Asian Stocks Rise as Slowing China GDP Boosts Speculation of Policy Easing (Bloomberg)
Asian stocks rose after a report that showed China’s economy is slowing boosted speculation the government may take extra measures to spur growth amid concerns about Europe’s debt crisis. Country Garden Holdings Co. (2007), a real estate developer, rose 4.5 percent in Hong Kong after China’s economy grew a faster- than-estimated 8.9 percent in the fourth quarter from a year earlier. Canon Inc. (7751), a Japanese camera maker that depends on Europe for about a third of its sales, rose 0.6 percent after France sold debt at a lower cost even after its credit rating was cut. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s No. 2 publicly traded bank, rose 1.2 percent after it won a bid to buy Royal Bank of Scotland Group Plc’s aircraft-leasing unit.
The MSCI Asia Pacific Index gained 1 percent to 116.75 as of 11:16 a.m. in Tokyo, rebounding from a 1.1 percent decline yesterday, the biggest since Dec. 19. About five stocks rose for each that fell on the gauge. European Central Bank President Mario Draghi yesterday said loans offered last month to the region’s banks helped avoid “a major credit crunch.”
GLOBAL MARKETS-Shares steady as China data eyed; Europe worries weigh
TOKYO, Jan 17 (Reuters) - Asian shares inched higher and the euro stayed above a 17-month trough on Tuesday as investors focused on economic data from China to gauge the impact of the euro zone debt crisis on global growth.
"As EUR/USD tumbles toward a key long-term support level, it is interesting to note that the positive correlation between EUR/USD and equities is starting to erode," RBC Capital Markets said in a report, referring to a recovery in S&P 500 index futures from mid-December as the euro eased against the dollar.
Oil prices gain after Iran warning
LONDON, Jan 16 (Reuters) - Oil futures rose on Monday on growing tension between Saudi Arabia and Iran, after the Islamic state told its Gulf Arab neighbours not to make up any shortfall caused by an embargo on its crude oil exports.
"Iran is the main topic still by some 2 million barrels per day 'almost immediately'.
NYMEX-Natgas sinks 5 pct in holiday trade to 28-mth low
Jan 16 (Reuters) - U.S. natural gas futures sank nearly 5 percent in electronic trade on Monday, adding to last week's five-day, nearly 13 percent losing streak and tumbling to their lowest level in 28 months.
"You have a market in a glut with weak demand at a period of time when you should typically see high demand. Natural gas is responding to the dynamics of its own market, which are price bearish," said Jason Schenker, president of Prestige Economics in Austin, Texas.
Euro Coal-Prices drop $2/T with power
LONDON, Jan 16 (Reuters) - Prompt physical coal prices dropped by around $2.00 a tonne on Monday with weaker European power prices to test support at $100, utilities and traders said.
"Macros are bearish, economies in Europe are looking weak and nobody is buying anything, here or in Asia," one utility source said.
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