Asian Stocks, Emerging Currencies Rise on China Manufacturing
Nov. 1 (Bloomberg) -- Asian stocks rose, emerging markets currencies strengthened and oil climbed after China's manufacturing expanded at the quickest pace in six months and South Korean exports grew faster than expected.
The MSCI Asia Pacific Index gained 0.8 percent to 130.32 and futures on the Standard & Poor's 500 index climbed 0.8 percent as of 1:52 p.m. in Tokyo. The won approached a six- month high against the dollar and the ringgit jumped the most in eight weeks. Oil rose as much as 53 cents a barrel and the yen weakened against all its major counterparts on speculation the Bank of Japan will expand monetary easing.
"The strong data coming out of China is suggesting the period of economic slowdown is coming to an end," said Stephen Halmarick, head of investment markets research at Colonial First State Global Asset Management in Sydney, which oversees $135 billion. "That's very good for Asia, Australia and other countries that rely on China for export growth."
China's Purchasing Managers' Index rose to 54.7 in October from 53.8 a month earlier, the nation's logistics federation said today, beating the median forecast of 13 economists surveyed by Bloomberg News and adding to signs the economy is withstanding government efforts to curb property speculation and improve energy efficiency. South Korea's exports increased 29.9 percent in October from a year earlier, the government said, as makers of cars and chips benefited from Japan's struggle to restrain the strength of the yen.
Japan Easing
The Bank of Japan has said it plans to discuss purchases of exchange-traded funds and real-estate investment trusts at a Nov. 4-5 meeting as the yen nears a postwar high against the dollar. The central bank left its benchmark interest rate and credit programs unchanged last week.
Hong Kong's Hang Seng Index jumped 1.9 percent. The Shanghai Composite Index rose 1.9 percent for its first increase in five days. South Korea's Kospi index rose 1.3 percent and Taiwan's Taiex index advanced 1.1 percent while Japan's Topix fell 0.6 percent, on course for its sixth consecutive retreat.
Jiangxi Copper Co. climbed 5.6 percent in Hong Kong, pacing gains by China's commodity producers. Kia Motors Corp. climbed 9.2 percent in Seoul, the most in five months, as Morgan Stanley and Korea Investment & Securities Co. raised their share price estimates after the carmaker posted record quarterly earnings.
Phone Sales
Acer Inc., the world's second-largest computer maker, surged 4.2 percent to a six-month high in Taipei. The company said it expects to ship as much as 5 million phones next year after delivering about 1 million handsets this year.
Nissan Motor Co., the Japanese carmaker that derives 35 percent of its sales from North America, declined 1.3 percent in Tokyo on concern the strengthening yen will hurt the value of export earnings. Nomura Holdings Inc., Japan's biggest brokerage, sank 4.3 percent after profit plunged.
The yen dropped to 80.63 per dollar in Tokyo from 80.40 last week, after earlier touching 80.22, the strongest since April 1995 and near its postwar high of that month. It slid to 112.72 yen per euro from 112.12.
South Korea's currency rose the most in a week after inflation accelerated to a 20-month high and exports climbed, boosting expectations the central bank will raise its benchmark interest rate. The won climbed 0.8 percent to 1,116 per dollar in Seoul, according to data compiled by Bloomberg.
Currency Demand
Malaysia's ringgit gained the most in eight weeks on speculation U.S. easing will weaken the dollar and prompt investors to buy more regional assets. The ringgit appreciated 0.5 percent to 3.0963 in Kuala Lumpur, the biggest advance since Sept. 1, Bloomberg data show.
"Strong data out of China improves the export outlook for many regional economies that rely on external demand," said Hideki Hayashi, a global economist at Mizuho Securities Co. in Tokyo. "Asian currencies will remain under pressure to strengthen on speculation of more fund inflows."
Oil for December delivery rose to as much as $81.96 a barrel in electronic trading on the New York Mercantile Exchange as the dollar weakened.
The Markit iTraxx Asia index of credit-default swaps on 50 investment-grade borrowers outside Japan fell 1 basis point to 107 basis points in Singapore, Barclays Plc prices show. Contracts on BHP Billiton jumped 8 basis points to 93 basis points in Sydney, the biggest increase since Aug. 18, according to Nomura Holdings Inc.
BHP may increase its $39 billion bid for Potash Corp. of Saskatchewan Inc. by 10 percent, the Sunday Times reported yesterday, citing people it didn't identify. Canada's government has indicated to BHP that it will approve the acquisition over opposition from provincial authorities, the newspaper said. BHP shares increased 1.2 percent in Sydney.
To contact the reporters on this story: Will McSheehy in Singapore at wmcsheehy@bloomberg.net Shani Raja in Sydney at sraja4@bloomberg.net
To contact the editor responsible for this story: Patrick Chu in Tokyo at pachu@bloomberg.net
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