European Shares Rebound as Yen Strengthens; Oil Declines

European stocks rose, rebounding from the first weekly loss in a month, and Asian shares fell after Japan’s top central banker indicated that interest rates may gain as the economy improves. Oil retreated for a fifth day and South Africa’s rand weakened while the yen and gold climbed.

The Stoxx Europe 600 Index advanced 0.3 percent at the close. Standard & Poor’s 500 Index futures gained 0.1 percent. The MSCI Asia Pacific Index slid 1.3 percent. The yen strengthened 0.4 percent to 100.96 per dollar. The rand slid against most of its major peers. Spanish and Italian bonds rose for the first time in three days. Crude slipped 0.5 percent in New York, while gold rallied 0.6 percent. Markets were shut in the U.S. and U.K. for holidays.

Fiat SpA, the Italian automaker, and Vivendi SA, the French media and telecommunications company, led European shares higher. Bank of Japan Governor Haruhiko Kuroda, speaking yesterday, cited an April BOJ report indicating rates could rise between one and three percentage points in an improving economy without causing instability. Data will probably show tomorrow that U.S. consumer confidence improved.

“Some investors think that the correction is over and they are prepared to go back into the market,” Raimund Saxinger, a fund manager at Frankfurt-Trust Investment GmbH, which oversees about $22 billion, said in a telephone interview. “The auto sector is leading the advance with Fiat.”

Fiat, Vivendi

European stocks climbed, following a two-day decline. Fiat gained 4.4 percent after Italy’s industry minister offered to help support the country’s biggest carmaker. Vivendi added 2.8 percent as Qatar Telecom QSC’s Chief Executive Officer, Nasser Marafih, said his company has raised $12 billion to finance its bid for a majority stake in Maroc Telecom. Vivendi owns 53 percent of Maroc Telecom, according to data compiled by Bloomberg.

A gauge of technology companies posted the second biggest advance of the 19 industry groups on the Stoxx 600 as SAP AG climbed 2.1 percent. The world’s largest maker of business-software systems abandoned talks to buy Jive Software Inc., people familiar with the matter said after the close of European trading on May 24. European equities fell last week as investor confidence was dented by speculation the Federal Reserve will scale back momentary stimulus.

The Conference Board’s index of U.S. consumer sentiment probably climbed to 71 this month from 68.1 in April, according to the median estimate of economists surveyed by Bloomberg before the New York-based private research group releases the data tomorrow.

Emerging Markets

The MSCI Emerging Markets Index added 0.2 percent following the biggest weekly decline in seven weeks. Benchmark gauges in India, Poland and Taiwan rose at least 0.9 percent, while the Philippine Stock Exchange Index tumbled 2.4 percent, the most since June 4.

In Brazil, real estate developer MRV Engenharia e Participacoes SA led losses among members of the Ibovespa benchmark, which closed little changed. Mexico’s IPC dropped 0.9 percent.

The Shanghai Composite Index added 0.2 percent as environmental-protection companies gained. The country won’t sacrifice the environment to ensure short-term economic growth, President Xi Jinping said May 24. The Hang Seng China Enterprises Index of mainland stocks listed in Hong Kong rose for the first time in five days, advancing 0.3 percent.

The yen rose against the dollar after last week’s 1.9 percent increase, the biggest since the five days ended June 1, 2012. It is still down 19 percent in the past six months on Prime Minister Shinzo Abe’s pledge to stem deflation.

Weaker Rand

Japan’s currency appreciated 0.4 percent to 130.54 per euro, while the dollar traded at $1.2931 per euro. The rand slid 0.4 percent to 9.6104 per dollar as concern growth in South Africa is slowing weighed on the currency.

Spain’s 10-year bond yield fell nine basis points to 4.32 percent and the rate on similar-maturity Italian debt dropped nine basis points to 4.05 percent. Germany’s 10-year bund yield climbed three basis points to 1.46 percent.

West Texas Intermediate crude oil for July delivery dropped to $93.65 a barrel in New York. The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of the world’s oil supply, will maintain its output quota of 30 million barrels a day when the group meets May 31 in Vienna, according to 19 of 20 traders and analysts surveyed by Bloomberg.

Gold rose, extending gains after the best week in a month, as International Monetary Fund data showed Russia and Kazakhstan expanded gold reserves for the seventh straight month in April. Gold for immediate delivery advanced to $1,394.78 an ounce.

Before it's here, it's on the Bloomberg Terminal.