Asian markets cautious ahead of Europe summit
TOKYO, Oct 21 (Reuters) - Asian shares inched up while the euro clung to overnight gains, but markets largely stayed within range, as investors awaited a weekend meeting of European leaders for signs of progress in resolving the region's debt crisis.
"Assets across the board are coming under pressure as it becomes clear that European banks, when faced with a stress test, will likely reduce their assets to strengthen their capital," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory Co.
EU Said to Consider Wielding $1.3 Trillion to Break Impasse (Bloomberg)
European governments may unleash as much as 940 billion euros ($1.3 trillion) to fight the debt crisis, seeking to break a deadlock between Germany and France that is forcing leaders to hold two summits within four days. Negotiations on combining the European Union’s temporary and planned permanent rescue funds as of mid-2012, while scrapping a ceiling on bailout spending, accelerated this week after efforts to leverage the temporary fund ran into European Central Bank opposition and provoked the French-German clash, two people familiar with the discussions said. They declined to be identified because political leaders will have to decide.
The option may be one way out of the impasse between Europe’s two biggest economies as President Barack Obama presses for them to find a solution. Finance ministers meet in Brussels today from about 2 p.m. to lay the groundwork for an Oct. 23 meeting of government leaders that had been the deadline for a solution to the debt crisis. A summit for Oct. 26 was set yesterday after Germany and France said the EU needs more time to seal a “global and ambitious” accord.
Stocks Advance in Europe Before EU Debt-Crisis Summit; U.S. Futures Rise (Bloomberg)
European stocks advanced as policy makers discussed unleashing $1.3 trillion in funds to help contain the euro area’s debt crisis as they seek to break a deadlock between Germany and France. Asian shares and U.S. index futures climbed. Banks and mining companies rebounded from their biggest selloffs in more than two weeks. Valeo SA (FR) gained 1.8 percent, while Safran SA (SAF) slumped 6.6 percent after the companies reported earnings. The benchmark Stoxx Europe 600 Index gained 0.7 percent to 234.76 at 8:26 a.m. in London, trimming this week’s loss to 1.6 percent. The MSCI Asia Pacific Index rose 0.3 percent, while futures on the Standard & Poor’s 500 Index expiring in December climbed 0.2 percent.
Japan to Sell $10.4 Billion More Debt to Pay for Earthquake Reconstruction (Bloomberg)
Japan will sell about 800 billion yen ($10.4 billion) of additional government debt to the market this fiscal year to fund earthquake reconstruction and help companies cope with a strong yen, the Ministry of Finance said. The total for investors such as banks and life insurers will be a record 145.7 trillion yen, compared with an initial plan for the year started April 1 of 144.9 trillion yen. The amount announced today was below predictions from analysts at UBS AG, Mizuho Securities Co. and Nomura Securities Co. as the government seeks to control the biggest debt burden in the industrialized world. Policy makers aim to drive an economic recovery after three-consecutive quarters of contraction and the March 11 quake and tsunami that left more than 19,000 people dead or missing.
FOREX-Nervous euro clings to gains, outlook brittle
TOKYO, Oct 21 (Reuters) - The euro clung to gains eked out in volatile overnight trade but looked increasingly vulnerable as European leaders remained deeply divided ahead of a weekend summit on the region's debt crisis.
The euro, last at $1.3786 , has kept well off its nine-month low hit in early October, however, despite a widening in spreads on yields between safe-haven German Bunds and other European countries.
Corn up for 2nd day, harvest pressure limits gains
SINGAPORE, Oct 21 (Reuters) - U.S. corn and wheat rose half a percent, gaining for a second straight day in cautious optimism ahead of a weekend meeting of European leaders on the region's debt crisis.
"The markets seems to be reacting positively but if you look at it realistically the rally may not last as there is nothing very concrete, it's just speculations about possible resolution to the debt crisis," said Lynette Tan, an analyst at Phillip Futures in Singapore.
China 2012 rice import seen steady at 700,000T-govt
HO CHI MINH CITY, Oct 21 (Reuters) - China's milled rice import demand in 2012 is expected to be around 700,000 tonnes, similar to this year due to sufficient stock while market prices would remain high, a government official said on Friday.
The 2012 import, equivalent to around 1 million tonnes of rough rice, or paddy, would come from Thailand and Vietnam, the official from the government-run National Grain and Oilseeds Information Center told Reuters, adding that the higher-priced Thai grain would meet demand for the luxury market.
Argentina soy area seen 18.6 mln hectares-exchange
BUENOS AIRES, Oct 20 (Reuters) - Argentine farmers will plant soy on 18.6 million hectares (46 million acres), the Buenos Aires Grains Exchange said on Thursday in its first 2011/12 area estimate for the world's No. 3 soybean supplier.
The forecast marked a slight increase from the 18.5 million hectares seeded in the 2010/11 season, the exchange said in its weekly crop progress report.
Costa Rica coffee harvest suffers some damage from rains
SAN JOSE, Costa Rica, Oct 20 (Reuters) - Torrential rains in Costa Rica caused an estimated loss of at least 23,000 60-kg bags and that number could rise as plant disease spreads in the country's soaked fields, the national coffee institute said on Thursday.
