Asian Stocks Rise as Ringgit Weakens While Gold Retreats

Asian stocks climbed, with the regional index rising from a one-month low led by Japanese shares, as better-than-estimated Chinese and U.S. economic data bolstered the global outlook. Most Asian currencies weakened against the dollar as precious metals retreated.

The MSCI Asia Pacific Index gained 0.5 percent by 9:11 a.m. in Tokyo, after closing at the lowest level since Oct. 8 last week. Japan’s Topix Index (TPX) jumped 1.2 percent as the yen traded at a seven-week low versus the greenback. Standard & Poor’s 500 Index (SPX) futures were little changed. Currencies from Australia to Malaysia and South Korea lost at least 0.1 percent. Gold was near the lowest closing level since Oct. 16 and silver lost 0.5 percent while copper futures rose 0.3 percent.

Industrial output in China rose more than analysts estimated last month while inflation quickened less than forecast, burnishing prospects for the world’s second-largest economy with Communist Party leaders currently meeting over policy. U.S. payrolls added almost twice as many workers as projected in October as investors gauge the timeline for Federal Reserve stimulus cuts. Australia reports on home loans today and Malaysia releases factory production figures.

Australia’s S&P/ASX 200 Index added 0.4 percent after snapping a four-week rally to decline 0.2 percent last week. The Kospi Index (KOSPI) rose 0.3 percent in Seoul after sliding 2.7 percent last week.

(Source: Bloomberg)

Dollar Holds Gains Before Jobs Data as GDP Boosts Fed Taper Bets

The dollar held gains against most major peers before a U.S. jobs report today and after data yesterday showed the economy expanded more than forecast, fueling bets for an earlier taper in Federal Reserve stimulus.

The U.S. currency headed for a second weekly gain against the euro as a Bloomberg measure of U.S. economic surprises turned positive for the first time in almost a month. The euro was set for a second weekly loss versus the yen after the European Central Bank unexpectedly cut interest rates to a record yesterday. Australia’s dollar fell after the central bank reduced its growth forecast for next year.

The dollar was little changed at $1.3414 per euro as of 9:44 a.m. in Tokyo from yesterday, when it touched $1.3296, the strongest level since Sept. 16. The greenback bought 98.19 yen from 98.09. Japan’s currency traded at 131.72 per euro from 131.63 in New York, when it gained 1.3 percent.

The dollar has risen 0.5 percent against the euro this week, following a 2.3 percent rally last week. It has fallen 0.5 percent versus the yen, while Japan’s currency has gained 1 percent over the euro.

(Source: Bloomberg)

Euro Holds Gain Versus Peers Before ECB; Aussie Drops on Jobs

 The euro held yesterday’s gain against most major peers before European Central Bank policy makers meet today amid speculation the region’s economy isn’t fragile enough to warrant an interest-rate cut.

The euro yesterday halted a five-day drop against nine developed market counterparts tracked by Bloomberg Correlation Weighted Indexes, with ECB President Mario Draghi scheduled to speak after the bank’s decision. A gauge of U.S dollar strength remained lower, after falling yesterday, before data that may show an expansion in U.S. gross domestic product slowed last quarter. Australia’s dollar dropped against its 16 major peers after employment rose less than economists predicted.

The euro traded at $1.3503 at 9:54 a.m. in Tokyo, after yesterday rising 0.3 percent to $1.3513. The common currency fetched 133.29 yen from 133.31. The dollar was little changed at 98.72 yen. The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,014.84 after dropping 0.3 percent to 1,013.48 yesterday.

The ECB will leave its main refinancing rate at a record low 0.5 percent today, according to 67 of 70 economists surveyed by Bloomberg News. Bank of America Corp., Royal Bank of Scotland Group Plc and UBS AG predict the central bank will reduce borrowing costs by 25 basis points.

(Source: Bloomberg)