Treasuries Drop, U.S. Stocks, Oil Advance on Economic Optimism
U.S., Asian Stocks, Oil Advance
Tomohiro Ohsumi/Bloomberg
A visitor looks at an electronic stock board at the Tokyo Stock Exchange.
A visitor looks at an electronic stock board at the Tokyo Stock Exchange. Photographer: Tomohiro Ohsumi/Bloomberg
Sept. 10 (Bloomberg) -- Jim Bianco, president of Bianco Research LLC, talks about his expectations for the U.S. economy and his investment strategy. Bianco speaks with Carol Massar, Sheila Dharmarajan and Jon Erlichman on Bloomberg Television's "In the Loop." John Brady, senior vice president at MF Global, also speaks. (Source: Bloomberg)
Sept. 10 (Bloomberg) -- James Paulsen, chief investment strategist at Wells Capital Management, talks with Julie Hyman about the outlook for the U.S. economy and markets, and his investment strategy. Paulsen also discusses the significance of the Obama administration's economic initiatives compared with market forces. (Source: Bloomberg)
Sept. 10 (Bloomberg) -- Mohamed El-Erian, chief executive officer and co-chief investment officer at Pacific Investment Management Co., discusses the Obama administration's efforts to spur U.S. economic growth and the outlook for Treasuries. El-Erian talks with Tom Keene and Ken Prewitt on Bloomberg Radio's "Bloomberg Surveillance." (Source: Bloomberg)
Asian stocks rose for a second day and crude oil gained as fewer people applied for jobless benefits in the U.S. and Japan boosted its estimate for second- quarter economic growth. The yuan strengthened as China posted a third straight trade surplus of more than $20 billion.
The MSCI Asia Pacific Index gained 0.3 percent to 121.88 as of 4 p.m. in Tokyo, extending this week’s advance to 1.5 percent. The Stoxx Europe 600 decreased 0.4 percent to 264.13 at the open in London. Oil climbed 1.5 percent following an unexpected drop in U.S. stockpiles and the yuan appreciated 0.2 percent, headed for its biggest weekly advance since June. Futures on the Standard & Poor’s 500 Index rose 0.1 percent.
Japan’s Nikkei 225 Stock Average led gains among Asia’s benchmark stock indexes after the government said gross domestic product grew at an annualized 1.5 percent rate in the three months ended June 30, faster than the 0.4 percent reported in August. A U.S. report showed initial jobless claims dropped to the lowest level in almost two months.
“A lot of bad news has now been priced in, so the question you should ask yourselves is what could go right from here, rather than what could go wrong.” said Paul Xiradis, who manages about $10 billion as chief executive officer of Ausbil Dexia Ltd. in Sydney. “We could see a big swing-around back into some riskier assets, and, given the positioning of the market, it could be quite powerful.”
Weaker Yen
The Nikkei 225 climbed 1.6 percent, South Korea’s Kospi index added 1.1 percent and Taiwan’s Taiex index gained 0.7 percent. Exporters led Japan’s rally as the yen slid against all 16 major currencies tracked by Bloomberg. The currency weakened 0.4 percent to 84.06 per dollar, having two days ago reached a 15-year high of 83.35.
Sony Corp., which derives almost 70 percent of its sales outside Japan, advanced 1.8 percent. Canon Inc., the world’s largest camera maker, jumped 5.9 percent after the company said it would buy back shares.
Crude oil traded at $75.35 a barrel in New York. U.S. stockpiles fell 1.85 million barrels to 359.8 million last week, a report from the Energy Department showed yesterday. Supplies were forecast to climb by 1 million barrels, according to a Bloomberg News survey.
The yuan appreciated 0.5 percent this week to 6.7696 per dollar, taking its advance to 0.8 percent since a two-year peg was scrapped on June 19. U.S. Treasury Secretary Timothy F. Geithner called on China to let its currency strengthen at a faster pace on Sept. 8, a day after China’s foreign ministry said “external pressure” wouldn’t affect yuan policy. that China should let the yuan rise more quickly.
‘Political Theater’
“China’s move today amounts to political theater, a movement meant to keep the U.S. happy at a time when Geithner, the European Union and International Monetary Fund are all calling foul,” said Douglas Borthwick, Connecticut-based managing director at Faros Trading LLC.
China’s trade surplus was $20.03 billion in August, up from $15.7 billion a year earlier, the customs bureau reported today. The Asian nation’s exports to the U.S. exceeded its imports by $119 billion in the first half of 2010, putting it on course to exceed last year’s surplus of $227 billion, U.S. data show.
Financial markets were closed today for holidays in India, Indonesia, Malaysia, Pakistan, the Philippines and Singapore.
To contact the reporter for this story: James Regan in Hong Kong Jregan19@bloomberg.net;
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