Chinese Stocks Sink on IPOs as Kiwi Rallies, Baht Drops
Most Asian stocks rose before manufacturing reports as Japanese shares climbed with the yen near a six-month low. The Thai baht sank after deadly protests while New Zealand's dollar and oil rallied as gold declined.
The MSCI Asia Pacific Index was little changed by 9:39 a.m. in Tokyo as more than 260 stocks rose while 199 fell. Japan's Topix Index added 0.4 percent. Standard & Poor's 500 Index (SPA) futures climbed 0.1 percent after the index capped its longest run of weekly gains since 2004. The yen was steady to the dollar after five weeks of declines as the baht slipped 0.7 percent and New Zealand's currency jumped 0.5 percent. Oil in New York rose a second day while gold extended its third monthly drop.
HSBC Holdings Plc and Markit Economics issue factory output indexes for Asian countries from India to China today, after an official gauge for the region's largest economy released yesterday beat analysts' estimates. Bank of Japan Governor Haruhiko Kuroda speaks today. Three people died in Bangkok at the weekend as protesters seeking to oust the government vowed to incite more unrest. New Zealand's terms of trade rose the most since 1973 on surging dairy prices, data today showed.
'One area that may drag the market higher over the coming weeks could be China,' Tim Radford, a Sydney-based strategist at brokerage Rivkin Securities, wrote in an e-mail. 'A continued shift in sentiment as investors begin to tolerate more sustainable growth rates in the Chinese economy will likely see this upside continue into the end of the year.'
Chinese Factories
China's manufacturing purchasing managers' index came in at 51.4 for November, matching the 18-month high reached in October and beating 24 of 26 estimates in a Bloomberg News survey. The median projection was for 51.1 with levels above 50 signaling expansion. HSBC/Markit's gauge may today come in at 50.5 from 50.9 in October, according to a separate survey.
HSBC/ Markit's manufacturing index for South Korea rose to 50.4 from 50.2. The country's annual inflation rate quickened to 0.9 percent in November from 0.7 percent in October, below the median estimate of 1 percent in a Bloomberg survey, a report today showed.
The Kospi Index (KOSPI) in Seoul advanced 0.2 percent, after Korea's benchmark gauge capped a fifth straight month of gains, rising 0.7 percent in November. Australia 's S&P/ASX 200 Index fell 0.7 percent, falling a second day led by technology and consumer stocks.
The MSCI Emerging Market Index was little changed in early trading after snapping a two-month advance in November, losing 1.6 percent. The Bloomberg China-U.S. Equity Index of the most-traded Chinese stocks in New York rallied 0.9 percent last week.
Chinese IPOs
China's securities regulator issued a reform plan for initial public offerings Nov. 30, as the government prepares to lift a more than one-year freeze on new listings.
About 50 companies are expected to complete the IPO approval preparations and list or be ready to do so by the end of January, the China Securities Regulatory Commission said in a statement on its website at the weekend. There are more than 760 companies in the queue for approval and it will take about a year to complete an audit of all the applications, the regulator said.
The yen, which traded at 102.51 per dollar today, dropped a third day Nov. 29, touching the weakest intraday level since May 29.
The Thai baht slid to 32.275 per dollar, the weakest intraday level since September, after retreating for the first time in three months in November, depreciating 2.9 percent. The country's SET Index (SET) sank 5 percent last month.
Thai Unrest
In Thailand, Commerce Ministry figures today are estimated to show inflation accelerated last month to the fastest pace since July. Demonstrators removed barriers surrounding the prime minister's office and Government House over the weekend as police fired tear gas to repel them. The chief of the nation's army has offered to broker talks, according to an army spokesman.
New Zealand's dollar, known as the kiwi, strengthened to 81.66 U.S. cents after falling 1.7 percent last month. The terms of trade index, which measures the purchasing power of the South Pacific country's exports, climbed 7.5 percent last quarter from the previous three months, the steepest gain in 40 years to the highest level since 1973, Statistics New Zealand said today.
Yields on 10-year Treasury notes were little changed at 2.75 percent, while similar-maturity Australian bonds yielded 4.28 percent, up six basis points.
Several central banks meet this week, starting with the Reserve Bank of Australia tomorrow. The Bank of Canada reviews benchmark rates Dec. 4, followed by the ECB and Bank of England Dec. 5.
Winning Stocks
Global stocks beat all assets for a third month in November, the longest winning streak since 2009. The MSCI All-Country World Index of equities in 45 markets rose 1.5 percent including dividends as China pledged to expand economic freedoms, the European Central Bank cut interest rates and speculation increased the Federal Reserve will put off reductions to stimulus.
In the U.S. Nov. 29, the S&P 500 dropped 0.1 percent in shortened trading following the Thanksgiving holiday. The gauge's eight-week rally is the longest run of weekly advances since January 2004, data compiled by Bloomberg show. The Dow Jones Industrial Average (INDU) also fell 0.1 percent Nov. 29, trimming its biggest monthly climb since July to 3.5 percent.
Thanksgiving sales for U.S. retailers put them on track for the worst holiday results since 2009, ShopperTrak said.
Sales at brick-and-mortar stores in the U.S. on Thanksgiving and Black Friday rose to $12.3 billion, according to a Nov. 30 report from ShopperTrak. The Chicago-based researcher reiterated its prediction that sales for the entire holiday season will gain 2.4 percent, the smallest increase since the last recession.
Commodity Moves
Spot gold slipped 0.4 percent to $1,248.07 an ounce, after losing 5.3 percent in November in a third straight month of declines. Palladium dropped 0.3 percent, while platinum gained 0.5 percent.
West Texas Intermediate oil climbed 0.5 percent to $93.18 a barrel after slipping 4.1 percent last month. Brent futures rose for the first time in three days, adding 0.6 percent to $110.36. Natural gas futures fell for the first time in eight days, decreasing 1.2 percent after surging 10 percent last month, the most since March.
The S&P GSCI Index (SPGSCI) of 24 commodities sank 0.7 percent last week, bringing its November decline to 0.4 percent and its slide in the year to 4.1 percent.
The gauge has fallen in December 83 percent of the time since 1971 when it has been posting losses for the year through November, data compiled by Bloomberg show. Investors have pulled a record $34.1 billion from commodity funds since the end of December, according to EPFR Global, amid better crops, more U.S. oil extraction and slowing growth in China.
To contact the reporters on this story: Emma O'Brien in Wellington at eobrien6@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editor responsible for this story: Emma O'Brien at eobrien6@bloomberg.net
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