Japanese Stocks Rise After Global Rally as Central Bank Meets

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Japanese stocks rose following a global rally as the central bank began a two-day meeting and investors assessed the impact of an historic accord to ease trade in goods and services among a dozen Pacific-rim nations.

The Topix index added 1.4 percent to 1,484.59 as of 9:01 a.m. in Tokyo, rising for a fifth day. The Nikkei 225 Stock Average climbed 1.5 percent to 18,726.19. U.S. stocks staged the longest rally of the year, while a benchmark gauge of equities in Europe jumped to the most since August. The yen traded at 120.47 per dollar as central bank policy officials began deliberations on monetary policy, with an announcement due tomorrow.

Only two of 36 economists forecast the Bank of Japan will expand monetary stimulus Wednesday, according to a Bloomberg News survey conducted last week. Fifteen expected easing at the following meeting on Oct. 30.

Source : Bloomberg

Asian Futures Tip More Stock Gains as Rate Outlook Fuels Rebound

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The global stock rally that saw U.S. equities cap their longest advance this year looked set to continue in Asia, with index futures from Japan to Hong Kong signaling further gains. The dollar and the yen maintained losses.

Futures on stock gauges in Tokyo and Seoul climbed more than 1 percent in recent trade, with speculation the Federal Reserve will hold off raising interest rates until 2016 boosting riskier assets, and helping the Standard & Poor’s 500 Index to its fifth day of gains. Australia’s dollar hovered near a two-week high before the central bank there reviews already record-low borrowing costs, while U.S. oil held above $46 a barrel.

Stocks have been rallying since capping their worst quarter in four years, as unexpected weakness in the U.S. labor market pushes out the probable timeline for rate increases. Odds the Federal Reserve will pull the trigger on tightening this month have fallen to 10 percent, suppressing the dollar while bolstering assets in emerging and riskier markets that have benefited from the era of cheaper money. Global equity values have climbed back above $60 trillion this month after almost $10 trillion was erased last quarter.

Futures on Japanese indexes foreshadowed similar gains for stocks there, with contracts on the Nikkei 225 Stock Average bid up 1.4 percent in the Osaka pre-market, to 18,320. Yen-denominated futures on the index traded in Chicago dropped 0.2 percent to 18,330 after jumping 2.7 percent in the previous session.

In Australia, where markets didn’t settle Monday, the S&P/ASX 200 Index surged of 1.2 percent Tuesday, while futures on South Korea’s Kospi index added 1.1 percent. New Zealand’s S&P/NZX 50 Index, the first major stock gauge to start trading each day in the Asia-Pacific region, climbed 0.7 percent in a third day of gains.

Futures on Hong Kong’s Hang Seng Index increased 1.2 percent in recent trading, rising with contracts on the Hang Seng China Enterprises Index, a gauge of mainland equities listed in the city. Mainland Chinese markets remain closed through Wednesday for the week-long National Day holidays.

Source : Bloomberg

Dollar Pauses Before U.S. Jobs Data as Stocks Dictate Flows

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The dollar held losses against developed-market peers amid concern that a weak U.S. payrolls number following a report showing manufacturing stagnated could scupper an interest-rate increase by the Federal Reserve this year.

The greenback weakened Thursday after gains last month and in the third quarter as investors prepared for Friday’s September employment report. Anemic demand from China meant fewer factory orders in the U.S. in September, causing the Institute for Supply Management’s factory index to fall its lowest level since May 2013. A measure of global equities has dropped about 4 percent since Fed Chair Janet Yellen refrained from increasing rates on Sept. 17, citing international uncertainty and tepid inflation.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was at 1,211.88 as of 9:48 a.m. in Tokyo from 1,212.41 in New York, headed for a 0.2 percent weekly decline. The index gained 0.6 percent in September and 2.8 percent during the third quarter.

Source : Bloomberg

Gold Poised for Biggest Weekly Loss Since July Before Jobs Data

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Gold headed for the biggest weekly decline in more than two months as investors looked to the U.S. nonfarm payrolls report Friday for signals on the strength of the economy, which will help determine when the Federal Reserve raises interest rates.

Bullion for immediate delivery was at $1,113.13 an ounce at 8:43 a.m. in Singapore from $1,113.61 Thursday, according to Bloomberg generic pricing. Prices fell 2.9 percent this week, the most since the five days ended July 24.

The jobs data will be scrutinized for signs of whether China’s slowdown and the steepest quarterly rout in global stocks since 2011 have shaken the U.S. recovery. The Labor Department report is projected to show payroll gains accelerated last month compared with August. Gold fell for five straight quarters through Sept. 30 as the prospect of higher rates reduced the metal’s appeal because it doesn’t pay interest.

Source: Bloomberg