Jan. 4 (Bloomberg) -- Stocks rose as emerging-market shares extended the longest rally in two months and U.S. index futures gained on speculation reports this week will add to evidence the American economy is improving. The dollar strengthened and the Swiss franc declined. Stocks in China, Japan and the U.K. led the advance as trading resumed after holidays. The MSCI Emerging Markets Index climbed 0.4 percent at 10:25 a.m. in London, extending yesterday’s 1.1 percent increase. The Stoxx Europe 600 Index added 0.8 percent, and Standard & Poor’s 500 Index futures gained 0.2 percent. The dollar strengthened 0.5 percent against the yen, while the Swiss franc slipped against its peers. The price of credit-default swaps insuring European high-yield corporate bonds fell to the lowest level since April 21. Gold dropped for a second day and sugar climbed the most in a week. Orders placed with U.S. factories probably retreated at a slower pace in November, while U.S. automobile sales continued at the fastest pace since 2009 in December, reports today may show. General Motors Co. boosted sales 29 percent in China last year, the carmaker said. Data later this week may indicate U.S. employment picked up for a third month. “We’ve seen two months of positive data, which is definitely buoying investors’ expectations for 2011,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne. “Signs are encouraging that things are improving.” China, Japan The MSCI index of 21 developing countries advanced for a sixth day. China’s Shanghai Composite Index climbed 1.6 percent. Equity indexes in Turkey, Egypt and Malaysia increased more than 1 percent. The MSCI Asia Pacific added 0.5 percent, as Japan’s Nikkei 225 jumped 1.7 percent, the biggest jump in a month. More than two stocks advanced for every one that declined in Europe’s Stoxx 600. London-traded mining shares including Antofagasta Plc and Xstrata Plc rallied at least 3 percent, lifting the U.K.’s FTSE 100 1.8 percent higher. BP Plc jumped 4.5 percent after the Daily Mail newspaper said Royal Dutch Shell Plc considered a takeover bid. Carrefour SA gained 2.3 percent as BofA-Merrill Lynch Global Research recommended the retailer. Factory Orders The increase in U.S. futures indicated the S&P 500 may extend yesterday’s climb to the highest since September 2008. Bookings for U.S. manufacturers’ goods probably declined 0.1 percent in November, following a 0.9 percent decrease the previous month, according to the median estimate of 51 economists surveyed by Bloomberg. The Commerce Department is due to release the data at 10 a.m. in Washington. Another report may show total U.S. auto sales probably ran at an annual rate of 12.3 million vehicles last month. The dollar appreciated 1 percent against the Swiss franc and strengthened 0.7 percent against the Australian currency to $1.0094. The franc weakened 1.2 percent versus the euro. The pound climbed 0.6 percent against the euro after reports showed U.K. manufacturing expanded at the fastest pace in 16 years in December and mortgage approvals unexpectedly increased. A gauge based on a survey of companies by Markit Economics and the Chartered Institute of Purchasing and Supply rose to 58.3 from 57.5 in November, according to an e-mailed statement today in London. The median forecast of 19 economists in a Bloomberg News survey was for 57.2. A measure above 50 indicates expansion. Bond Risk The Markit iTraxx Crossover Index of credit-default swaps on 50 mostly junk-rated European companies fell 17 basis points to 419, according to JPMorgan Chase & Co. Gold for immediate delivery dropped 0.5 percent to $1,407.75 an ounce, after falling 0.4 percent yesterday. White, or refined, sugar jumped 2.4 percent, the most since Dec. 23, as crops in India may be damaged by rains. India is the biggest sugar producer after Brazil. Natural gas for next month delivery rose for a seventh day in New York, gaining 0.5 percent on forecasts of colder-than- normal weather that may boost demand for the heating fuel. --With assistance from Jason Carey, Claudia Carpenter, Abigail Moses, Daniel Tilles, Rob Verdonck and Jason Webb in London. Editors: Stephen Kirkland, Mark Gilbert To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net. To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net.

Source