Asian Stocks Fall for Sixth Day After U.S. Debt-Cutting Failure (Bloomberg)
Asian stocks fell for a sixth day, with a regional benchmark index set for the longest losing streak since August, after a congressional committee charged with reducing the U.S. deficit failed to agree on cuts. James Hardie Industries SE (JHX), a building-materials supplier that gets 68 percent of sales from the U.S., fell 1.5 percent. China Resources Land Ltd. (1109), a state-controlled developer, declined 2.2 percent amid concern property sales are slowing. Osaka Securities Exchange Co. rose 4.6 percent after Tokyo Stock Exchange Group Inc. agreed to acquire the bourse. OneSteel Ltd. slumped 11 percent in Australia after its chief executive officer said he won’t rule out shutting the steelmaker’s main plant. The MSCI Asia Pacific Index declined 0.1 percent to 112.23 as of 4 p.m. in Tokyo after swinging between gains and losses at least six times. Eight out of 10 industries on the index dropped, with five stocks falling for every four that rose.
Emerging Stocks 35% Discount Lures Goldman as Brazil to China Ease Policy (Bloomberg)
Emerging-market stocks are trading at levels 35 percent cheaper than their 15-year average as rising profits and falling interest rates from Brazil to Indonesia buoy investor confidence. While the MSCI Emerging Markets Index’s 9.7 percent gain from this year’s low on Oct. 4 lifted its price-earnings ratio to 10.3 from 9.7, the gauge is still trading below its mean since 1996, according to data compiled by Bloomberg. The measure jumped an average 35 percent after developing-nation policy makers began cutting interest rates in 2003, 2005 and 2008.
Investors pulled $26 billion from emerging-market mutual funds in the first nine months and the stock indexes sank about twice as much as advanced nations after Indonesia, Poland and Brazil raised interest rates. Now borrowing costs are coming down as policy makers seek to spur expansions at a time when export growth and inflation are slowing. The MSCI index may rise 30 percent in a year as record earnings outweigh Europe’s debt crisis, more than 17,000 forecasts compiled by Bloomberg show.
Japanese Stocks Retreat After Failure of U.S. Deficit-Cutting Committee (Bloomberg)
Japanese stocks fell for a third day, with the Nikkei 225 Stock Average closing at its lowest level since March 2009, after a U.S. Congressional committee failed to agree on deficit cuts. Nomura Holdings Inc. (8604), a brokerage that gets about 38 percent of revenue from the U.S. and Europe, dropped 1.7 percent. Central Japan Railway Co. (9022), the operator of the country’s busiest high-speed railway, slid 6.3 percent after agreeing to cover the entire cost of building stations for a magnetic-train line. Osaka Securities Exchange Co. climbed 4.6 percent after rival Tokyo Stock Exchange Group Inc. agreed to buy the bourse operator for at 129.6 billion yen ($1.68 billion). “Investors are a bit fed up with politicians generally,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney. “Politicians have been behind the curve all along, and I think the market is feeling uneasy about that.”
Asia shares fall after U.S. deficit deadlock
SINGAPORE, Nov 22 (Reuters) - Asian shares edged down as fears about the ability of politicians on either side of the Atlantic to tackle huge debt burdens sapped investors' confidence in the outlook for Western economies.
"The S&P index has broken sharply lower and looks technically pretty dire, despite more OK data as the Chicago Fed index bounced slightly and the overhang of unsold homes dipped back to a lower but still high 8 months," said Kit Juckes, head of foreign exchange research at Societe Generale.
FOREX-Dollar near 6-wk high as sovereign debt crisis dominates
TOKYO, Nov 22 (Reuters) - The U.S. dollar stayed near a six-week high against a basket of currencies after a sharp pullback in global risk appetite as the sovereign debt storm intensified on both sides of the Atlantic.
"There is no fundamental change in the markets' risk averse mood. There's been no clear progress in the euro zone," said Koji Fukaya, chief FX strategist at Credit Suisse.
Wheat, corn rebound after prices encourage buying
KUALA LUMPUR, Nov 22 (Reuters) - Grains rose, rebounding from the previous session's drop as recent declines have pushed prices lower than any forecast slowdown in demand.
Prices tumbled on Monday as fears persisted that euro zone countries will struggle to contain the region's debt crisis, with Moody's warning about France's rating outlook and Spanish yields rising a day after the country voted in a new government.
Brazil sugarcane crop on way to another letdown
SAO PAULO, Nov 21 (Reuters) - Output from the world's biggest sugar producer Brazil is likely to disappoint again next season, putting a potential floor under global sugar prices that have been falling over the past few months.
Even with investments in cane replanting and good weather in the coming months, Brazil's main center-south sugarcane region will not recover to its high-water mark of 2010/11 when mills crushed a record 557 million tonnes.
Brazil soy planting surges under favorable weather
SAO PAULO, Nov 21 (Reuters) - The planting of Brazil's soybean crop is ahead of schedule after surging over the past week, as producers race to get their crops sown as early as possible this year, grain analysts Celeres said on Monday.
Ample rains since late September in most soy producing regions have allowed producers to sow an early crop this year, unlike last season when spring rains were delayed by a month and a half due to the effects of La Nina.
