AFX: S.Africa's rand up on euro, gold; stocks seen up
JOHANNESBURG, March 1 (Reuters) - South Africa's rand firmed against the dollar in early trade on Monday, supported by a stronger euro and a rise in gold prices to a one-week high, while stock futures pointed to a firmer start on the bourse.
Higher risk appetite helped boost Asian stocks as signs emerged that Greece's debt crisis could be easing, overriding lower-than-expected Chinese manufacturing data. Copper prices leapt higher after an earthquake in top producer Chile.
Firmer gold prices could help lift the resource-heavy local bourse. The JSE's blue chip Top-40 March futures contract was up 1 percent at 0640 GMT, ahead of the market opening at 0700 GMT.
The rand was trading at 7.6995 to the dollar, 0.2 percent firmer than its New York close of 7.7150 on Friday.
"The euro is slightly stronger than it was on Friday and that's the reason you've seen the rand (firmer). Obviously we are watching (the euro) for direction," said Brigid Taylor, a trader at Rand Merchant Bank.
"We expect to remain within ranges for the next few trading sessions... looking for ranges of between 7.62 and 7.80."
The rise in the price of gold, a key South African export, on bargain hunting off the back of the euro, also benefited the local currency.
Government bonds were steady, with investors watching for the domestic purchasing managers' index (PMI) at 0900 GMT that will likely offer further evidence of the recovery on the production side of the economy.
Manufacturing output surged in the fourth quarter of last year, helping the wider economy grow at a higher-than-expected annualised rate of 3.2 percent.
However, the expansion masked weak consumer spending that may well still see an interest rate cut later this month.
The yield on the 2015 bond was up 1 basis point at 8.155 percent, while the 2036 yield was flat at 8.94 percent.
(Reporting by Olivia Kumwenda; Editing by Neil Fullick) (For more Africa cover visit: http://af.reuters.com -- To comment on this story email: SouthAfrica.Newsroom@reuters.com) Keywords: MARKETS SAFRICA/MORNING (olivia.kumwenda@thomsonreuters.com; +27 11 775 3044;)
