Asia Stocks Advance, Dollar Weakens Before Fed and BOJ

Asian equities rose as Chinese shares surged in Hong Kong and a positive U.S. jobs report helped investors position for a week of central-bank policy decisions. The dollar fell and oil slid for a sixth straight day.

The Hang Seng China Enterprises Index was poised for the biggest jump since November amid easing concern that U.S.-China political tensions will weigh on the yuan. Tokyo shares extended the biggest rally in a month while South Korean equities rose to the highest since May 2015. The dollar fell against most major peers. Oil kept sliding below $50 as U.S. drillers continued to boost activity, countering OPEC’s efforts to drain a global glut. Industrial metals climbed for a second day.

Global equities are trading near a record high as indications of firming growth in the U.S. and Europe coincide with China’s economy showing signs of improvement. U.S. jobs data at the end of last week cleared the way for the Fed to raise interest rates on Wednesday without forcing it to accelerate the pace for future tightening. The euro built on gains from Friday, when European Central Bank policy makers were said to have considered their ability to raise rates before a bond-buying program comes to an end.

Goldman Sachs Group Inc. is joining the rush on Chinese shares, becoming the latest major brokerage to upgrade the market. China’s macroeconomy stabilized in the beginning of 2017, Ning Jizhe, head of the National Bureau of Statistics, said at the sidelines of the annual legislature meeting in Beijing on Sunday. President Donald Trump will likely temper his criticisms of China, including his campaign claim that the country manipulates its currency, Steve Schwarzman, one of his top economic advisers, said Sunday on CNN.

Here are the main market moves:

Stocks

· The MSCI Asia Pacific Index advanced 0.8 percent as of 3:40 p.m. in Tokyo. Japan’s Topix rose 0.2 percent, after the gauge rallied 1.2 percent on Friday to the highest level since December 2015.

· The Hang Seng China Enterprises Index surged 2.1 percent, poised for the biggest jump since Nov. 22.

· The Kospi index jumped 1 percent, led by a 1.1 percent gain in Samsung Electronics Co. Korean shares are extending gains from last week, climbing as President Park Geun-hye’s ouster removes some uncertainty from politics in the nation.

· Australia’s S&P/ASX 200 Index fell 0.3 percent and New Zealand’s S&P/NZX 50 Index rose 0.2 percent.

Currencies

· The South Korean won jumped 1.1 percent. The Australian dollar advanced 0.4 percent, following Friday’s 0.5 percent gain.

· The Bloomberg Dollar Spot Index fell 0.1 percent, after dropping 0.6 percent on Friday. The yen rose 0.2 percent to 114.63 per dollar.

· The euro added 0.3 percent to $1.0703, extending its 0.9 percent surge on Friday.

Bonds

· The yield on 10-year Australian government bonds slid four basis points to 2.94 percent, tracking a rally in Treasuries on Friday.

· The yield on 10-year Treasuries was flat at 2.58 percent, after falling three basis points in the previous session.

Commodities

· Oil dropped 0.8 percent to $48.12 a barrel. Crude has lost almost 10 percent over the past six days, breaking below the $50 a barrel level it had held above since OPEC and 11 other nations started trimming supply on Jan. 1.

· Gold climbed 0.3 percent to $1,208.15, adding to Friday’s 0.3 percent gain.

· Iron ore and zinc led gains in metals, rising more than 2 percent. Copper jumped 1.3 percent.

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