BLBG: Asian Stocks Gain, Led by Retailers, Exporters; Copper Declines
By Patrick Chu and Kana Nishizawa
Jan. 8 (Bloomberg) -- Asian stocks advanced, heading for the biggest weekly advance in a month, after better-than-expected gains in U.S. retail sales raised optimism for a faster global recovery. Metals fell following China’s steps to tighten lending.
The MSCI Asia Pacific Index climbed 0.5 percent to 123.93 at 4:15 p.m. in Tokyo, led by retailers and Japanese exporters. Futures on the Standard & Poor’s 500 Index rose 0.1 percent, and added 0.5 percent for the Dow Jones Euro Stoxx 50. Copper for delivery in three months on the London Metal Exchange fell as much as 0.9 percent to $7,471 a metric ton.
December same-store sales at U.S. retailers climbed 3 percent, the biggest gain since April 2008, Retail Metrics Inc. said yesterday. Government data later today may show employment was unchanged in December after two years of job cuts. China’s efforts to curb speculation caused copper to fall for the second straight day.
“Positive U.S. retail sales gave a sense of relief on the U.S. economy and markets,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees $92.3 billion. ‘If U.S. retailers are strong, it will positively impact the Japanese economy and markets.’’
Two stocks rose for every one that fell on the MSCI Asia Pacific Index. For the week, the index advanced 2.7 percent, the most since the period ended Dec. 4. The Standard & Poor’s 500 Index added 0.4 percent yesterday. U.S. companies will begin posting fourth-quarter earnings results starting next week.
Retailers Rise
Japan’s Nikkei 225 Stock Average gained 1.1 percent. The country’s automakers gained on optimism U.S. demand will rise. Honda Motor Co. added 3.1 percent to 3,185 yen, and Toyota Motor Corp. rose 2.9 percent to 3,960 yen.
Aeon Co., Japan’s largest supermarket operator, soared 6.5 percent to 848 yen after its nine-month loss narrowed from a year earlier. Michael Hill International Ltd., New Zealand’s largest jewelry retailer, jumped 10.6 percent to 73 New Zealand cents after second-quarter sales surged.
China’s Shanghai Composite Index fell 0.5 percent, declining for a third day, led by mining companies as metal prices fell and on concern the government will tighten monetary policy to combat inflation and curb asset price speculation.
The country’s central bank yesterday sold three-month bills at a higher interest rate for the first time in 19 weeks after saying its focus for 2010 is controlling the record expansion in lending and curbing price increases.
Mining Stocks Fall
Zijin Mining Group Co. slid 1.2 percent. Jiangxi Copper Co., the nation’s biggest producer of the metal, retreated 2.6 percent. SAIC Motor Corp., China’s largest carmaker, slumped 5.2 percent.
“Investors are worried the government will withdraw some of the stimulus plans,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co.
Copper for delivery in three months on the London Metal Exchange fell as much as 0.9 percent to $7,471 a metric ton and traded at $7,502 recently. Gold for immediate delivery lost 0.7 percent to $1,123.78 an ounce.
Aluminum declined 0.7 percent to $2,295 a ton after shedding 2.8 percent yesterday, the most in two months. Zinc slid 1.4 percent to $2,571 a ton, and lead lost 2.1 percent to $2,545 a ton. Nickel dropped 1.9 percent to $18,100 a ton.
Emerging-market equity and bond funds recorded net inflows in the first week of the year, extending 2009’s record increases, according to EPFR Global. Emerging-market equity funds received $2.2 billion in the week to Jan. 6, led by a $1.7 billion surge for funds investing in global emerging markets, EPFR said.
Won Strengthens
South Korea’s won climbed 0.4 percent to 1,130.75 per dollar, extending this week’s advance to 3 percent. The currency headed for its biggest weekly gain in eight months on speculation the central bank will signal plans to raise its benchmark interest rate, which was today kept at a record low. Pacific Investment Management Co., the world’s biggest bond fund, favors Korean debt on the outlook for currency gains.
“Local markets may fare better as emerging-market currencies continue to have an appreciation bias,” Michael Gomez, co-head of emerging markets said in a Jan. 7 interview.
The price of credit-default swaps protecting Asia-Pacific bonds from non-payment climbed after the U.S. benchmark rose for the first day in four yesterday.
The Markit iTraxx Australia index rose 3 basis points to 80.5 basis points as of midday in Sydney, according to Australia & New Zealand Banking Group Ltd., and the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan increased 2 basis points to 92, Royal Bank of Scotland Group Plc prices show.
The Markit CDX North America Investment-Grade index rose about 1 basis point to 79 basis points in New York yesterday, according to Barclays Capital, after Asia-Pacific swaps declined to the lowest in two years.
Crude oil for February delivery fell 0.5 percent to $82.21 a barrel, down 6 cents, in electronic trading on the New York Mercantile Exchange. Yesterday, the contract declined 52 cents to settle at $82.66.
To contact the reporters on this story: Patrick Chu in Hong Kong at pachu@bloomberg.net; Kana Nishizawa in Tokyo at knishizawa5@bloomberg.net.
