Asian Stocks Rise After U.S., Europe Shares Jump on Debt Pledge (Bloomberg)
Asian stocks rose, sending a regional index toward its biggest four-day advance since March 2009, after U.S. and European equities jumped in response to a pledge by German and French leaders to stem Europe’s debt crisis. Sony Corp. (6758), Japan’s largest exporter of consumer electronics, jumped 5.2 percent in Tokyo. Rio Tinto Group, the world’s second-biggest mining company by sales, rose 1.8 percent in Sydney. Korea Zinc Co. surged 5.5 percent in Seoul. Cnooc Ltd. (883), China’s No. 1 offshore oil explorer, added 6.4 percent in Hong Kong. Bank of China Ltd. climbed 8.1 percent after China’s state-run investment arm said it began buying shares of the four biggest national banks.
The MSCI Asia Pacific Index gained 2.2 percent to 116.21 as of 11:13 a.m. in Tokyo as commodity prices also advanced after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged at the weekend to deliver a plan to recapitalize the Europe’s banks and address Greece’s debt crisis by Nov. 3. More than nine stocks rose for each that fell on the gauge.
GLOBAL MARKETS-Stocks, oil, euro surge on German-Franco pledge
NEW YORK, Oct 10 (Reuters) - The euro jumped while world stocks and crude oil rallied for a fourth straight session on Monday following a pledge by Germany and France to unveil new measures to solve the festering European debt crisis.
"For now, the markets are rallying on the belief that there is forward momentum on dealing with the European bank crisis," said Andrew Busch, senior currency strategist at BMO Capital Markets.
China’s Stocks Rally After Sovereign Wealth Unit Buys Shares of Top Banks (Bloomberg)
China’s stocks rose, spurring a rebound for the benchmark index from the lowest level in more than two years, after China’s state-run investment arm said it began buying shares of the nation’s four biggest banks. Industrial & Commercial Bank of China (601398) Ltd. climbed the most in six weeks while China Construction Bank Corp. (939), Agricultural Bank of China Ltd. (601288) and Bank of China Ltd. (3988) jumped at least 2 percent after Central Huijin Investment Ltd. acquired their shares. The stock market pared gains as Yanzhou Coal Mining Co. and its rivals plunged after the government announced higher resource taxes on coking coal. “Central Huijin’s move shows the government’s intention to save the market, which is close to a bottom,” said Yang Delong, a fund manager at China Southern Fund Management Co., which oversees $21 billion. “This will help boost companies with record low valuations such as banks and automakers in the short term.”
COMMODITIES-Oil, gold lead gains cheered by euro zone efforts
NEW YORK, Oct 10 (Reuters) - Commodity markets rallied on Monday, extending their rebound from one-year lows as a promise to resolve the euro zone debt crisis by month's end buoyed riskier assets and caused the dollar to fall.
"The market is likely to remain on tenterhooks for a little while yet as far as Europe is concerned. We are still not out of the woods yet,"
Soybean Slump Ending as Record Global Demand Overwhelms Farms: Commodities (Bloomberg)
The biggest rout in soybean prices in more than two years may be ending as farmers from Iowa to Brazil fail to keep pace with record demand for cooking oil and livestock feed. The U.S., the world’s largest grower and exporter, will harvest 7.3 percent less this year, leading the first decline in global output since 2009, the U.S. Department of Agriculture estimates. Morgan Stanley expects soybeans to average $14.25 a bushel in the 12 months ending Aug. 31, the most ever and 21 percent more than yesterday’s closing price of $11.775. The use of soybeans expanded at almost four times the pace of the world population in the past decade, led by China, government data show. While prices began tumbling last month on investors’ mounting concern that slowing growth will weaken demand for raw materials, global consumption of cooking oils hasn’t fallen during a recession in the past three decades, USDA data show.
Oil up 3 pct on euro zone plan, Kuwait export halt
NEW YORK, Oct 10 (Reuters) - Oil rose nearly 3 percent on Monday, extending gains into a fourth straight session after a strike halted Kuwait's crude exports and France and Germany pledged to come up with a plan to tackle the euro zone crisis.
German Chancellor Angela Merkel and French President Nicolas Sarkozy promised on Sunday to unveil by the end of October a comprehensive new package to resolve the debt crisis, which has dragged on oil and other commodities for months. "There's an assumption there will be some kind of resolve in the euro zone crisis,"
Libya to free up oil sector-deputy minister
TRIPOLI, Oct 10 (Reuters) - Libya's oil sector will be freed up under the new government and companies will have more say over exploration, projects and operations, Libya's deputy oil minister told Reuters on Monday.
"We want to remove restrictions on management to provide more opportunity for development and for young people," Omar Shakmak said in an interview.
China and Russia to hold energy talks while Putin visits
BEIJING/MOSCOW, Oct 10 (Reuters) - China and Russia will discuss an elusive giant gas deal during Prime Minister Vladimir Putin's visit to Beijing, but a Russian official said on Monday that there were no plans to sign an agreement just yet.
Putin's two-day visit from Tuesday will be his first foreign trip since revealing plans to reclaim Russia's presidency. He could seek to narrow price disagreements that have prevented Russia from signing a 30-year deal to supply China with up to 68 billion cubic metres of gas per year.
POLL-US crude inventories seen up as imports rebound
Oct 10 (Reuters) - U.S. commercial crude stockpiles are expected to have risen last week as imports rebounded and refinery runs fell, a preliminary Reuters poll of analysts found on Monday.
The survey of seven analysts projected that crude oil stocks rose 660,000 barrels on average for the week ended Oct. 7, after data from the U.S. Energy Information Administration showed stockpiles off 4.68 million barrels at 336.3 million barrels in the previous week.
Libya to free up oil sector-deputy minister
TRIPOLI, Oct 10 (Reuters) - Libya's oil sector will be freed up under the new government and companies will have more say over exploration, projects and operations, Libya's deputy oil minister told Reuters on Monday.
"We want to remove restrictions on management to provide more opportunity for development and for young people," Omar Shakmak said in an interview.
NYMEX-Natural gas mostly ends higher as shorts cover
NEW YORK, Oct 10 (Reuters) - U.S. natural gas futures, backed by short-covering after last week's 5 percent slide, mostly ended higher on Monday but mild weather forecasts and concerns about growing supplies continued to limit the upside.
"Gas was oversold last week, so we probably saw some short-covering,"
EURO COAL-Prices inch up, track wider commodities
LONDON, Oct 10 (Reuters) - Prompt physical coal prices inched up by around by around 25-50 U.S. cents a tonne on Monday, taking their lead from gains on oil and wider commodities markets.
"Oil is up quite strongly today, and that is certainly helping things, and commodities are up in general so it has taken coal with it," a European trader said.
Gold Extends Biggest Advance in a Month as Debt Optimism Helps Buoy Euro (Bloomberg)
Gold extended its biggest advance in a month as optimism that policy makers will resolve Europe’s debt crisis bolstered the euro, boosting the appeal of the metal denominated in U.S. currency. Bullion for immediate delivery climbed as much as 0.5 percent to $1,684.63 an ounce, the highest level since Sept. 23, before trading at $1,681.38 at 12:11 p.m. in Singapore. The metal jumped 2.4 percent yesterday, the most since Sept. 8. Futures for December increased 0.7 percent to $1,682.70. “Gold rose on U.S. dollar weakness,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, wrote in an e-mail today. Markets are rallying “on better EU sentiment,” he wrote.
No comments:
Post a Comment