Yen Climbs After Positive Jobs Data; Oil Advances, Stocks Rise
Dec. 7 (Bloomberg) -- Japan’s currency climbed after thebiggest weekly decline in a decade against the dollar, liftingoil prices. Asian stocks rose after the U.S. reported the lowestmonthly job losses since the recession began.
The yen strengthened against all 16 of its most-tradedcounterparts after the biggest weekly drop against the dollarsince the period ended Feb. 19, 1999. Crude oil advanced from aseven-week low. The MSCI Asia Pacific Index rose 0.38 percent to120.60 at 4:35 p.m. Tokyo time after rising as much as 0.63percent. Stock index futures in Europe and the U.S. fell.
Investors are favoring higher-yielding assets as the firstglobal recession since World War II abates. Demand for workersincreased in Australia, where advertisements for job vacanciesjumped in November by the most since May 2007, and data releasedDec. 4 showed the U.S. unemployment rate unexpectedly fell to 10percent from a 26-year high.
“Japanese and Australian exporters will benefit at themargin from a more robust U.S. economy and its perceivedincreased appetite for imports,” said Tim Schroeders, who helpsmanage $1.1 billion at Pengana Capital Ltd. in Melbourne.
The yen strengthened for the first time in five days onspeculation Japanese companies are bringing back overseasearnings. The currency gained at least 0.4 percent versus all 16major counterparts, and 0.59 percent to 133.95 per euro.
“Japanese firms . . . will repatriate the proceeds ofoverseas share offerings into yen over the next couple ofweeks,” said Yuji Saito, head of the foreign-exchange group inTokyo at Societe Generale SA.
Dollar Reversal
The dollar fell 0.72 percent to 89.84 yen, the first dropin a week, and declined to $1.4894 per euro from $1.4858 on Dec.4 in New York.
“Safe-haven flows that favored the dollar have beenreversing,” the Basel, Switzerland-based Bank for InternationalSettlements said in a report today. ”With risk on, equityprices rising and declining volatility, dollars are sold.”
The U.S. currency surged 4.7 percent against the yen lastweek as employers cut the fewest jobs in November since therecession began.
“Gains in the dollar may be limited as the employmentreport alone is unlikely to bring forward the timing of FederalReserve rate hikes significantly,” said Akane Vallery Uchida, acurrency strategist at Royal Bank of Scotland Group Plc in Tokyo.“The yen will probably weaken against the crosses this weekamid firm risk sentiment.”
Nikkei Rises
Japan’s Nikkei 225 Stock Average climbed for a sixth day,adding 1.45 percent to 10,167.60. Japan Airlines Corp., Asia’slargest airline by sales, jumped 7 percent after the Yomiurisaid the carrier may get a loan guarantee from the government.
South Korea’s Kospi Index rose 0.5 percent as SamsungElectronics Co., the world’s largest maker of computer-memorychips, gained 1.2 percent.
Hong Kong’s Hang Seng Index lost 0.35 percent. Australia’sS&P/ASX 200 Index dropped 0.55 percent. New Zealand’s NZX 50Index slipped 0.25 percent.
Futures on the Standard & Poor’s 500 stock index fell 0.3percent. Futures on Europe’s Dow Jones Stoxx 50 Index fell 0.34percent at 7:30 a.m. London time.
Record-low interest rates and $12 trillion in spending bygovernments worldwide have spurred a 58 percent rally in theStoxx 600 since March 9.
Oil Higher
Crude oil for January delivery rose for the first day infour, gaining as much as 63 cents, or 0.8 percent, to $76.10 abarrel in after-hours electronic trading on the New YorkMercantile Exchange.
Global oil inventories are declining and prices are in“the right range,” Saudi Arabian Oil Minister Ali al-Naimisaid Dec. 5. Crude has gained 70 percent this year.
“We’re in the early stages of an economic recovery theshape of which is still unclear,” said Toby Hassall, researchanalyst with CWA Global Markets Pty in Sydney. It’s hard to seeoil “moving too far away from where it is now until we start tosee more clear evidence of where we’re going.”
Copper, used for power transmission in homes and cars,increased as much as 0.4 percent to $7,070 a metric ton on theLondon Metal Exchange, and traded little changed at $7,040.50 at2:05 p.m. Singapore time. Gold for immediate delivery traded 0.4percent lower at $1,157.36 an ounce, after dropping 3.8 percenton Friday, the biggest one-day decline since January.
Newcrest Mining Ltd., Australia’s biggest gold producer,tumbled 4.8 percent to A$36.45, the steepest drop in the MSCIindex. Sumitomo Metal Mining Co., Japan’s biggest gold producer,lost 3 percent to 1,445 yen, the sharpest decline in the Nikkei225. Zijin Mining Group Co., China’s biggest gold producer, sank4.7 percent to HK$8.34 in Hong Kong.
Won Falls
South Korea’s won declined by the most in a week as thebetter-than-forecast U.S. employment data spurred bets theFederal Reserve will raise interest rates, eroding demand forhigher-yielding currencies. The won fell 0.3 percent to 1,155.95,while the Malaysian ringgit slid 0.3 percent to 3.3925.
Treasuries were little changed as the U.S. prepared to sell$74 billion in notes and bonds this week.
To contact the reporters on this story:Shani Raja in Sydney at Sraja4@bloomberg.net;
Last Updated: December 7, 2009 02:33 ESTSource: Bloomberg
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