Asian stocks rose the most in more than two months, the euro reached a two-week high and oil gained the most since January after Spain sought a bailout for its banks and China’s exports beat estimates. Treasuries fell.
The MSCI Asia Pacific Index climbed 1.6 percent as of 10:17 a.m. in Tokyo and the Nikkei 225 Stock Average rose 2.3 percent. Futures on the Standard & Poor’s 500 Index increased 1.2 percent. The euro strengthened 1 percent to $1.2635. The 10-year U.S. Treasury yield rose seven basis point to 1.71 percent, while credit-default swaps on Asian bonds dropped. Oil for July delivery jumped as much as 2.7 percent in New York. Copper futures added 2.1 percent.
The euro strengthened to as much as $1.2671, the highest since May 23. The European currency has fallen 3.5 percent in the past six months, the worst performance among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. Photographer: Hannelore Foerster/Bloomberg
June 11 (Bloomberg) -- Gao Ting, chief China strategist at UBS Wealth Management, talks about the nation's economy, central bank monetary policy, and stock market. China’s exports rose in May at more than double the pace analysts estimated while industrial output and retail sales trailed forecasts, signaling that last week’s interest-rate cut was aimed at countering a domestic slowdown. Gao speaks from Shanghai with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
June 11 (Bloomberg) -- Michael Kurtz, Hong Kong-based global head of equity strategy at Nomura Holdings Inc., talks about Europe's debt crisis and his investment strategy for the region's stocks. Spain asked euro-region governments for as much as 100 billion euros ($125 billion) to rescue its banking system. Kurtz also discusses China's economy with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
June 11 (Bloomberg) -- Helen Zhu, chief China equity strategist at Goldman Sachs Group Inc., talks about the outlook for the nation's economy and stocks. She speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
June 8 (Bloomberg) -- Liu Yang, chairwoman of Atlantis Investment Management Ltd., talks about China's central bank monetary policy, economy and stock market. Liu also discusses Chinese Communist Party leadership. She speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
June 8 (Bloomberg) -- Rahul Chadha, head of Asia Pacific investment division for Mirae Asset Global Investments in Hong Kong, talks about China's rate cut, its implications for global financial markets and his investment strategy. Chadha also discusses the European sovereign debt crisis. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
June 6 (Bloomberg) -- Atul Lele, Sydney-based equity strategist at Credit Suisse Group AG, talks about Australia stocks, the nation's currency, and his investment strategy. Lele also discusses Europe's sovereign debt crisis. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Spain asked euro-region governments over the weekend for as much as 100 billion euros ($126 billion) to help shore up its banking system, a sign Europe is tackling a crisis that has roiled markets around the world. Chinese data showed exports grew last month at more than double the pace analysts estimated, while imports of crude oil rose to a record.
“The bailout will keep companies that borrow from Spanish banks from going down all together,” said Kiyoshi Ishigane, a Tokyo-based senior strategist at Mitsubishi UFJ Asset Management Co., which oversees the equivalent of $70 billion. “In China, overseas demand is stronger than expected.”
The MSCI Asia Pacific Index, which gained for the first time in six weeks in the previous five days, has tumbled 13 percent from this year’s high on Feb. 29. Canon Inc., a camera maker that gets about 31 percent of sales from Europe, rose 2.6 percent in Tokyo. Samsung Electronics Co., which counts China as its biggest market, gained 2.1 percent in Seoul.
Euro Strengthens
The euro strengthened to as much as $1.2671, the highest since May 23. The European currency has fallen 3.5 percent in the past six months, the worst performance among the 10 developed-nation currencies tracked by Bloomberg Correlation- Weighted Indexes.
“Markets were wondering whether Spain was going to drag on for another month or two,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp. (WBC), Australia’s second-largest lender. The Spanish bailout “is evidence that policy makers are willing to act,” Speizer said.
Yields on 10-year Treasuries touched a more than one-week high as demand for safer government debt eased. Treasuries have gained 3 percent this quarter through June 8, based on Bank of America Merrill Lynch data. The yield on South Korean five-year bonds climbed six basis points, or 0.06 percentage point, to 3.4 percent.
Default-Swaps
The cost of insuring bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan dropped 10 basis points to 187 basis points, Royal Bank of Scotland Group Plc prices show. The gauge is on course for its biggest daily decline since Nov. 30, according to data provider CMA.
Oil climbed after data from the Beijing-based General Administration of Customs showed that China, the world’s second- biggest oil consumer, increased crude imports to a record in May as refineries raised processing rates.
Asian currencies advanced with the South Korean won strengthening 0.7 percent to 1,166.9 per dollar and the Chineseyuan gaining 0.1 percent to 6.3660 per dollar. China’s overseas shipments climbed 15.3 percent in May from a year earlier, the customs bureau said, exceeding all 29 estimates in a Bloomberg News survey.
