Business Headlines

Asian Stocks Edge Higher, Kiwi Slides on Outlook: Markets Wrap

published May 10th 2017, 8:53 pm, by Adam Haigh

(Bloomberg) —Asian stocks advanced as global equities remained at record levels and a rebound in oil boosted energy producers. The New Zealand dollar declined after the nation’s central bank said it will keep rates at a record low for an extended period.

Shares from Hong Kong to New Zealand advanced. Japanese shares were little changed, trading near the highest since December 2015. The S&P 500 Index edged higher to claim a second closing record this week. Gold was steady after six days of declines. Oil extended a rebound from last week’s rout. Chinese shares resumed declines, with the Shanghai Composite heading for the lowest close since September 2016 amid scrutiny of regulatory intervention in the country’s financial markets.

Corporate earnings and positive data on the U.S. economy have buoyed sentiment about global growth. While profit reports have largely topped estimates, Toyota Motor Corp. dented optimism after forecasting a second straight annual decline in profit. New York Fed President William Dudley will give a speech in Mumbai, a chance for investors to assess future U.S. monetary policy after Dallas Fed President Robert Kaplan cast doubt on the pace of rate increases.

While the Reserve Bank of New Zealand kept its benchmark rate unchanged, the central bank said it will keep rates there for an extended period, saying inflation will slow. The bank projected that inflation will decelerate to 1.1 percent in the first quarter of 2018, and said a premature monetary tightening could undermine growth.

Here are the key events investors will be scrutinizing:

A monetary policy decision is due in the Philippines. The Bank of England on Thursday publishes its interest-rate decision and quarterly Inflation Report.Here are the main moves in markets:

Stocks

Japan’s Topix index slipped 0.2 percent, while the Nikkei 225 Stock Average rose 0.1 percent as SoftBank Group Corp. boosted the gauge after posting results that topped analysts’ estimates. Hong Kong’s Hang Seng added 0.5 percent, gaining for a fourth straight day. South Korea’s Kospi advanced 0.7 percent. New Zealand’s S&P/NZX 50 jumped 1 percent to the highest level since September. Australia’s S&P/ASX 200 Index added 0.7 percent. The Shanghai Composite Index fell 0.2 percent, heading for a seventh decline in eight days. Futures on the S&P 500 were little changed after the underlying gauge rose 0.1 percent Wednesday, closing at an all-time high. The Stoxx Europe 600 Index advanced 0.2 percent.

Currencies

The yen rose 0.1 percent to 114.17 per dollar. The Bloomberg Dollar Spot Index rose less than 0.1 percent, after Wednesday’s 0.1 percent decline. The kiwi fell 1.6 percent to 68.29 U.S. cents, the biggest slide since Donald Trump’s election victory in November.

Bonds

The yield on 10-year Treasury notes fell three basis points to 2.39 percent, after rising for the past three sessions. Yields on 10-year Australian government notes fell one basis point to 2.65 percent.

Commodities

West Texas oil rose 0.2 percent to $47.43 a barrel after jumping 3.2 percent Wednesday. The rebound comes after a 6.3 percent slide last week. Gold added 0.1 percent to $1,220.25, following a six-day slide.

–With assistance from Jake Ulick.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net Jeff Sutherland

The Author

Walt Alexander

Walt Alexander

Walt Alexander is the editor-in-chief of Men of Value. Learn more about his vision for the online magazine for American men with the American values—faith, family & freedom—in his Welcome from the Editor.

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