GLOBAL MARKETS-Asian shares gain on c.banks liquidity move
TOKYO, Dec 1 (Reuters) - Asian shares extended gains on Thursday after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding.
"We see this move as bullish risk as it is more of a precautionary USD liquidity injection to be used in the uncertain months ahead, as opposed to a response to an already-existing USD shortage," Nomura analysts Stanley Sun and Charles St-Arnaud wrote in a note.
Asian Stocks Jump as China Cuts Reserve Ratio, Central Banks Act on Crisis (Bloomberg)
Asian stocks (MXAP) jumped, with the regional index set for its biggest gain in a month, after six central banks cut the cost of emergency dollar funding for European banks and China reduced its reserve ratio for lenders. Agile Property Holdings Ltd., a Chinese property developer, and Evergrande Real Estate Group Ltd., a Guangzhou-based developer, gained at least 11 percent in Hong Kong. Hitachi Construction Machinery Co., a machinery maker that gets about a quarter of its revenue from China, jumped 7 percent in Tokyo. Jiangxi Copper Co., China’s biggest producer of the metal, surged 11 percent and BHP Billiton Ltd. (BHP), the world’s biggest mining company, gained 3.9 percent after commodity prices rose.
“The coordinated dollar funding by six central banks helps to ease concerns about a market collapse because a shortage of liquidity was one of the main things that worsened the 2008 financial crisis,” said Ryota Sakagami, Tokyo-based chief strategist at SMBC Nikko Securities. “The reduction of reserve requirements in China will lead to an increase in money supply and that’ll push up the stock market in China. It also enhances the expectation that China will turn its policy stance toward monetary easing from now on. Companies gaining profits from China will positively react.”
Nikkei 225 Advances as Central Banks Fight European Crisis, China Eases (Bloomberg)
The Nikkei 225 Stock Average (NKY) rose toward its highest level in almost a month after six central banks took action to fight Europe’s debt crisis and China eased lending curbs, boosting the outlook for economic growth in Japan’s biggest export market. Mitsubishi UFJ Financial Group Inc., Japan’s largest bank by market value, gained 3.1 percent. Komatsu Ltd., a maker of construction machinery that counts China as its fastest-growing market, jumped 6.5 percent. Mitsui O.S.K. Lines Ltd. led shippers higher after SMBC Nikko Securities Inc. boosted ratings on companies in the sector, where shares have plunged by about half this year. The Nikkei 225 gained 2.1 percent to 8,612.00 at the 11:30 a.m. trading break in Tokyo, set for its highest close since Nov. 9. The gauge dropped 6.2 percent last month amid concern that Europe’s crisis is spreading to the region’s larger economies. The broader Topix rose 1.8 percent to 741.38 today.
COMMODITIES-Cen bank move to fix liquidity sparks rally
NEW YORK, Nov 30 (Reuters) - Copper saw its biggest surge in a month on Wednesday after a coordinated central bank move to ease global liquidity fears lifted the euro against the dollar, boosting prices of dollar-denominated commodities.
"The central banks' action has been the big mover today," said Randy North, a copper trader at RBC Capital Markets.
Brent down as US stocks, Libya output up
NEW YORK, Nov 30 (Reuters) - Brent crude futures fell on Wednesday as an unexpected rise in U.S. oil inventories stemmed an early rally ignited by the top central banks' joint intervention to avoid a global liquidity crunch.
"Today's EIA data was predominately bearish across the board, with crude and distillate stocks building much more than expected," said Chris Jarvis, president of Caprock Risk management in Rye, New Hampshire.
Kuwait to keep full crude supply to Asia in Jan-Mar
TOKYO, Dec 1 (Reuters) - Kuwait has notified at least one Asian customer that it will supply full contractual crude oil volumes for January-March 2012, steady from October-December, a person familiar with the matter said on Thursday.
Kuwait has resumed the allocation of full contractual crude oil volumes to Asia from July, ending the imposition of a 5 percent curb in place since February 2009.
Natural gas ends down 2 pct, record supplies weigh
NEW YORK, Nov 30 (Reuters) - U.S. natural gas futures ended lower on Wednesday, pressured by expectations for another weekly inventory build on Thursday and concerns about record high production despite the colder outlook for next week.
"The market is looking for another storage injection (on Thursday), and the cold weather isn't here yet," a Pennsylvania-based trader said, noting forecasts look colder for next week.
Euro Coal-Prices rise $2/T with oil, euro, stocks
LONDON, Nov 30 (Reuters) - Physical prompt coal prices rose on Wednesday in line with oil, equities and the euro and bolstered by the dollar's weakness but no fresh trades were reported and fundamentals remain bearish.
"With this kind of volatility across markets people are staying on the sidelines - prices moved up nearly $2.00 since the morning with everything else," one European trader said.
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