Asian Stocks Rebound as Yen Weakness Boosts Japanese Shares

Bloomberg (09/7) -- Asian stocks rose, with the regional equities gauge on course to rebound from its biggest drop in two weeks, as Japanese exporters rallied after the yen weakened and industrial companies advanced.

Toyota Motor Corp., which gets 75 percent of its auto sales outside Japan, gained 1.4 percent. BHP Billiton Ltd., the world’s largest mining company, advanced 1.9 percent in Sydney as metals prices climbed. Olympus Corp. sank 6.4 percent after the biggest endoscope maker said it plans to sell as much as 118 billion yen ($1.2 billion) of shares.

The MSCI Asia Pacific Index gained 1.2 percent to 130.79 as of 11:16 in Hong Kong, with all 10 industry groups on the gauge climbing. The measure fell 10 percent through yesterday from a five-year high on May 20 amid concern the U.S. Federal Reserve will begin tapering stimulus as China’s economy slows and Japan puts off unveiling economic reform policies until after upper house elections later this month.

The MSCI Asia Pacific Index yesterday fell 1.5 percent, the most since June 24. That left the gauge trading at 12.7 times average estimated earnings compared with 14.9 for the S&P 500 and 13 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 11:10 AM

Gold Swings After Biggest Gain in Week as Investors Cut Holdings

Bloomberg (09/7) -- Gold swung after advancing the most in a week as investors lowered holdings in the largest bullion-backed exchange-traded product and the U.S. dollar strengthened amid speculation the Federal Reserve will scale back stimulus.

Spot gold climbed as much as 0.4 percent to $1,242.52 an ounce, after falling 0.3 percent, and traded at $1,240.03 by 9:33 a.m. in Singapore Prices climbed 1.1 percent yesterday, the most since July 1, as the Dollar Index declined from a three-year high. Assets in the SPDR Gold Trust fell 15 metric tons yesterday, the most in two weeks. Holdings stood at 946.96 tons, the least since February 2009.

Gold has dropped 8.2 percent since June 19, when Fed Chairman Ben S. Bernanke said the central bank may reduce its $85 billion of monthly asset purchases this year and end the program in 2014 as the economy improves. Alcoa Inc. kicked off the U.S. earnings season yesterday, reporting earnings that beat analysts’ estimates and fueling increased optimism about growth.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 9:50 AM

China Stocks Swing Between Gains and Losses After Inflation Data

Bloomberg, (9/7) -- China’s stocks swung between gains and losses after the release of June inflation data. Health-care companies rose, while consumer-staples and property shares slid. “The CPI and PPI figures were not much of a surprise and the market has reached a consensus that the economy will remain flat going forward,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “Most of the bad news from the economic front has been priced in and the market is focused on companies’ earnings now.” The Shanghai Composite Index added 0.1 percent to 1,960.29 at 9:47 a.m. local time, after plunging 2.4 percent yesterday. Trading volumes in the index were 28 percent lower than the 30-day average, while 30-day volatility was at 22.9, near a three-month high, according to data compiled by Bloomberg. The CSI 300 Index advanced 0.2 percent to 2,167.78 today, while the Hang Seng China Enterprises Index rose 0.6 percent. The consumer price index rose 2.7 percent from a year earlier, the National Bureau of Statistics said, compared with a median estimate of 2.5 percent in a Bloomberg News survey and a 2.1 percent gain in May. Producer prices fell 2.7 percent. The decline in producer prices compares with the median estimate for a 2.6 percent drop in a Bloomberg survey. The index has fallen for 16 straight months, the longest stretch of declines since 2002. Estimates for June consumer inflation in a Bloomberg News survey of 40 analysts ranged from 2 percent to 3 percent. The government in March said it would aim to keep price gains to about 3.5 percent this year.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 9:45 AM

Asia Stocks Rise as Europe Policy Makers Pledge Low Rates

Bloomberg, (5/7) -- Asian stocks rose, with the regional equities gauge on course for a second week of gains, as European policy makers signaled they will keep borrowing costs low for longer. The MSCI Asia Pacific Index gained 0.5 percent to 131.23 as of 9:18 a.m. in Tokyo, as all 10 industry groups climbed. The gauge is headed for a 0.5 percent advance this week. Futures on the Standard & Poor’s 500 Index gained 0.9 percent, with U.S. equity markets poised to reopen following a public holiday. Markets in Hong Kong and China are yet to open. “The European Central Bank and the Bank of England have both come out and tried to combat the rise in bond yields with some forward guidance,” Keith Poore, Wellington-based head of investment strategy at AMP Capital Investors Ltd., which manages more than $130 billion, said by telephone. “The market was surprised by the dovish comments. Global growth is picking up and this should flow through to earnings and help stocks go higher.” Japan’s Topix index added 1 percent, with trading volume 4.8 percent above its 30-day average of the time of day. Australia’s S&P/ASX 200 Index advanced 1.2 percent and South Korea’s Kospi (KOSPI) index rose 0.4 percent. New Zealand’s NZX 50 Index climbed 0.5 percent. http://www.bloomberg.com/news/2013-07-04/asia-stock-futures-rise-as-europe-policy-makers-pledge-low-rates.html

