China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides
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12/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business
China Stocks Gain With Metals on
Stimulus Bets as Ringgit Slides
Emma O'Brien Nick Gentle
ek_obrien
October 12, 2015 — 12:55 AM CEST
Updated on October 12, 2015 — 8:30 AM CEST
Turkish lira sinks as Ankara bombing spurs military response
Shanghai gauge set for 7week high as yuan up most since
March
Chinese shares and the yuan rallied with commodities amid
speculation the government will do more to shore up growth.
Malaysia’s ringgit retreated, while U.S. equityindex futures
fluctuated after Federal Reserve Vice Chairman Stanley Fischer said
there’s potential for U.S. interestrates to rise by year end.
The Hang Seng China Enterprises Index climbed and the Shanghai
Composite Index headed for its highest close in seven weeks, while
the yuan strengthened the most since March. The Bloomberg
Commodity Index advanced for a third day. Standard & Poor’s 500
Index futures fluctuated, while European contracts dropped. The
ringgit slid after its biggest weekly surge since 1998, while Turkey’s
http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 1/8
ringgit slid after itsChinabiggest
12/10/2015
weekly surge since 1998, while Turkey’s
Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business
lira dropped after a deadly terror attack. U.S. oil traded near $50 a
barrel.
The Shanghai Composite Index is rallying amid stimulus
speculation following the National Day holidays. Bloomberg
Fischer said Sunday that while the U.S. economy may be strong
enough to withstand a rate increase by the end of 2015, policy makers
are monitoring labor conditions and the situation internationally as
they mull when to pull the trigger. Riskier assets surged last week as
the Fed’s caution, combined with evidence of slowing growth in
other major economies, spurred speculation that central banks
globally won’t be able to rein in stimulus any time soon. U.S.
Treasuries won’t trade Monday.
“If the Fed does decide to hike in October or December then the U.S.
dollar is at risk of appreciating,” said Janu Chan, a senior economist
in Sydney at St George Bank, a division of Westpac Banking Corp.
“Markets are still putting a low probability of a rate hike this year.”
Fischer joined other Fed officials, including Chair Janet Yellen, in
raising the prospect of policy tightening by the end of this year, with
http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 2/8raising the prospect
12/10/2015 ofStockspolicy
China tightening
Gain With Metals on Stimulus Bets asby the
Ringgit Slidesend ofBusiness
Bloomberg this year, with
Atlanta Fed President Dennis Lockhart saying Friday that he still
anticipates raising rates in 2015. Despite the rhetoric, traders put the
odds of an increase this year at below 40 percent, after weakerthan
expected September payrolls data fueled concern the labor market
recovery is stalling.
Stocks
The Hang Seng China Enterprises Index advanced 1.3 percent by
7:29 a.m. in London, helping to drive the MSCI Emerging Markets
Index higher by 0.7 percent. Eight of the 10 industry groups advanced
on the AsiaPacific gauge that excludes Japanese shares.
The Shanghai Composite Index rose 3 percent to trade almost 12
percent above its recent lows. Property and material shares jumped
after premier Li Keqiang said the nation will increase fiscal support
for shantytown redevelopment. Data today showed that China
basically completed construction of 6.25 million affordable homes in
the first nine months of the year, up from 4.7 million completed
during the same period last year.
The People’s Bank of China has cut the amount of cash lenders must
set aside as reserves three times this year and reduced interest rates
five times since November. Policy makers will lower the reserve ratio
to 17.5 percent in the fourth quarter from 18 percent now, according
to a Bloomberg survey.
