{LONGTERMINVESTORS} Bloomberg: Asian Stocks Extend Rally as Oil Rises Toward $35; Ringgit Rises

 

Asian Stocks Extend Rally as Oil Rises Toward $35; Ringgit Rises

 

By Emma O'Brien & Anna Kitanaka

March 3, 2016 — 4:27 AM IST Updated on March 3, 2016 — 7:55 AM IST

 

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Asian stocks rose to an eight-week high, emerging-market currencies strengthened and oil climbed toward $35 a barrel, buoyed by improving U.S. economic data and prospects for further stimulus in China.

The MSCI Asia Pacific Index was set for its biggest three-day rally since August, led by banks and raw-materials producers. U.S. crude advanced for a fourth day after data showing declines in American oil production. Malaysia's ringgit and South Korea's won led gains among major currencies, while the Japanese yen was the biggest loser. Yields on Australian government debt due in a decade rose to a two-week high.

 

A raft of better-than-expected U.S. economic data and optimism China will do more to tackle the slowest growth in a quarter century are reviving investor sentiment, with global equities having recouped more than half of their 2016 losses since sinking to a 2 1/2-year low three weeks ago. A private report on American payrolls spurred a retreat in U.S. Treasuries on Wednesday as speculation increased that the Federal Reserve will raise interest rates this year. China eased lenders' reserve requirements this week, before an annual meeting of the nation's parliament meets this weekend.

"Globally it's becoming risk-on," said Ryoma Sugihara, head of equity flow sales in Tokyo at Societe Generale SA. "We're starting to see the bottom in U.S. manufacturing, oil is rebounding, China is stabilizing."

Stocks

The MSCI Asia Pacific Index rose 1.2 percent as of 11:06 a.m. Tokyo time, building on a 3.7 percent advance over the last two days. Japan's Topix climbed 1.2 percent, as a gauge of banking stocks surged 5.9 percent. The Shanghai Composite Index gained 0.6 percent and Singapore's Straits Times Index rallied 2 percent.

Standard & Poor's 500 Index futures were little changed after a 0.4 percent gain in the benchmark that took hold in the last hour of New York trade on Wednesday. Energy shares listed in the U.S. jumped 2.5 percent to their highest level since Jan. 5.

Currencies

The Bloomberg JPMorgan Asia Dollar Index rose for a fourth day, its longest winning streak since October. The ringgit and the won both strengthened 0.7 percent versus the greenback, climbing to two-week highs. The yen weakened 0.2 percent as investors favored higher-yielding currencies.

 

 

 

  

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