By Shani Raja and Nicolas Johnson
Dec. 23 (Bloomberg) -- European and Asian stocks rose and the dollar traded near a three-month high against the euro and oil climbed above $74 a barrel on signs economies around the world are improving.
The Dow Jones Stoxx 600 Index added 0.6 percent as of 8:58 a.m. in London and the MSCI Asia Pacific excluding Japan Index climbed 0.9 percent. The dollar was unchanged at $1.4249 versus the euro from yesterday’s close in New York. Japanese markets were closed for a holiday.
A measure of risk in emerging-market bonds narrowed to the lowest level in 16 months as confidence in a global recovery increased. Consumer spending in the U.S. probably rose in November for the sixth time in seven months as households took advantage of holiday discounting, while China’s biggest brokerage said the nation’s growth may surge to as much as 12 percent next year.
“The recent data indicate the global economy is recovering faster than originally expected,” said Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management in Sydney. “It’s too early to say whether the recovery is self- sustaining, but we should know towards the end of first quarter 2010.”
Crude oil for February delivery climbed to $74.64 in electronic trading on the New York Mercantile Exchange. Prices closed at $74.40 yesterday, the highest settlement since Dec. 4.
Gold gained as much as 0.4 percent to $1,088.72 per ounce, after falling the past two days as a rebounding dollar reduced demand for the precious metal.
U.S. Futures Climb
Futures on the Standard & Poor’s 500 Index added 0.2 percent. The benchmark U.S. stock index climbed 0.4 percent yesterday to its highest close since October 2008, after the report on November home sales and as a profit forecast by Jabil Circuit Inc. triggered gains in technology shares.
U.S. 10-year government bond yields traded near the highest level in four months. U.S. debt yesterday completed the steepest back-to-back decline since July following the housing report.
“The more stable data trend is supporting a turnaround in the dollar; increasing the odds that the Fed will be thinking about edging policy rates out of their emergency setting at some stage next year,” Greg Gibbs, a strategist at Royal Bank of Scotland Group Plc in Sydney, wrote in a note to clients.
South Korea’s won led declines among Asia-Pacific emerging- market currencies, approaching a seven-week low. The Thai baht fell to its low for the month and Malaysia’s ringgit traded near its weakest level since October. The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, climbed to a three-month high.
‘Downward Pressure’
“Asian currencies continue to be under some downward pressure because of the strength of the dollar in global markets,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets Ltd. in Hong Kong.
All major stock markets in the Asia-Pacific Region climbed, led by increases of 2.7 percent in India, 1.1 percent in Hong Kong, 1 percent in New Zealand and 0.8 percent in Australia.
Macarthur Coal Ltd., the world’s biggest exporter of pulverized coal used by steelmakers, climbed 5.6 percent in Sydney after Macquarie Group Ltd. said Hong Kong’s Noble Group Ltd. may be planning a bid. Gloucester Coal Ltd. jumped 28 percent after receiving a takeover offer from Macarthur and Noble advanced 4.7 percent, leading gains in Singapore’s benchmark stock index.
European Stocks
The MSCI Asia Pacific ex-Japan index has risen 62 percent this year, on course for its steepest annual increase since 1993, as central banks worldwide reduced borrowing costs and governments boosted spending to shore up their economies.
Europe’s Dow Jones Stoxx 600 rose to a 14-month high, ahead of the U.S. consumer spending report. DSG International Plc, the U.K.’s biggest consumer-electronics retailer, added 1.2 percent after UBS AG added the stock to its list of “most preferred” shares. Maurel & Prom jumped 4.4 percent after saying a well in Gabon was successful. Antofagasta Plc advanced 1.2 percent as metals prices gained.
Bond risk fell in Australia and in Asia outside Japan, as measured by credit-default swaps. The Markit iTraxx Asia ex- Japan investment grade index fell 1 basis point to 96 in Hong Kong, according to BNP Paribas SA prices.
“We’re seeing a fairly broad-based improvement in most economic measures,” said Cameron Peacock, an analyst at IG Markets in Melbourne. “Heading into next year, most people are fairly optimistic we’ll see a continued recovery across the global economy.”
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net; Nicolas Johnson in Tokyo at nicojohnson@bloomberg.net.
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