Asian Stocks Set for Best Quarter in 3 Years Amid Global Rally

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Asian stocks rose, with the regional benchmark poised for the best quarter in three years as China moved to support economic growth, sending shares higher in the U.S. and Europe and the yen tumbling against the dollar.

The MSCI Asia Pacific Index added 0.6 percent to 147.35 as of 9:01 a.m. in Tokyo, on course for a 6.9 percent quarterly advance, the most since the first three months of 2012. China’s central bank announced measures aimed at stemming a property slump after Governor Zhou Xiaochuan said at the weekend that policy makers can do more to support Asia’s largest economy. The Shanghai Composite Index surged 17 percent this year through yesterday and Japan’s Topix index added 11 percent.

The Topix gained 1.2 percent today after the yen slid 0.8 percent against the dollar on Monday. Australia’s S&P/ASX 200 Index also climbed 1.2 percent and New Zealand’s NZX 50 Index added 0.2 percent. South Korea’s Kospi index rose 0.7 percent.

Futures on the FTSE China A50 Index climbed 1.5 percent in the most recent session. Mainland stock gains this year have been fueled by expectations of central-bank policy easing, optimism the government won’t let economic growth fall below this year’s 7 percent target and as authorities reduced curbs on the property market.

Source : Bloomberg

Euro Weakens as Greek Debt Talks Cloud Outlook Amid Dollar Rally

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The euro dropped after a two-week rally on signs Greece is still a long way from reaching a deal to unlock bailout funds.

The shared currency resumed a slide that has seen it decline against most of its 16 major peers this year as the European Central Bank buys sovereign bonds to support growth and stave off deflation. That contrasts with the U.S. Federal Reserve, which is debating when to raise interest rates for the first time since 2006 amid signs of a strengthening economy.

The euro slid 0.5 percent to $1.0833 at 5 p.m. in New York. It rose 0.3 percent to 130.08 yen.

Japan’s currency declined for the first time in four days versus the dollar as haven demand fell after China’s central bank said the government can do more to support growth. The yen dropped 0.8 percent to 120.07 per greenback.

Greek Prime Minister Alexis Tsipras sought to rally a consensus in parliament for his effort to secure bailout funds after his proposals to bolster the nation’s finances failed to satisfy his European creditors.

Source : Bloomberg

Gold Futures Slump Most in Three Weeks as Investor Demand Wanes

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Gold fell the most in three weeks on signs that investors are balking at the metal even after a recent rally.

Hedge funds cut their net-long position to the lowest since December 2013 and are holding the most short wagers since records begin in 2006, U.S. government data show. Global assets in exchange-traded products backed by gold dropped 56.6 metric tons in March, the most in 15 months. Prices rallied in the previous two weeks on speculation that U.S. interest rates would rise at a slower pace than expected.

Even after Federal Reserve policy makers cut their outlook for where borrowing costs will be by year-end, investors are betting that officials will still lift benchmark rates from near zero fast enough to prevent inflation from surging as the economy rebounds. Gold has historically been used as a hedge against higher consumer prices.

Gold futures for June delivery dropped 1.3 percent to settle at $1,185.30 an ounce at 1:40 p.m. on the Comex in New York, the biggest drop since March 6.

A core measure of consumer prices, which excludes food and fuel, rose 1.4 percent in February from a year earlier, Commerce Department figures showed Monday.

Source: Bloomberg

U.S. Equities Extends Quarterly Advance Amid Corporate Mergers

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U.S. stocks rose, extending a quarterly advance, amid corporate mergers and optimism central banks will support global growth.

The Standard & Poor’s 500 Index advanced 1.2 percent to 2,086.22 at 4 p.m. in New York, maintaining its longest streak of quarterly increases since 1998. With a 0.2 percent advance on Friday, the index completed its first back-to-back gain after 28 days, the longest drought since 1994.

Federal Reserve Chair Janet Yellen said Friday that the central bank will probably raise rates this year, with subsequent increases taking place gradually, without following a predictable path. China’s central bank chief said the government can do more to support growth in the world’s second-largest economy.

First-quarter profits for S&P 500 companies are forecast to decline for the first time since 2009. Companies will see a contraction of 5.8 percent for the three-month period, according to economist estimates compiled by Bloomberg. Earnings growth forecasts for the quarter were positive as recently as January, the data show.

Source: Bloomberg

Europe Stocks Rise Most in Three Weeks on Central-Bank Optimism

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European stocks rose the most in almost three weeks, poised for their best quarter since 2009, amid optimism central banks will continue to support global growth.

The Stoxx Europe 600 Index rose 1.1 percent to 399.84 at the close of trading, extending gains after data showed pending sales of U.S. homes rose more than forecast in February. The benchmark gauge on Friday trimmed its worst weekly loss of the year, buoyed by health-care shares. It’s up 17 percent in 2015.

China’s central bank governor said on Sunday the government can do more to support growth in the world’s second-largest economy. Federal Reserve Chair Janet Yellen said on Friday she expects the central bank to start raising rates this year, with subsequent increases taking place gradually.

Source : Bloomberg