Economic Calendar

Monday, December 5, 2011

Asian Stocks Climb as Italy Moves to Cut Debt

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By Lynn Thomasson and Candice Zachariahs - Dec 5, 2011 7:34 AM GMT+0700

Asian stocks (MXAP) rose, extending the biggest weekly gain since August 2007, as the euro and oil advanced on signs Italy is taking steps to resolve its debt crisis.

The MSCI Asia Pacific Index increased 0.3 percent as of 9:03 a.m. in Tokyo, adding to the 8 percent surge last week. Standard & Poor’s 500 Index futures added 0.7 percent. The euro gained against the dollar and oil climbed for a second day to $101.56 a barrel. The Australian and New Zealand dollars rose at least 0.3 percent versus the greenback.

Italian Prime Minister Mario Monti announced 30 billion euros ($40 billion) of austerity and growth measures as he seeks to cut the euro-region’s second-biggest debt and prevent a breakup of the euro. European leaders will take another run at fixing the debt crisis at a Dec. 9 summit in Brussels after the failure of their fourth rescue blueprint intensified concern the 17-nation euro area was on the brink of unraveling.

“Everything points in the direction of something big coming out of this week’s meeting,” said Khoon Goh, head of market economics and strategy at ANZ National Bank Ltd. in Wellington. “In the early part of this week we will continue to see risk appetite improve.”

S&P 500 futures expiring in December climbed to 1,252. Service industries in the U.S. probably expanded in November at the fastest pace in six months, a sign the economy is accelerating in the final months of 2011, economists said before a report today.

To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Candice Zachariahs in Sydney at czachariahs2@bloomberg.net;

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net



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