China Stocks Rise for Second Day as State Buying Seen Continuing

---

China stocks rose for a second day amid speculation the government has resumed its intervention in the equities market.

The Shanghai Composite Index climbed 1.4 percent to 3,125.45 at 9:34 a.m., paring this week’s loss to 11 percent. The benchmark index rallied 5.3 percent on Thursday with all of the gains coming in the last 45 minutes of trading. PetroChina Co. led a rally for energy producers after crude futures soared 10 percent in New York on Thursday. The offshore yuan rose after the central bank boosted the currency’s reference rate by the most in five months.

Policy makers want to stabilize equities before a Sept. 3 military parade celebrating the 70th anniversary of the World War II victory over Japan, said two of the people, who asked not to be identified because the move wasn’t publicly announced. The shift followed the absence of state buying earlier this week.

The Shanghai Composite has fallen 40 percent since the June peak amid concern the government has scaled back efforts to prop up equities and the deepning economic slowdown will hurt corporate profits. Data on Friday showed industrial companies’ profits slid for a second month, dropping 2.9 percent in July.

Source : Bloomberg

China Stock-Index Futures Rise as State Buying Seen Continuing

---

China stock-index futures rose amid speculation the government has resumed its intervention in the equities market.

CSI 300 futures for September jumped 4 percent at 9:15 a.m. local time, before the release of industrial companies’ profits. The central bank raised the yuan reference rate by 0.15 percent to 6.3986 per dollar on Friday morning, the most since March.

The Shanghai Composite Index rallied 5.3 percent to 3,083.59 on Thursday, with all of the gains coming in the last 45 minutes of trading amid speculation state funds have resumed buying. The benchmark gauge has lost 12 percent this week.

Policy makers want to stabilize equities before a Sept. 3 military parade celebrating the 70th anniversary of the World War II victory over Japan, said two of the people, who asked not to be identified because the move wasn’t publicly announced. The shift followed the absence of state buying earlier this week.

The intervention to prop up shares is part of a broader effort to ensure nothing detracts from the parade, an event the government will use to demonstrate its rising military and political might. The parade has been planned for months and will provide President Xi Jinping his first opportunity to publicly present himself to the world as China’s commander in chief.

The Shanghai Composite has fallen 40 percent since the June peak amid concern the government has scaled back efforts to prop up equities and the economic slowdown was deepening.

China Securities Finance may have applied for 1.4 trillion yuan ($219 billion) of borrowing in the interbank market, Caixin reported, citing unidentified bank officials. The government should adopt a proactive fiscal policy and further ease monetary policy, the Economic Daily wrote in a front-page commentary.

Source : Bloomberg

Asian Stocks Rise as U.S. Economy Grows Faster Than Forecast

---

Asian stocks rose for a third day as a global rally gathered pace and the U.S. economy grew faster than expected in the second quarter.

The MSCI Asia Pacific Index gained 0.4 percent to 129.32 as of 9:01 a.m. in Tokyo. The gauge, which began this week with a two-day 5.1 percent slump, has rallied the past three days. Futures contracts indicated Chinese markets will continue a rebound, with contracts on the FTSE China A50 Index gaining 2.3 percent and those on the Hang Seng China Enterprises Index rising 1.8 percent.

Data on Thursday showed U.S. gross domestic product rose at a 3.7 percent annualized rate, exceeding all estimates of economists surveyed by Bloomberg, and up from the 2.3 percent reported last month. A separate report showed filings for jobless benefits declined to a three-week low.

The data come as Federal Reserve policy makers debate whether growth is strong enough to withstand the first increase in the interest rate since 2006. Central bankers gather at Jackson Hole, Wyoming, for a discussion on inflation just as China’s slowdown renews fears of falling prices. Fed Chair Janet Yellen won’t attend this year.

Source : Bloomberg

Oil Advances as U.S. Crude Inventories Unexpectedly Decrease

---

Oil advanced as U.S. government data showed crude stockpiles unexpectedly fell in the world biggest oil consumer.

Futures climbed as much as 1.6 percent in New York, paring losses after a 1.8 percent drop on Wednesday. Inventories fell by 5.45 million barrels to 450.8 million, according to an Energy Information Administration report, compared with an increase of 1.45 million forecast in a Bloomberg survey. The nation’s output slipped for a third week, the EIA said.

Oil has fluctuated below $40 a barrel this week amid volatility in global financial and commodity markets on concern China’s fuel demand will falter. Crude is still down more than 35 percent from this year’s closing peak in June on signs the global glut will be prolonged as leading OPEC members sustain production and U.S. crude stockpiles remain about 90 million barrels above the five-year seasonal average.

West Texas Intermediate for October delivery rose as much as 61 cents to $39.21 a barrel on the New York Mercantile Exchange and was at $39.03 at 8:43 a.m. Sydney time. The contract slid 71 cents to $38.60 on Wednesday. The volume of all futures traded was about 47 percent below the 100-day average. Prices have decreased 27 percent this year.

Brent for October settlement lost 7 cents, or 0.2 percent, to $43.14 a barrel on the London-based ICE Futures Europe exchange on Wednesday. The European benchmark crude ended the session at a premium of $4.54 to WTI.

Source : Bloomberg