Asian stocks and emerging-markets currencies rose and the dollar began a third week of decline after regional leaders pledged to maintain stimulus measures and Japan’s economy grew faster than economists estimated. The MSCI Asia Pacific Index climbed 0.7 percent to a three- week high as the Asia-Pacific Economic Cooperation forum said it would keep spending until there was “durable” growth. The Dollar Index lost 0.4 percent to 74.999 as gold advanced to a record. The Indian rupee led gains among Asian currencies after Japan’s gross domestic product expanded at an annual rate of 4.8 percent in the third quarter, compared with the median forecast of 2.9 percent in a Bloomberg survey of economists. The U.S. currency weakened against 15 of its 16 most-traded counterparts as of 6:16 a.m. in London. The dollar lost 0.5 percent to $1.4972 against the euro, extending its decline this year to 6.7 percent as the recovery from the global recession encouraged investors to buy higher-yielding assets. The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against six currencies including the euro and yen, extended a two-week drop. The gauge is 0.3 percent from its year-to-date low of 74.774 on Nov. 11. The 21-member APEC group said in a statement Sunday the economic recovery isn’t on a “solid footing” yet and pledged to maintain stimulus measures until there is “durable” growth. They didn’t mention currency distortions, which U.S. companies say give China unfair trade advantages. MSCI’s Asian stock gauge headed toward its sixth advance in seven sessions, led by commodity companies on expectations higher resource prices will boost earnings. Futures on the Standard & Poor’s 500 Index climbed 0.7 percent, signaling an extension of the gauge’s 0.6 percent gain on Nov. 13. Zijin Mining Group Co., China’s largest gold producer, gained 2.5 in Shanghai while BHP Billiton Ltd., the world’s biggest mining company, added 2.8 percent in Sydney. The rupee jumped 0.6 percent to 46.09 to the dollar. The ringgit strengthened 0.4 percent to 3.3630 per dollar in Kuala Lumpur. The rupiah appreciated 0.3 percent to 9,345 in Jakarta. The Korean won rose 0.5 percent to 1,154.92 per dollar. The weakening greenback sent gold prices to a record high as demand increased for the precious metal as a store of value. Crude oil climbed from a one-month low. The dollar will continue to be under selling pressure versus higher-yielding currencies.” (Source: Bloomberg)

Source