds, with some shorts possibly moving back into long positions," said Richard Ilczyszyn senior market strategist at MF Global in Chicago.
Oil Rises a Second Day on Speculation U.S., Europe May Bolster Fuel Demand
Oil extended gains from the highest close in almost a month after investors increased bullish bets on crude and European leaders pledged to deliver a plan to keep their debt crisis from sapping demand for fuel. Futures rose as much as 1.1 percent, adding to last week’s 4.6 percent climb, after Group of 20 finance ministers and central banks set an Oct. 23 deadline for a plan to avoid a Greek default, bolster banks and curb contagion. Hedge funds and other money managers raised their net-long positions for crude for the first time in a month. China may say tomorrow its economy grew more than 9 percent last quarter. “It does look as if that extremely pessimistic view that the world was heading into recession, if not depression, is now changing and the overall investment view is what we’re looking at is a low-growth environment,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “Confirmation of the growth story in China will be important.”
Iran crude reserves rise to 158 bln barrels-report
TEHRAN, Oct 16 (Reuters) - Iran's oil reserves stand at 158 billion barrels, the ISNA news agency reported on Sunday, signalling a slight rise in the Islamic Republic's estimate.
Last October Iran upped its reserves figure to 150.31 billion barrels from a previous estimate of 138 billion barrels in response to neighbour Iraq increasing its estimate.
Natural gas ends up 5 pct on cool weather outlook
NEW YORK, Oct 14 (Reuters) - U.S. natural gas futures rose nearly 5 percent on Friday and more than 6 percent for the week on short covering prompted by forecasts for cooler weather next week in consuming regions.
"Today experienced one heck of a good old fashioned short covering rally the likes of which we have not seen in the gas market for a very long time," said Energy Management Institute's Dominick Chirichella.
Euro Coal-Dec DES ARA trades at $117/T, down $6
LONDON, Oct 14 (Reuters) - Prompt physical coal prices fell again on Friday although few fresh trades were reported, but in contrast, oil and gas prices rose.
"Oil recovered and rose but coal dipped, lower demand in Europe is starting to be more felt in prices," one European trader said.
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