Dollar Extends Yen Gains as Asian Stocks Retreat With Oil

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The dollar climbed, rising to its strongest level in more than seven years versus the yen on divergence in U.S. and Japanese monetary policy. Mining and energy stocks led Asian shares lower amid a rout in iron ore prices and as crude oil extended declines into a fourth day.

The greenback added 0.1 percent to 118.05 yen by 9:27 a.m. in Tokyo, touching its highest level since Aug. 14, 2007 in a sixth day of gains. The Korean won slid, while Japans Topix index added 0.3 percent. The MSCI Asia Pacific Index (MXAP) lost 0.2 percent as BHP Billiton Ltd., the worlds largest mining company, dropped to the lowest since July last year amid a 0.4 percent decline in Australias S&P/ASX 200 Index. U.S. oil fell 0.2 percent as data showed an increase in American supplies. Standard & Poors 500 Index futures were little changed.

Iron ore, Australias biggest export, has slumped to a five-year low on concern demand from China is waning as its economy slows. The HSBC Holdings Plc and Markit Economics China manufacturing index is due today, along with data on factory output in Europe and Japan. While the Bank of Japan is maintaining record stimulus amid a recession there, Federal Reserve meeting minutes issued yesterday showed U.S. policy makers debated their commitment to near-zero interest rates.

Source : Bloomberg

WTI Oil Declines a Fourth Day as U.S. Crude Stockpiles Increase

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West Texas Intermediate dropped for a fourth day as crude inventories rose in the U.S., the worlds biggest oil consumer, and investors weighed the likelihood of OPEC cutting production.

Futures declined as much as 0.4 percent in New York. U.S. crude stockpiles expanded by 2.6 million barrels last week to 381.1 million, according to an Energy Information Administration report. The Organization of Petroleum Exporting Countries should trim excess supply and reduce its production target, Libyas OPEC governor Samir Kamal said yesterday.

Oil has slumped into a bear market as the U.S. pumps at the highest rate in more than three decades amid signs of weakening demand. Leading OPEC members are resisting calls to reduce output as smaller producers such as Venezuela seek action to support prices before the Nov. 27 meeting in Vienna.

WTI for December delivery, which expires today, lost as much as 33 cents to $74.25 a barrel in electronic trading on the New York Mercantile Exchange and was at $74.28 at 10:48 a.m. Sydney time. The more-active January contract slid 23 cents to $74.27. The volume of all futures traded was about 46 percent below the 100-day average. Prices have decreased 25 percent this year.

Brent for January settlement fell 37 cents, or 0.5 percent, to $78.10 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $3.60 to WTI for the same month.

OPEC, which supplies about 40 percent of the worlds oil, pumped 30.97 million barrels a day in October, exceeding its collective output target of 30 million barrels for a fifth straight month, data compiled by Bloomberg show.

Source : Bloomberg

Japan’s Exports Exceed Estimates to Rise Most in Eight Months

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Japans exports rose the most in eight months in October, supporting an economy that fell into recession last quarter.

Overseas shipments rose 9.6 percent from a year earlier, the finance ministry said in Tokyo today, compared with the median estimate for a 4.5 percent increase in a Bloomberg News survey. Imports grew 2.7 percent, leaving a trade deficit of 710 billion yen ($6 billion).

Rising exports will provide support for the economy after Aprils sales tax increase pushed Japan into recession. The nation has posted 28 straight monthly trade deficits as energy import costs surged after all nuclear power plants were shut down in the wake of the Fukushima disaster.

Gross domestic product in the July-September quarter shrank an annualized 1.6 percent, putting the worlds third-biggest economy in its fourth recession since 2008 and pushing Prime Minister Shinzo Abe to delay a further sales tax increase.

The yen traded at 118.11 per dollar at 9:03 a.m. in Tokyo, after earlier touching the lowest level since August 2007. The Topix index of stocks opened 0.6 percent higher.

Source : Bloomberg

Asian Stocks Retreat on Fed Minutes; Japan Shares Climb on Yen

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Asian stocks fell a second day after Federal Reserve minutes showed some U.S. policy makers were concerned about low inflation. Shares in Japan gained as the yen weakened past 118 per dollar.

The MSCI Asia Pacific Index (MXAP) lost 0.1 percent to 139.54 as of 9:04 a.m. in Tokyo after dropping 0.7 percent yesterday. Many Fed officials saw a need to remain attentive to signs of a drop in inflation expectations, according to minutes of the Feds October review released yesterday. Data showed Japans trade deficit narrowed after exports gained 9.6 percent last month from the previous year, the biggest gain in eight months. The yen slid 0.2 percent to 118.15 per dollar, trading near its lowest since August 2007.

South Koreas Kospi index slid 0.3 percent. Australias S&P/ASX 200 Index sank 0.5 percent. New Zealands NZX 50 Index added 0.1 percent. Markets in China and Hong Kong have yet to open. Preliminary data today is expected to show China factory activity slowed from last month.

Hong Kongs Hang Seng Index is heading for its biggest weekly decline since March as buy orders for Shanghai shares through the Hong Kong exchange link slowed to a trickle after the programs debut this week. International investors bought a net 2.6 billion yuan ($424.7 million) of Shanghai shares out of the 13 billion yuan daily limit under the link yesterday, while mainland investors used about 2.4 percent of their 10 billion yuan quota for Hong Kong stocks.

Source : Bloomberg

Japan Topix Rises for Third Day as Yen Touches Seven-Year Low

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Japanese stocks rose, with the Topix headed for a third day of gains, as the yen touched a seven-year low against the dollar after minutes of the Federal Reserve highlighted a divergence in global monetary policy.

The Topix added 0.6 percent to 1,404.81 as of 9:01 a.m. in Tokyo, with all of its 33 industry groups rising. The Nikkei 225 Stock Average gained 0.7 percent to 17,403.86. The yen traded at 118.15 per dollar after slumping to 118.25, its weakest level since August 2007.

The Topix rose the past two days as Prime Minister Shinzo Abe postponed a planned sales-tax increase, called a snap election and ordered his ministers to start preparing a stimulus package after a report this week showed the economy had fallen back into recession. A report today showed exports rose 9.6 percent in October from a year earlier, beating the 6.9 percent estimate of economists surveyed by Bloomberg.

The BOJ yesterday concluded a two-day policy meeting and kept a pledge to expand the monetary base at an annual pace of 80 trillion yen, as forecast by all 31 economists in a Bloomberg News survey.

In the U.S., policy makers weighed their commitment to holding key rates near zero for a œconsiderable time, according to minutes of the Feds October review released yesterday.

Source : Bloomberg