Dollar Near 120 Yen on U.S. Economy, Aussie Declines on GDP Miss

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The dollar rose to a seven-year high versus the yen before economic data this week that analysts predict will back the case for tighter U.S. monetary policy as Japan and Europe push forward with stimulus.

The greenback was 0.2 percent from its strongest in two years against the euro before the European Central Bank meets tomorrow. Australias currency slid after a report showed economic growth was lower than forecast. New Zealands dollar weakened following a drop in milk prices at an auction. Russias ruble and the Norwegian krone fell yesterday as oil resumed a decline. Federal Reserve Vice Chairman Stanley Fischer said yesterday low crude prices are a boon to the U.S. economy.

The dollar was little changed at 119.29 yen at 9:58 a.m. in Tokyo from yesterday, after reaching 119.34, the highest since August 2007. It traded at $1.2387 from $1.2383 in New York. It touched $1.2358 on Nov. 7, the strongest since August 2012. The euro traded at 147.76 yen from 147.63.

The U.S. currency has gained 9.6 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro fell 1.1 percent and the yen dropped 7.3 percent, the biggest decline.

Source: Bloomberg

Gold Trades Below Five-Week High as Dollar Strength Hurts Demand

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Gold held below a five-week high as a strengthening dollar curbed demand for a store of value, with a U.S. policy maker saying the Federal Reserve is getting closer to replacing its vow to hold rates low for a considerable time.

Bullion for immediate delivery rose and fell at least 0.2 percent, and traded at $1,195.88 an ounce at 8:56 a.m. in Singapore from $1,198.28 yesterday, when prices fell 1.1 percent, according to Bloomberg generic pricing. The metal on Dec. 1 slumped to a three-week low of $1,142.88, before rallying to $1,221.43, the highest level since Oct. 30, as oil whipsawed.

Gold is 0.5 percent lower this year after losing 28 percent in 2013 as the Fed considers raising borrowing costs while other central banks take steps to spur growth. Policy makers at the European Central Bank and Bank of England meet tomorrow, and the Federal Open Market Committee gathers Dec. 16-17.

Gold for February delivery fell 0.2 percent to $1,196.80 an ounce on the Comex, dropping for a second day. Futures slumped to a three-week low of $1,141.70 on Dec. 1 after Swiss voters rejected a plan for their central bank to acquire bullion.

Silver for immediate delivery lost 0.3 percent to $16.4279 an ounce after sinking to a five-year low of $14.4235 on Dec. 1. Platinum traded at $1,215.17 an ounce from $1,216.50, and palladium rose 0.3 percent to $804.50 an ounce.

Source: Bloomberg

Asian Stocks Follow U.S. Equities Higher as Yen Holds Decline

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Asian stocks advanced for a second day, following U.S. equities higher, as Japans Topix index rallied on a weaker yen and investors weighed the impact of a slump in oil prices on the global economic outlook.

The MSCI Asia Pacific Index climbed 0.2 percent to 140.25 as of 9:01 a.m. in Tokyo, with twice as many stocks rising as falling. The Topix added 0.4 percent as Japans currency held yesterdays 0.7 percent drop. U.S. shares rallied with the greenback yesterday as a report showed construction spending rose more than forecast in October.

South Koreas Kospi index was little changed. Australias S&P/ASX 200 Index advanced 0.7 percent, while New Zealands NZX 50 Index added 0.3 percent. Singapore Exchange Ltd. delayed the start of trading in the city-states securities market by 3 1/2 hours today, citing a software error.

Oil resumed declines yesterday, with West Texas Intermediate futures sinking 3.1 percent, after the Iraqi government and Kurdish authorities reached an agreement that paves the way for increased oil exports. WTI rebounded 1.1 percent today to $67.62 a barrel.

Futures on the Standard & Poors 500 Index were little changed. The measure advanced 0.6 percent yesterday as biotechnology and energy companies rallied and data on construction spending boosted confidence in the economy. The governments labor report later this week may show companies added 230,000 payrolls in November while the unemployment rate held at 5.8 percent, according to the consensus forecast of economists.

Futures on Hong Kongs Hang Seng Index rose 0.1 percent in their most recent trading session, and contracts on the Hang Seng China Enterprises Index climbed 0.3 percent.

Source: Bloomberg

Japan Stocks Rise for Fourth Day as Topix Extends Six-Year High

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Japanese stocks rose a fourth day, with the Topix index poised to extend its highest close since 2007, as exporters advanced after the yen weakened and brokerages led gains.

The Topix added 0.4 percent to 1,433.98 as of 9:07 a.m. in Tokyo, heading for its highest close since Dec. 28, 2007. All but five of its 33 industry groups climbed. The Nikkei 225 Stock Average increased 0.6 percent to 17,760.39. The yen held at 119.19 per dollar after falling 0.7 percent yesterday. U.S. shares rose yesterday as data showed strong construction spending and car sales. West Texas Intermediate crude futures rebounded 1.1 percent today after sliding 3.1 percent yesterday.

The Standard & Poors 500 Index climbed 0.6 percent yesterday. Futures on the measure were little changed today.

Source: Bloomberg

U.S. Stocks Rise Amid Economic Optimism as Biotech, Energy Rally

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U.S. stocks rose, sending the Standard & Poors 500 Index to its best day since October, as biotechnology and energy companies rallied and data on construction spending boosted confidence in the economy.

Biogen Idec Inc. led gains in health-care shares after its Alzheimers drug showed promising early results. Energy shares climbed 1.3 percent even as oil resumed a selloff. Genworth Financial Inc. slid 5.8 percent as JPMorgan Chase & Co. cut its price target on the shares.

The S&P 500 rose 0.6 percent to 2,066.50 at 4 p.m. in New York. The Dow Jones Industrial Average added 100.95 points, or 0.6 percent, to an all-time high of 17,877.75. The Russell 2000 Index of small companies jumped 1.3 percent, after dropping 1.6 percent yesterday.

The S&P 500 fell 0.7 percent yesterday, the most since Oct. 22, as weaker data on Black Friday sales and China manufacturing overshadowed a rebound in oil prices and expansion in American factories.

Source : Bloomberg