Asian Stocks Advance After U.S. Rally on Jobs Data as Yen Drops

Asian stocks rose, with the regional benchmark index heading for its longest stretch of gains this year, after jobs data spurred the biggest two-day rally for U.S. equities since October and the yen weakened.

Nissan Motor Co. climbed 1 percent, pacing gains among Japanese exporters. Rio Tinto Group (RIO), the world’s second-largest mining company, added 1.2 percent in Sydney after copper futures rose a third day. Landing International Development Ltd. surged 13 percent in Hong Kong after the Chinese property developer and partner Genting Singapore Plc announced plans to build a $2.2 billion casino resort in South Korea’s Jeju island.

The MSCI Asia Pacific Index added 0.4 percent to 133.75 at 11:19 a.m. in Tokyo, rising a fourth day. The gauge has climbed 2.8 percent from a five-month low on Feb. 4. The Topix index rose 0.7 percent as the yen weakened. The Standard & Poor’s 500 Index jumped 1.3 percent on Feb. 7. Japan’s current-account deficit widened to a record in December, while China’s central bank signaled volatility in money-market interest rates will persist and borrowing costs will rise.

The MSCI Asia-Pacific gauge dropped 4.6 percent in January for its worst start to a year since 2009 amid concern about the Federal Reserve’s stimulus cuts, China’s economic slowdown and volatility in developing markets. Global equity losses in 2014 peaked at $3 trillion on Feb. 4 and have since narrowed to $1.6 trillion, data compiled by Bloomberg show.

(Source: Bloomberg)           

Dollar Weakens on Signals of U.S. Economic Slowing; Zloty Rises

The dollar fell the most in three weeks as a report showing U.S. manufacturing slowed added to speculation whether the economy is strong enough for the Federal Reserve to accelerate reductions in its asset-purchase program.

The U.S. currency fell versus most major peers after its biggest monthly gain in January since May as a global selloff of emerging-market currencies prompted investors to seek haven assets. The euro strengthened against the dollar before the European Central Bank meets this week amid speculation slowing inflation may prompt officials to consider additional stimulus. The Polish zloty rose while a broader measure of emerging-market currencies extended last week’s losses.

The Bloomberg Dollar Spot Index, which monitors the greenback against 10 major counterparts, fell 0.2 percent to 1,029.87 at 5 p.m. New York time. It declined as much as 0.3 percent in the biggest drop since Jan. 10.

(Source: bloomberg)

U.S. Stocks Sink With Emerging Currencies After Fed Taper

U.S. stocks fell, pushing the Standard & Poor’s 500 Index to a two-month low, while Treasuries and the yen gained as the Federal Reserve said it would make further cuts to economic stimulus and as emerging-market currencies weakened. Gold and natural gas climbed.

The S&P 500 slumped 1 percent to 1,774.20 by 4:34 p.m. in New York, the lowest close since Nov. 12 after European stocks retreated. Facebook Inc. (FB) rose after market on better-than-estimated earnings. Ten-year Treasury yields dropped seven basis points and the yen gained 0.7 percent. Russia’s ruble slipped to a record versus its dollar-euro basket, while South Africa’s rand sank 2.1 percent. Gold futures rose the most in a week while natural gas contracts jumped to a four-year high.

The Fed said it will trim its monthly bond buying by another $10 billion to $65 billion, sticking to its plan for a gradual withdrawal from outgoing Chairman Ben S. Bernanke’s unprecedented easing policy. Turkey doubling its key interest rate and South Africa unexpectedly increasing borrowing costs failed to assuage concern over emerging markets and a slowdown in China, where a private report tomorrow may firm signs that manufacturing is contracting in Asia’s largest economy.

(Source: Bloomberg)