Asian Stocks Advance Most in Six Weeks Amid Global Equity Rally

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Asian stocks headed for their largest advance in six weeks amid a global equity rally that sent U.S. equities surging. Japans Topix index jumped on a weaker yen ahead of a central bank policy decision.

The MSCI Asia Pacific Index climbed 1.1 percent to 136.17 as of 9:08 a.m. in Tokyo, trimming its weekly decline to 0.7 percent, while the Topix added 2 percent. BOJ Governor Haruhiko Kuroda is expected to keep policy on hold today in Tokyo. The Standard & Poors 500 Index posted its largest two-day gain in three years as the Federal Reserves pledge to be patient on boosting rates overshadowed concern over a slide in oil and Russias currency.

South Koreas Kospi index climbed 1.1 percent. Australias S&P/ASX 200 Index gained 1.6 percent, while New Zealands NZX 50 Index rose 0.4 percent.

Source : Bloomberg

Japan Stocks Rise a Second Day as Fed Sparks Global Equity Rally

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Japanese stocks jumped for a second day after U.S. equities posted the biggest two-day rally in three years amid rising confidence about the global economic outlook after the Federal Reserve pledged patience on interest rates.

The Topix added 1.6 percent to 1,398.85 as of 9:01 a.m. in Tokyo, paring its loss this week to less than 0.1 percent. All of its 33 industry groups rose. The Nikkei 225 Stock Average surged 1.7 percent to 17,498.95. The Bank of Japan reports on monetary policy today two months after unexpectedly boosting stimulus amid a recession in Asias second-largest economy.

The BOJ completes a two-day meeting today with 33 economists surveyed by Bloomberg News forecasting it will maintain the expansion of its monetary base at an annual pace of 80 trillion yen ($676 billion).

Prime Minister Shinzo Abes government will budget about 3.5 trillion yen for measures meant to rekindle economic growth, bringing more fiscal firepower to bear on Japans slump than previously expected, the Nikkei reported today. Cabinet will approve the stimulus package as early as Dec. 27. It was originally expected to be worth between 2 trillion yen and 3 trillion yen.

The Standard & Poors 500 Index jumped 2.4 percent in New York yesterday, capping a two-day gain of 4.5 percent, the most since November 2011. Futures on the S&P 500 were little changed today.

Source : Bloomberg

S&P 500 Caps Best Two-Day Gain Since 2011 Amid Global Rally

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U.S. stocks rose, sending the Standard & Poors 500 Index to its best two-day gain in three years, as global equities rallied on the Federal Reserves pledge to be patient on boosting rates.

The S&P 500 added 2.4 percent to 2,061.14 at 4 p.m. in New York, its largest one-day gain since January 2013. The index has climbed 4.5 percent over two days, the most since November 2011.

The MSCI All-Country World Index soared 2 percent and emerging-market stocks surged 1.8 percent. The Stoxx Europe 600 Index advanced 3 percent, the most in three years. Treasuries sank the most in 17 months. Oil slumped 3.2 percent after wiping out a 4 percent rally.

The Chicago Board Options Exchange Volatility Index lost 13 percent to 16.95. The VIX has plunged 28 percent over two days. The index climbed to a two-month high on Dec. 16.

U.S. stocks are rebounding from a seven-day decline that erased $1 trillion from equity prices and coincided with a 15 percent drop in West Texas Intermediate crude between Dec. 5 and Dec. 16. S&P 500 energy producers tumbled 8 percent over the stretch while chemical and mining companies lost 7.4 percent.

Source : Bloomberg

Gold Trades Near Two-Week Low as Fed Comments Boost Rates View

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Gold held near a two-week low after U.S. policy makers dropped a pledge to keep borrowing costs low for a œconsiderable time, moving the Federal Reserve closer to raising rates for the first time since 2006 as the dollar rose.

Bullion for immediate delivery traded at $1,189.78 an ounce at 8:21 a.m. in Singapore from $1,189.71 yesterday, when prices fell to $1,183.89, the lowest since Dec. 1, after the Feds change, according to Bloomberg generic pricing.  The metal is set to snap two weeks of gains as slumping energy prices threatened to push inflation further below the U.S. central banks 2 percent target.

Chair Janet Yellen said the Fed is unlikely to move before the end of April after policy makers replaced the considerable-time pledge with a promise to be œpatient. That sent the Bloomberg Dollar Index toward a five-year high and the Standard & Poors 500 Index up by the most since October 2013. Data yesterday showed that U.S. consumer prices rose 1.3 percent, the smallest gain since February with oil at five-year lows.

While the Feds statement made no reference to the Russian currency crisis or other global risks that have roiled financial markets, Yellen said the potential spillover from Russia on the U.S would be small. The ruble fell to a record this week even as the Russian central bank raised interest rates, spurring speculation that the country may sell some of its gold reserves.

Source : Bloomberg