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 9:37 AM

Japan Stocks Advance on European Rates Outlook, Weaker Yen

Bloomberg, (5/7) -- Japanese shares rose, with the Topix index heading for its third week of gains, after the yen weakened and European policy makers signaled they will keep borrowing costs low. The Topix added 0.7 percent to 1,179.56 as of 9:50 a.m. in Tokyo. The Nikkei 225 Stock Average climbed 1.1 percent to 14,178.77. Japan has outperformed all major equity markets this year on optimism Prime Minister Shinzo Abe will succeed in beating deflation. Abe is expected to push through economic reforms after winning upper-house elections on July 21. “There is some more upside to the Japanese market ahead of the upcoming elections,” said Masahiko Ejiri, a Tokyo-based senior fund manager at Mizuho Asset Management Co., which oversees the equivalent of $34 billion. “We’re pretty confident Abe will win the election, enabling him to further transform the economy. The weaker yen should be helping Japanese exporters.” Both the Topix and Nikkei 225 are heading for an advance of at least 3.5 percent this week as the yen’s weakness beyond 100 per dollar boosts the earnings outlook for Japanese exporters. Shares also gained after European Central Bank President Mario Draghi pledged to keep interest rates at a record low for an “extended period” yesterday, while Bank of England chief Mark Carney said increases in market rates weren’t warranted.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 9:10 AM

Oil slips but stays above $101 on Egypt unrest

LOS ANGELES (MarketWatch) — Benchmark U.S. crude-oil futures slipped in electronic trade Thursday, but still hovered at their best level in more than a year following political unrest in Egypt. Crude for August delivery was off 7 cents, or 0.1%, at $101.17 a barrel. The Egyptian military announced late Wednesday, shortly after oil trading closed on the New York Mercantile Exchange, that it had ousted Mohammed Morsi as the country’s president and suspended the constitution, which Morsi’s critics have said unfairly favored his Islamist allies. Ahead of the announcement, oil prices in Wednesday’s Nymex session jumped by $1.64, or 1.7%, to $101.24 a barrel. Oil marked the highest settlement for a most-active contract since May 2012 as Morsi’s rejection of calls for his resignation intensified concerns about the oil sector in the Middle East. Nymex trading will be closed on Thursday for the U.S. Independence Day holiday, and will reopen on Friday. August futures for Brent crude also slipped on Thursday from strong gains logged in the previous day, shedding 12 cents, or 0.1%, to $105.64 a barrel on ICE Futures. On Wednesday, they climbed $1.76, or 1.7%. Oil prices on Wednesday also rose after the U.S. Energy Information Administration said crude-oil supplies dropped by 10.3 million barrels for the week ended June 28. Analysts polled by Platts were looking for a decline of 3 million barrels. The EIA also said weekly gasoline supplies and distillate stockpiles fell, while analysts had expected each to increase. In trading Thursday, August gasoline held at $2.84 a gallon, and August heating oil shed 1 cent, or 0.4%, to $2.94 a gallon. Natural gas for August delivery slipped less than 1 cent to $3.686 per million British thermal units.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 1:20 PM

Hong Kong Stocks Climb First Day in Three After U.S. Jobs Data

Bloomberg, (4/7) -- Hong Kong stocks climbed, with the benchmark equity index rebounding from two days of declines, after U.S. labor data beat estimates and China’s government said fiscal funds should be used to stabilize economic growth.

The Hang Seng Index increased 1.5 percent to 20,456.10 as of 1:15 p.m. in Hong Kong, with just four of the gauge’s 50 companies falling. Trading volume on the measure was 28 percent lower than its 30-day intraday average, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland shares climbed 1.7 percent to 9,047.48.

“Investors are regaining confidence that the U.S. economy may not be so bad,” said Jackson Wong, vice president of Hong Kong-based brokerage Tanrich Securities Co. “Before, everyone was betting on China to boost growth. Now the focus is shifting back to the U.S.” The Hong Kong market has been oversold and investors are seeking to recoup losses, he said.

The Hang Seng China Enterprises Index, also known as the H-share index, capped its worst first half since 2008 last week. The gauge closed 27 percent below its Feb. 1 high yesterday, with the measure trading at 1.07 times the value of net assets, a level not seen since the 2008 global financial crisis.

Just two of 11 industries on the Hang Seng Composite Index have advanced this year. Materials and energy companies led declines on signs China’s economic growth is slowing. Reports this week showed the country’s industrial expansion in manufacturing and services is losing pace as the government seeks to redirect the economy away from exports.

Chinese Premier Li Keqiang said fiscal funds should be used to redevelop shantytowns and improve basic infrastructure to stabilize the world’s second-largest economy. Money should be allocated to transform the structure of the economy to focus more on domestic consumption, the State Council said in a statement on its website yesterday.

China may post second-half economic growth of 7.6%, according to a State Information Center report published in China Securities Journal. Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc last month pared their China growth projections for this year to 7.4 percent, below the government’s 7.5 percent goal.

Energy companies led gains on the Hang Seng Composite Index. West Texas Intermediate crude traded near the highest price in 14 months as U.S. stockpiles shrank the most this year and the ouster of Egypt’s president fanned concern unrest will disrupt Middle East oil supply.

Futures on the S&P 500 gained 0.1 percent as the country celebrates the July 4 holiday. The U.S. benchmark yesterday rose to the highest level in two weeks on better-than-estimated labor data as investors watched political developments in Portugal, where the splintering of the coalition government caused bond yields to surge, and in Egypt.

U.S. Jobless claims decreased to 343,000 in the week ended June 29 from a revised 348,000 in the prior period that was higher than initially reported, the Labor Department said today in Washington. An official report tomorrow will probably show the nation added 165,000 jobs in June.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 1:04 PM