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Thursday, October 6, 2011

Philippine Markets: 6 October 2011

06 October  2011
USD/PhP:    43.86 - 0.22            PSEi:       3890.52     + 67.39
USD/JPY:    76.66             PFINC:              881.56           +  0.89
EUR/USD:    1.3317                  BDO:                 47.85          +
0.20
GBP/USD:    1.5476                  BPI:           54.15           -   0.30
PDSTF3M:    2.9654                  MBT:           62.50     +  0.50
Prices as of  4:00pm                Source: Bloomberg, Reuters
Asia Stocks Rise First Day in Five on European, U.S. Optimism
2011-10-06 06:22:35.421 GMT
By Shani Raja and Yoshiaki Nohara
    Oct. 6 (Bloomberg) -- Asian stocks rose for the first time
in five days as better-than-expected U.S. economic data and
optimism European leaders will contain the region’s debt crisis
boosted the earnings outlook for exporters.
    Sony Corp., Japan’s No. 1 exporter of consumer electronics,
advanced 4.7 percent in Tokyo. Cathay Pacific Airways Ltd.,
Asia’s largest international carrier, jumped 7.1 percent in Hong
Kong. James Hardie Industries SE, a building-materials supplier
that gets almost 70 percent of its sales from the U.S., climbed
8.2 percent Sydney. BHP Billiton Ltd., the No. 1 global mining
company, gained 3.3 percent as commodity prices advanced.
    The MSCI Asia Pacific Index rose 2.8 percent to 110.36 as
of 3:13 p.m. in Tokyo. About seven stocks advanced for each that
fell and all 10 industry groups climbed, led by commodity
producers and banks. The gauge tumbled 16 percent in the third
quarter, the biggest drop since 2008, amid concern that Europe’s
debt crisis and a U.S. economic slowdown will drag the world
back into recession.
    “The market is a bit more optimistic about prospects for
European policy makers to find a solution, particularly with the
solvency of European banks,” said Tim Schroeders, who helps
manage $1 billion in equities at Pengana Capital Ltd. in
Melbourne. The latest U.S. data is “a good sign” that the
economy is stabilizing, he said.
    Japan’s Nikkei 225 Stock Average gained 1.7 percent. South
Korea’s Kospi Index added 2.6 percent. Hong Kong’s Hang Seng
Index climbed 4.5 percent and is headed for its biggest gain in
more than two years. Australia’s S&P/ASX 200 advanced 3.7
percent, the biggest increase since December 2008.
                        U.S. Reports
    Futures on the Standard & Poor’s 500 Index gained 0.1
percent today, erasing losses of as much as 0.4 percent. The S&P
500 climbed 1.8 percent yesterday in New York, increasing for a
second day, after a report from ADP Employer Services showed U.S.
companies added 91,000 jobs in September and the Institute for
Supply Management’s non-manufacturing index fell less than
forecast. Nasdaq-100 Index futures rebounded to rise 0.2 percent
after falling when Apple Inc. said co-founder Steve Jobs died
today. He was 56.
    “The market sentiment is too pessimistic about the U.S.
economy, which hasn’t become that bad,” said Mitsushige Akino,
who oversees about $600 million in Tokyo at Ichiyoshi Investment
Management Co. “We can expect a rebound of stocks.”
    The International Monetary Fund said European Union
officials are working on plans to boost bank capital. France and
Belgium said a “bad bank” will be set up to hold Dexia SA’s
troubled assets.
                      Last Resort
    German Chancellor Angela Merkel said Europe’s rescue fund
will only be used as a last resort to save banks and that
investors may have to take deeper losses as part of a Greek
rescue.
    HSBC Holdings Plc, Europe’s biggest lender by market value,
gained 2.5 percent to HK$58.05 in Hong Kong, while National
Australia Bank Ltd., the nation’s largest lender to businesses,
surged 5 percent to A$22.87 in Sydney.
    Sony advanced 4.7 percent to 1,470 yen in Tokyo. Li & Fung
Ltd., a supplier of clothes and toys to retailers including Wal-
Mart Stores Inc., increased 3.8 percent to HK$12.02 in Hong Kong.
Cathay Pacific climbed 7.1 percent to HK$12.72 in Hong Kong,
while in Sydney, James Hardie rose 8.2 percent to A$5.84.
    Samsung Electronics Co. increased 1.5 percent to 855,000
won in Seoul and LG Electronics Inc. surged 6.3 percent to
73,900 won on optimism South Korea’s two largest electronics
makers will gain market share against Apple.
                      Commodity Shares
    Asian commodity stocks also rallied. BHP Billiton gained
3.3 percent to A$36.30 in Sydney and rival Rio Tinto Group
climbed 4.9 percent to A$63.28. Korea Zinc Co., which produces
metals including zinc, lead and gold, jumped 6 percent to
246,000 won in Seoul. Cnooc Ltd., China’s largest offshore
energy explorer, surged 8.6 percent to HK$12.32.
    Crude oil for November delivery gained 5.3 percent on the
New York Mercantile Exchange yesterday after the U.S. government
reported an unexpected stockpile decline in the world’s biggest
crude-consuming country. The Thomson Reuters/Jefferies CRB Index
of raw materials advanced 1.9 percent yesterday.
    The MSCI Asia Pacific Index declined 22 percent this year
through yesterday, compared with a 9 percent drop by the S&P 500
and a 19 percent loss by the Stoxx Europe 600 Index. Stocks in
the Asian benchmark are valued at 10.9 times estimated earnings
on average, compared with 11.5 times for the S&P 500 and 9.4
times for the Stoxx 600.

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