Officials at the institute, known as ICAFE, had forecast coffee production at around 1.58 million 60-kg bags for the 2011/12 crop that began in October.
High rice prices to hit Thai, Vietnam exports
HO CHI MINH CITY, Oct 20 (Reuters) - High prices may lead to a 30 percent cut in rice shipments from top exporter Thailand next year and No. 2 seller Vietnam may be unable to increase its export volumes as buyers turn to cheaper rice from India, traders and industry officials said.
India, the world's second-biggest producer, eased curbs on exports last month and its grain is around $100 a tonne cheaper than Thai and Vietnamese rice, they said at a rice conference in Vietnam.
Thailand 2012 rice exports to fall 30 pct -assoc
HO CHI MINH CITY, Oct 20 (Reuters) - Rice exports from Thailand next year could fall as much as 30 percent from 2011 to 7.0 million-7.5 million tonnes, as export prices have been pushed up by a government intervention scheme and floods, a senior industry official said on Thursday.
Higher export prices, as well as India's recent return to the market to sell, would cut Thailand's annual rice shipment this year to 10 million tonnes from 12 million tonnes in earlier projections, said Korbsook Iamsuri, President of Thai Rice Exporters Association. Exports in 2010 were 9 million tonnes.
Panasonic to drop planned Japan solar plant -source
TOKYO, Oct 21 (Reuters) - Panasonic Corp will drop a plan to convert a television panel plant in Japan into a solar panel factory, hit by an industry price war and a strong yen that is making exports less competitive, a source with direct knowledge of the matter said.
Panasonic is also in talks with public-private venture Japan Display about selling a liquid-crystal display TV panel plant located in Chiba, not far from Tokyo, said two sources with knowledge of the matter.
Brent crude steady above $109 ahead of Europe Summit
SINGAPORE, Oct 21 (Reuters) - Brent crude held steady above $109, after recovering in the previous session on optimism policymakers will move closer to resolving the euro zone's debt crisis at a meeting this weekend and stem any slowdown in oil demand.
"The market will trade in a very narrow range, between $84 and $88 a barrel for U.S. crude till the outcome of the summit is known," said Ken Hasegawa, a commodities derivatives manager with Newedge Brokerage in Tokyo. "Nobody is willing to take positions at this point."
China's alumina imports may rise in Oct-Dec on prices
HONG KONG, Oct 20 (Reuters) - China's imports of alumina, the main raw material for primary aluminium production, may rise in the October-December period as smelters take term shipments due to lower prices, trading sources said on Thursday.
Trading sources said Chinese aluminium smelters holding 2011 alumina import contracts had settled prices with overseas suppliers for 200,000-300,000 tonnes of alumina in September and early October as London Metal Exchange aluminium prices fell.
Italy 9-mo steel output up 11.3% yr/yr - industry
MILAN, Oct 20 (Reuters) - Steel output in Italy, the European Union's second-biggest producer after Germany, rose 11.3 percent year-on-year to 21.259 million tonnes in the first nine months of 2011, industry body Federacciai said on Thursday.
In September alone, Italy's steel output rose 11.4 percent to 2.551 million tonnes, according to data published on Federacciai's website.
LME copper rebounds after near 7-pct drop; Europe summit eyed
SHANGHAI, Oct 21 (Reuters) - London copper rose after its largest one-day collapse in four weeks in the previous session, while investors kept an eye on a weekend meeting of European leaders for signs of progress in resolving the region's debt crisis.
"The fall in London copper last night was not caused by any new information, but reflected the volatility ahead of the EU summit. The rebound today is still a reflection of the prevailing uncertaintites and a lack of trading direction," said CRU analyst Qu Yi.
METALS-LME copper rebounds after near 7-pct drop; Europe summit eyed
SHANGHAI, Oct 21 (Reuters) - London copper rose after its largest one-day collapse in four weeks in the previous session, while investors kept an eye on a weekend meeting of European leaders for signs of progress in resolving the region's debt crisis.
Three-month copper on the London Metal Exchange rose 4 percent to $7,005.25 a tonne by 0307 GMT, after dropping nearly 7 percent in the previous session.
PRECIOUS-Gold edges up on arbitrage buying; EU summit eyed
SINGAPORE, Oct 21 (Reuters) - Gold prices rebounded, boosted by arbitrage buying interest from Shanghai market, but gains could be limited as uncertainty remains on whether European policymakers would agree on a definitive solution to euro zone's debt crisis.
Deep division among European leaders on strengthening the bloc's rescue fund has dampened hopes that Europe was close to finding a solution, rattling commodities and sending gold down more than 1 percent in the previous session.
Gold edges up on arbitrage buying; EU summit eyed
SINGAPORE, Oct 21 (Reuters) - Gold prices rebounded, boosted by arbitrage buying interest from Shanghai market, but gains could be limited as uncertainty remains on whether European policymakers would agree on a definitive solution to euro zone's debt crisis.
"There was quite some buying from Shanghai after market opened there," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
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