Stocks Advance on Upbeat Economic Data

Stocks climbed in Asia after Japanese corporate earnings, Chinese manufacturing and South Korean export data reinforced confidence in global growth.

Equity indexes from Tokyo to Sydney gained with raw-material producers adding to the recent rally. West Texas Intermediate crude traded above $50 a barrel for the first time since May and copper was at a two-year high. The Australian dollar fell below 80 U.S. cents, before recovering, after the central bank left rates unchanged and said the higher exchange rate is expected to contribute to subdued price pressures. The dollar held onto declines triggered by fresh political turmoil in Washington.

Global equities remain near all-time highs, with data this week from China and Japan reinforcing optimism for growth after figures on Friday showed the U.S. economy accelerating in the second quarter. South Korea’s exports jumped 20 percent in July from a year earlier, topping expectations, as strong global demand continues to underpin the nation’s economy. Washington remains a fixation of traders, with President Donald Trump ousting communications director Anthony Scaramucci after just 10 days on the job.

The Reserve Bank of Australia held the benchmark at 1.5 percent while warning that a rising currency is expected to subdue inflation and weigh on the outlook for growth and employment.

Meanwhile, the slew of corporate earnings continues. Mitsubishi UFJ Financial Group Inc., Apple Inc., Tesla Inc., Berkshire Hathaway Inc. and Toyota Motor Corp. are all set to unveil results this week.

Here are the main moves of the day:

Stocks

· Japan’s Topix index added 0.5 percent. Banks advanced after Sumitomo Mitsui Financial Group Inc. reported a 31 percent increase in net income for the June quarter, while Nitto Denko Corp. raised its net-income forecast after first-quarter earnings beat estimates. Australia’s S&P/ASX 200 Index was up 0.7 percent. South Korea’s Kospi index added 1.1 percent. The Hang Seng Index in Hong Kong rose 0.8 percent, while the Shanghai Composite Index climbed 0.4 percent.

· Futures on the S&P 500 were up 0.2 percent as of 12:43 p.m. in Tokyo after the underlying gauge slipped 0.1 percent on Monday, posting a third day of losses. A low-volume U.S. session saw the S&P 500 Index fluctuate, while the Dow Jones Industrial Average eked out a fresh record high.

· The MSCI Asia Pacific Index climbed 0.7 percent after it advanced for a seventh month in July.

Currencies

· The Bloomberg Dollar Spot Index was little changed. It fell 0.3 percent on Monday to complete its fifth-straight monthly drop.

· The euro slipped 0.1 percent to $1.1826 after surging 0.8 percent on Monday.

· The yen rose 0.1 percent to 110.16 per dollar, having climbed 1.9 percent in July.

Bonds

· The yield on 10-year Treasuries was steady at 2.30 percent.

· The Australian 10-year government note saw yields at 2.71 percent.

Commodities

· West Texas Intermediate crude added 0.2 percent to $50.28 a barrel, following six days of gains.

· Copper rose 0.2 percent to $6,379.50 a metric ton, extending a gain on Monday when the the metal capped its biggest monthly advance since January as demand held up in China and labour disputes and declining ore grades crimped supply.

Source: Bloomberg

The information provided here has been produced by a third party and does not reflect the opinion of Vipro Markets. Vipro Markets has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and therefore should not be relied upon as such. The Information is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. We advise any readers of this content to seek their own advice. Reproduction or redistribution of this information is not permitted.

Vipro Markets Review