Weekend rain to help Argentine soy, corn -meteorlogist
BUENOS AIRES, Nov 21 (Reuters) - Weekend rain in Argentina's main crop belt further improved conditions for soy, corn and wheat, setting the stage for healthy harvests, a meteorologist said on Monday.
Farmers in grain-exporting powerhouse Argentina were concerned by dry weather in September, but precipitation over the last six weeks in top producing province Buenos Aires and surrounding areas improved the outlook.
Ukraine to boost spring grains area to cover losses
KIEV, Nov 21 (Reuters) - Ukraine plans to sow an additional 2.0 million hectares of spring grains and 300,000 hectares of soybean in 2012 in a bid to compensate future losses in winter grain crops already affected by poor weather, Ukraine's Farm Ministry said on Monday.
"Taking into account an expected area of the reseeding, the ministry and regions had worked out the structure of the 2012 spring sowing, according to which we plan to sow additional 500,000 hectares of maize, 200,000 of spring wheat, 300,000 of soybean, 1.2 million of spring barley and 100,000 of other cereals," the ministry said in a statement.
Asian rubber producers to blacklist defaulters-Thai body
BANGKOK, Nov 21 (Reuters) - The world's top rubber producers are blacklisting buyers which have failed to honour their contracts after recent defaults caused panic selling in the physical market, the Thai Rubber Association said on Monday.
Thailand, Indonesia and Malaysia backed off from a plan to bolster prices at their weekend meeting in Bangkok, but pledged to prevent defaults from recurring after buyers, mostly from China, wanted to renegotiate contracts as prices plunged to around $3 per kg.
Brent oil steady near $107 on new Iran sanctions
SINGAPORE, Nov 22 (Reuters) - Brent crude held near $107 a barrel as fresh sanctions, and the prospect of military action, against Iran offset persistent worries about the health of Western economies and fuel demand.
"Iran adds a risk premium to crude," said Jonathan Barratt, managing director of Commodity Broking Services.
Copper bounces after 3-day fall on China demand view
SINGAPORE, Nov 22 (Reuters) - London copper futures jumped 1.5 percent as hopes that demand from top consumer China will remain strong helped the metal rebound from one-month lows in the previous session.
"Even if there's doom and gloom out there, there are selective stories which will create a bit of a bullish tone to the metal, and it seems the market has now repositioned itself ahead of demand in China," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
China aluminium output falls in Oct - IAI
LONDON, Nov 21 (Reuters) - Daily average primary aluminium output in China fell to 48,100 tonnes in October, down from 52,700 tonnes in September, provisional figures from the International Aluminium Institute (IAI) showed on Monday.
Total primary aluminium production in October (31 days) also fell, to 1.491 million tonnes from 1.581 million tonnes in September.
China Oct refined copper imports rise 7.2 pct on month
HONG KONG, Nov 21 (Reuters) - China's imports of refined copper rose 7.2 percent in October on the month to hit an 18-month high, fuelled by steady demand.
Arrivals of refined copper in the world's top copper consumer increased to 295,341 tonnes in October, their highest since April 2010 and a gain of 73.8 percent from October 2010, data from the General Administration of Customs showed on Monday.
Global, Chinese steel output down to 10-month low
LONDON, Nov 21 (Reuters) - Global and Chinese crude steel production slowed in October to their lowest levels in 10 months, as a gloomier economic outlook forced many steelmakers to cut production to tackle weakening demand and falling steel prices, data showed on Monday.
Global daily steel production slowed to less than 4 million tonnes in October and daily production in China, the largest producer and consumer of steel, fell to less than 1.8 million tonnes, in both cases the lowest level since December last year, according to a Reuters calculation based on data released by the World Steel Association.
Italy 10-month steel output up 11.5 pct-industry
MILAN, Nov 21 (Reuters) - Steel output in Italy, the European Union's second-biggest producer after Germany, rose 11.5 percent year-on-year to 24.036 million tonnes in the first 10 months of 2011, industry body Federacciai said on Monday.
In October alone, Italy's steel output rose 9.6 percent to 2.700 million tonnes, according to data published on Federacciai's website.
Gold rebounds; Europe, US debt worry weigh
SINGAPORE, Nov 22 (Reuters) - Spot gold gained half a percent, as a decline of more than 2 percent attracted some buyers, while worries about debt crises in both the United States and the euro zone are expected to keep sentiment fragile.
"Today there has been some buying interest on the physical market, although overall trading is thin," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
METALS-Copper bounces after 3-day fall on China demand view
SINGAPORE, Nov 22 (Reuters) - London copper futures jumped 1.5 percent as hopes that demand from top consumer China will remain strong helped the metal rebound from one-month lows in the previous session.
"Even if there's doom and gloom out there, there are selective stories which will create a bit of a bullish tone to the metal, and it seems the market has now repositioned itself ahead of demand in China," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
PRECIOUS-Gold rebounds; Europe, US debt worry weigh
SINGAPORE, Nov 22 (Reuters) - Spot gold gained half a percent, as a decline of more than 2 percent attracted some buyers, while worries about debt crises in both the United States and the euro zone are expected to keep sentiment fragile.
"Today there has been some buying interest on the physical market, although overall trading is thin," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
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