http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 3/812/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business China will release export and consumerprice data on Tuesday and Wednesday, respectively. Overseas shipments probably dropped 6 percent last month from a year earlier, while the inflation rate slowed to 1.8 percent, according to the median estimates of Bloomberg surveys. The S&P/ASX 200 Index dropped 0.9 percent in Sydney, after posting its steepest weekly advance since 2011. New Zealand’s S&P/NZX 50 Index climbed 0.9 percent, while the Kospi index in Seoul swung between gains and losses. More than $3 trillion was added to the value of global shares last week as the MSCI AllCountry World Index gained 4.4 percent and a gauge AsiaPacific stocks that includes Japan climbed 5.5 percent. Both advances were the most since December 2011. S&P 500 futures were little changed after the measure ended Friday up 0.1 percent, capping a weekly jump of 3.3 percent, the best performance this year. Alcoa Inc. kicked off the U.S. earnings season last week, slipping on Friday after reporting profit that trailed analysts’ estimates. FTSE 100 Index futures dropped 0.3 percent Monday, while contracts on the Euro Stoxx 50 Index retreated 0.1 percent. The Stoxx Europe 600 Index climbed 4.3 percent last week, the most since July, as investors speculated the Federal Reserve won’t rush to raise rates and commodity producers rallied. http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 4/8
12/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business commodity producers rallied. While acknowledging the volatility in markets due to uncertainty over when the Fed will move, Fischer said the Fed needs to “remain cognizant of the risks ahead.” The job market’s prospects for further improvement look good overall, he said, while noting the last two U.S. payrolls reports were disappointing. Data on retail sales, prices and manufacturing is due out of the U.S. this week. Stocks in New York trade as normal. Currencies The yuan climbed 0.42 percent, the most since March 19, to a two month high of 6.3187 a dollar as of 2:20 p.m. in Shanghai, according to China Foreign Exchange Trade System prices. In Hong Kong’s offshore market, the currency rose 0.32 percent to 6.3183, data compiled by Bloomberg show. Malaysia’s ringgit lost 0.8 percent. The currency jumped 6.9 percent last week, the most since 1998, only beaten in Asia by the Indonesian rupiah, which surged 9.2 percent. http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 5/8
12/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business
Emergingmarket assets have benefited from speculation the
Fed isn't ready to act on rate hikes
Emergingmarket currencies will remain stable or gradually
appreciate “for a while” because there’s not imminent threat of a
Chinese economic collapse, said Geoffrey Barker, a HSBC Holdings
Plc economistturnedhedge fund manager. Investors are exiting
bearish bets in emerging currencies and the roughly $160 million
Counterpoint Asian Macro Fund that Barker, a selfproclaimed
“China bear,” leads made money betting on the recent surge in the
rupiah and ringgit, he said.
The lira weakened as much as 1.8 percent to 2.9638 per dollar, and
was at least 0.4 percent weaker against all 16 major peers. Suspected
suicide bombers killed at least 97 people rallying in the Turkish
capital for a peaceful solution to the country’s struggle with Kurdish
rebels, which has escalated as the country becomes entangled with
the civil war in nearby Syria.
The attack came just three weeks before parliamentary elections,
which are being held Nov. 1 after a ballot in June failed to produce a
majority government, roiling markets. Leaders of the various parties
traded barbs at the weekend over who was to blame for the
explosions.
Commodities
http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 6/812/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business Commodities The Bloomberg gauge of 32 commodities climbed 0.6 percent Monday after capping its biggest weekly surge in more than three years. West Texas Intermediate crude extended its advance, rising for a third day as speculation takes hold that an increase in demand will ease the global glut. WTI added 0.8 percent to $50.03 a barrel, while Brent crude rose 0.7 percent to $52.99. Demand for the commodity will grow and non OPEC supply is due to contract, Abdalla Salem ElBadri, the secretarygeneral of the Organization of Petroleum Exporting Countries said at a conference in Kuwait City on Sunday. Prices have bottomed and there are signs of a recovery in 2016, according to Qatar’s Energy Minister Mohammed Al Sada. Gold for immediate delivery climbed 0.7 percent to $1,164.67 per ounce after climbing 1.5 percent Friday. Copper rose 0.9 percent to $5,339 a metric ton in London, following last session’s 3.1 percent surge, while nickel advanced a fifth straight day, increasing 1.3 percent to $10,640 a ton. Glencore Plc, which halted trading in Hong Kong on Monday, intends to sell two copper mines, Cobar in Australia and Lomas Bayas in Chile, as part of a plan to cut debt by about $10 billion after commodity prices plunged. The uncertainty that’s roiled metal markets has seen Glencore’s shares in London swing wildly in the http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 7/8
12/10/2015 China Stocks Gain With Metals on Stimulus Bets as Ringgit Slides Bloomberg Business past few weeks. Its stock plunged 29 percent on Sept. 28 to a record low on concern weak prices threatened its ability to repay debt. In the two weeks since, the shares have soared. (A reference to U.S. equityindex futures settlement arrangements was corrected in a previous version of this story.) • China • Stocks • Markets • Douglas Robert Gain • Shanghai • Yuan • Stanley Fischer • Standard & Poor's • Labor • Asia From The Web Sponsored Links by Taboola Be Patient: An OilDriven Spending Boom Is Coming The Financialist by Credit Suisse How to Stay in a 5 Star Hotel for Under £100 ? VeryChic.com Is Buffett About To Break His #1 Rule? The Motley Fool Sparta : The Strategy Game Phenomenon of 2015 Sparta Online Game Nicolas BerggruenThe Billionaire's New Institute Of Philosophy And Culture Financial Times PeerToPeer Lending Explainer Business Insider http://www.bloomberg.com/news/articles/20151011/asianfuturestipmoregainsasstimulusoutlookrevivesstocks 8/8
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