Asian Stocks Rise; Euro Gains on Migration Deal: Markets Wrap
Asian stocks climbed for the first day this week as Chinese shares recouped some recent losses, bringing an end to whats been the worst quarter in nearly three years amid escalating trade tensions between the U.S. and China. The euro jumped Friday as leaders reached a deal on migration.
Shares in Hong Kong and Shanghai led the advance after their recent battering, while South Korean equities rose and those in in Japan recovered declines. A gauge of emerging-market stocks rebounded from the lowest level in 10 months. The offshore yuan rose, halting a 11-day decline that triggered concern about Chinese policy makers intentions. The euro was up about half a percent against the dollar as an agreement on a package of measures to stem the flow of migrants averts a standoff between Italy and the rest of the region.
The historically rapid drop in the yuan has heightened fears in some quarters of a devaluation in response to the U.S.s protectionist trade moves against China. Chinese officials are seen stepping in and slowing the decline in its currency should it fall toward 6.7 per dollar in the onshore market as breaking through that key psychological level may risk worsening sentiment in the countrys beaten down financial markets. The yuan has fallen almost 2 percent this week while about $2 trillion in value has been wiped from the nations stock market since its January peak.
These are key events coming up for the remainder of this week:
Indonesias central bank is expected to raise its benchmark interest rate for a third time since May in a bid to halt a deepening currency rout. Read our decision day guide here. U.S. personal spending probably increased in May for a third month, economists forecast ahead of Fridays data. China manufacturing and non-manufacturing PMI are due on Saturday.Here are the main market moves:
The MSCI Asia Pacific Index rose 0.8 percent as of 2:15 p.m. Hong Kong time. Topix index gained 0.2 percent. Shanghai Composite rallied almost 2 percent. Hang Seng rose 1.4 percent. Kospi index gained 0.5 percent. Futures on the S&P 500 Index added 0.3 percent. Futures on the U.K.s FTSE 100 Index advanced 0.6 percent.
The Bloomberg Dollar Spot Index fell 0.4 percent. The Japanese yen fell 0.2 percent to 110.71 per dollar. The euro rose 0.5 percent to $1.1628.
The yield on 10-year Treasuries rose two basis point to 2.856 percent. Australias 10-year yield rose one basis point to 2.63 percent.Commodities
West Texas Intermediate crude fell 0.2 percent to $73.3 a barrel. Gold rose 0.3 percent to $1,251.67 an ounce. LME copper climbed 0.4 percent to $6,647.50 per metric ton.