Oil, Won Advance on U.S. Growth Optimism; China’s Stocks Climb

By Lynn Thomasson and Ben Sharples - Mar 16, 2012 9:30 AM GMT+0700

Crude oil rose for the first time in three days and the won strengthened before U.S. data that may show consumer confidence rose to a one-year high and factory output increased. Shares of Chinese companies gained on upbeat earnings reports.

Oil added 0.4 percent to $105.53 a barrel as of 11:20 a.m. in Tokyo. The won rose 0.3 percent versus the dollar. The MSCI Asia Pacific Index (MXAP) and futures on the Standard & Poor’s 500 Index were little changed. The Shanghai Composite Index advanced 0.8 percent. Australian bond risk fell to a seven-month low.

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South Korea 10,000 won notes are arranged for a photograph in Seoul, South Korea. Photographer: SeongJoon Cho/Bloomberg

The S&P 500 climbed above 1,400 for the first time since 2008 yesterday after jobless claims matched the lowest level in four years and manufacturing in the New York region expanded at the fastest pace since June 2010. Most Bank of Japan board members said easing steps taken last month were “appropriate,” according to minutes of their last policy meeting.

“The U.S. appears to have established a pretty good base for growth,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The economic news is good. We’re headed in the right direction and that’s certainly a positive for oil.”

The MSCI Asia Pacific Index has gained 0.8 percent this week, the 12th advance in 13 weeks. The gauge’s 12 percent rally this year has pushed valuations to 15.1 times estimated profit, the highest level since May 2010, Bloomberg data show.

The Nikkei 225 Stock Average fell 0.3 percent today, Australia’s S&P/ASX 200 Index lost 0.1 percent and South Korea’s Kospi Index declined 0.2 percent. The Hang Seng Index rose 0.1 percent.

Zoomlion, BoCom

Zoomlion Heavy Industry Science & Technology Co., China’s biggest crane-maker, rallied 4.9 percent in Hong Kong after reporting profit that jumped 73 percent in 2011. Bank of Communications Co. climbed 2.3 percent in Hong Kong after the lender said yesterday it plans to raise 56.6 billion yuan ($8.9 billion) in the world’s biggest share sale since May.

“We spend a lot of time monitoring U.S. data and the way it’s developing positively over the past few months is very encouraging,” said Angus Gluskie, who manages more than $350 million at White Funds Management in Sydney. “We are moving into the start of a more favorable upward spiral.”

The dollar has risen against 14 of its 16 major counterparts this week as signs of strength in the U.S. economy reduced the likelihood of a third round of bond purchases -- known as quantitative easing or QE3 -- by the Federal Reserve to spur growth. The yield on 30-year Treasuries climbed 24 basis points since March 9, set for the biggest weekly gain since August 2009. The rate was little changed today at 3.42 percent.

U.S. industrial output climbed 0.4 percent in February, according to the median forecast of economists surveyed by Bloomberg before data today. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment may have reached 76 in March, a seventh monthly increase, projections show.

To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net