Copper climbed to a record and shares in emerging markets gained for a third day as Chinese manufacturing expanded. The U.S. dollar weakened after lower- than-forecast American jobless claims increased demand for riskier assets. Copper futures jumped 1.2 percent at 10:22 a.m. in New York, bringing their gain this year to 29 percent. The MSCI Emerging Markets Index advanced 0.9 percent and has risen 16 percent in the past year. The Dollar Index fell 0.3 percent, bringing its loss since Dec. 22 to 1.5 percent and trimming its annual gain to 2.1 percent. The Standard & Poor’s 500 Index fell 0.2 percent after climbing 13 percent in 2010. Stocks, bonds, commodities and the U.S. dollar all rose in 2010, the first time that’s happened since 2005, amid confidence the global economy will avoid a second recession in three years. While stocks in developed nations yesterday erased losses spurred by Lehman Brothers Holdings Inc.’s 2008 bankruptcy, it took 17 months longer than emerging markets to reach that milestone. U.S. initial jobless claims fell to the lowest level since July 2008, while Chinese manufacturing growth slowed, easing concern the government will tighten monetary policy. “Today’s jobless claims report was a very nice landmark,” said Jason Pride, director of investment strategy at Glenmede in Philadelphia, which manages $19 billion. “We also got good data from China. It’s clear that even as they tighten, there’s no interest in derailing global growth.” Copper, Oil Copper futures rose 1.3 percent to a record $4.3655 a pound in New York. China is the largest consumer of copper. Crude oil slid 0.9 percent to $90.28 a barrel in New York. The MSCI emerging-markets index climbed to a seven-week high. The Hang Seng China Enterprises Index advanced 0.6 percent. Templeton Emerging Markets Group’s Mark Mobius said Chinese shares are poised to rally next year as the government keeps inflation under control, while RBC Capital Markets raised its 2011 economic growth forecast for the country to 9.5 percent from 8.8 percent in a report today. South Korea’s won led gains in emerging-market currencies, strengthening 1.2 percent versus the dollar, as Lee Young Bog, a Bank of Korea official, forecast the current-account surplus will widen this month. Taiwan’s dollar strengthened 1.4 percent against the U.S. currency. The country’s central bank raised its benchmark interest rate by 0.125 percentage point to 1.625 percent after the close of trading, matching the forecast of all 14 economists surveyed by Bloomberg News. To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Rita Nazareth in Sao Paulo at rnazareth@bloomberg.net. To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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