Dollar Near Two-Month High Versus Yen on Bets Fed to Raise Rates

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The dollar was near a two-month high versus the yen amid speculation key jobs data on Friday will add to signs the U.S. economy is ready for an interest-rate increase.

Japan’s currency was the second-biggest loser among major currencies against the greenback on Wednesday, after a U.S. report showed service providers expanded in July at the strongest pace in a decade. Friday’s figures are projected to show employers added more than 200,000 jobs for a third month in July. New Zealand’s dollar hit a six-year low in New York.

The dollar was little changed at 124.81 yen as of 9:16 a.m. in Tokyo, after rising to 125.01 on Wednesday, its highest since June 8. It was at $1.0913 from $1.0906 per euro.

The Bloomberg Dollar Spot Index was at 1,216.71 from 1,217.04 in New York, where it climbed to as high as 1,219.31, the most since March 16. The gauge, which tracks the greenback against 10 major peers, climbed Wednesday after the Institute for Supply Management’s non-manufacturing index jumped by 4.3 points to 60.3, the most since August 2005.

Source: Bloomberg

Gold Bears Return as Traders Look to September for Rate Increase

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The gold bears are back on the prowl.

Futures in New York fell for the second time in three days amid mounting speculation that a resilient U.S. economy will allow the Federal Reserve to raise interest rates as soon as September. Prices extended declines as a private report showed that American service industries in July expanded at the strongest pace in a decade.

Gold tumbled to a five-year low in late July on the outlook that the Fed will start tightening monetary policy. Higher rates curb the appeal of bullion because it doesn’t pay interest or offer returns, unlike competing assets. Money managers have stayed net-short on the metal for two straight weeks, and banks including Goldman Sachs Group Inc. predict more declines for prices.

On the Comex, gold futures for December delivery fell 0.5 percent to settle at $1,085.60 at 1:44 p.m. in New York. The metal reached a five-year low of $1,073.70 on July 24.

Source : Bloomberg

Asian Stocks Advance as U.S. Data Boost Confidence, Weaken Yen

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Asian stocks rose, following a rebound in global shares, amid optimism over the American economy. Japanese equities climbed as the yen weakened.

The MSCI Asia Pacific Index gained 0.4 percent to 141.64 as of 9:02 a.m. in Tokyo. The Standard & Poor’s 500 Index advanced 0.3 percent on Wednesday as data showed the fastest pace of U.S. service-sector growth in a decade. Japan’s Topix index added 0.9 percent as the yen traded at 124.80 per dollar after three days of declines.

Traders are bolstering bets the Federal Reserve will raise interest rates before the year is out as the economy appears firmly in recovery mode. Interest-rate futures showed the chances of a Federal Reserve rate increase next month reached 48 percent Thursday, up from 38 percent earlier this week.

Australia’s S&P/ASX 200 Index was little changed, while New Zealand’s NZX 50 Index rose 0.2 percent. South Korea’s Kospi index advanced 0.4 percent.

Hong Kong-traded stocks are poised to gain, with futures on the Hang Seng Index climbing 0.5 percent and contracts on the Hang Seng China Enterprises Index, which tracks mainland shares listed in the city, rising 0.4 percent. FTSE China A50 Index futures advanced 0.1 percent in Singapore, while those on the Shanghai Shenzhen CSI 300 Index dropped 1.6 percent.

Chinese stocks traded in the U.S. rose a second day Wednesday, with the Bloomberg China-US Equity Index up 1 percent. The Shanghai Composite Index lost 1.7 percent on Wednesday after changing direction more than 10 times. Volumes on the index are falling amid concern government intervention designed to prevent another stock rout is driving away investors.

Source : Bloomberg

Japan Stocks Rise for Second Day as Yen Weakens After U.S. Data

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Japanese stocks rose for a second day after the yen weakened against the dollar amid better-than-estimated U.S. economic data and as investors weigh company earnings.

The Topix index added 0.8 percent to 1,679.92 as of 9:01 a.m. in Tokyo, with all but three of its 33 industry groups rising. The Nikkei 225 Stock Average climbed 0.7 percent to 20,756.69. The yen traded at 124.79 per dollar after weakening 0.4 percent on Wednesday, a third day of losses, as services-industry data indicated the U.S. economy is on track for faster growth, raising prospects for an interest-rate hike next month.

More than 160 firms on the Topix index report earnings on Thursday. Of the companies that have reported quarterly results this season and for which estimates are available, 63 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg.

Source: Bloomberg

U.S. Stocks Rise Amid Tech Earnings, Stronger Services Growth

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U.S. stocks rose for the first time in four days, amid better-than-estimated earnings from technology companies while services-industry data indicated the economy is on track for faster growth.

The Standard & Poor’s 500 Index rose 0.3 percent to 2,099.91. at 4 p.m. in New York, after slipping 0.7 percent over the previous three sessions.

Investors are watching economic reports to gauge when the Federal Reserve will increase interest rates, a decision it has forecast for this year. Data today showed service providers from restaurants to real estate agencies expanded in July at the strongest pace in a decade, putting the U.S. economy on track for faster growth.

 A separate report Wednesday from ADP Research Institute said companies added fewer workers than expected to payrolls in July, casting doubt on whether labor-market gains can accelerate beyond this year’s current pace. The government’s monthly job report on Friday is projected to show employers took on 225,000 workers last month, while the jobless rate held at a seven-year low of 5.3 percent.

Source: Bloomberg