Asian Stocks Advance as Japanese Shares Climb Amid Weaker Yen

  • Yen extends longest losing streak against dollar since August
  • India lowers rates in first decision by new monetary panel

Asian stocks rose, with Japanese shares rallying as the yen weakened, after data showing expansion in U.S. manufacturing boosted optimism over the health of the world’s largest economy.

The MSCI Asia Pacific Index added 0.2 percent to 140.85 as of 5:08 p.m. in Hong Kong. Japan’s Topix index rose 0.7 percent as the yen dropped for a sixth day against the dollar, declining 0.8 percent to 102.44. The odds the Fed will raise interest rates in December climbed to 61 percent on Monday, from 51 percent a week earlier, as new orders and production expanded last month, indicating gradual improvement across America’s manufacturing landscape. Indian shares rose after the country’s central bank cut interest rates.

“The data is suggesting the Fed will likely raise rates in December,” Michael McCarthy, chief market strategist at CMC Markets, said by phone from Sydney. “We’ll probably have a couple of months of stronger data gauging from the strength of new orders. The yen weakness is supportive of Japanese exports.”

South Korea’s Kospi index added 0.6 percent, as did Taiwan’s Taiex index. Equity benchmarks in Singapore and Malaysia gained at least 0.3 percent. Thailand’s SET Index climbed 1.1 percent and the Philippine Stock Exchange Index rose 0.5 percent.

India Rates

The S&P BSE Sensex index climbed 0.4 percent. India’s new monetary policy committee unanimously cut interest rates at its first review, taking advantage of easing inflation to boost growth in Asia’s third-largest economy. The benchmark was lowered to 6.25 percent from 6.50 percent, the Reserve Bank of India said on Tuesday. The move was predicted by 16 of 39 economists in a Bloomberg survey.

Australia’s S&P/ASX 200 Index gained 0.1 percent. Reserve Bank of Australia Governor Philip Lowe gave his first policy statement Tuesday without deviating from a neutral stance, leaving the cash rate unchanged at 1.5 percent. New Zealand’s S&P/NZX 50 Index slipped 0.3 percent.

Evergrande Surges

In Hong Kong, a surge in China Evergrande Group enervated traders as week-long holidays on the mainland weighed on market turnover. Evergrande jumped 8.2 percent, the most in a year, after the developer said it plans to move assets into a property company in Shenzhen, where valuations are higher. The Hang Seng Index added 0.5 percent on trading volumes 44 percent lower than the daily average over the past month.

Toyota Motor Corp. rose 1.9 percent, pacing gains among Japanese exporters as the yen weakened. Olympus Corp. climbed 3.9 percent in Tokyo after the camera maker said it will sell unit Nippon Outsourcing Corp. to Longreach Group Ltd. Noble Group Ltd. jumped 9 percent in Singapore after the commodities trader took full ownership of Noble Mansfield Renewable Energy.

Futures on the S&P 500 Index rose 0.2 percent after the U.S. equity benchmark gauge fell 0.3 percent on Monday. Traders are keeping a close watch on U.S. economic reports this week, scouring data for clues as to the timing of a potential Fed rate increase. A key jobs report on Friday could show a pickup in the pace of hiring, according to economists surveyed by Bloomberg.

Oil declined from the highest close in three months before data forecast to show U.S. crude stockpiles expanded. West Texas Intermediate futures slipped 1 percent.

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