Asian Shares Climb Amid Metals Bounce as Yen Slips: Markets Wrap 

• Iron ore, copper lead materials higher on China growth signs
• U.S. shares meandered amid angst before Trump media conference

Asian stocks rallied, led by a surge in mining companies, after evidence of quickening price growth in China boosted industrial metals and other commodities. Turkey’s lira hit a record low ahead of the latest data on its current-account deficit.

Raw-materials shares in Asia rose toward their highest level in almost a month amid gains in copper to iron ore on Chinese producer-prices data out Tuesday. While oil edged higher, it stayed near a one-month low amid concern the U.S. is raising its output forecast just as OPEC members start to cut output. Hong Kong equities rose for a 10th day, South Korean shares headed for the highest level since July 2015 and the yen snapped a two-day climb.

The fastest pace of growth for Chinese producer prices in five years propelled advances in industrial metals and other raw materials on prospects the world’s second-largest economy will export inflation around the world via its supply chains. The data came amid a sense of caution in U.S. markets as the euphoria over President-elect Donald Trump’s perceived pro-growth policies faded. Investors will be watching Trump’s first press conference for details on his policy outlook.

“I expect China to maintain stability in its economy,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo. “In the mid- to long term, for commodities including precious metals there’ll be investment from Chinese domestic demand. We don’t know how the market will react to Mr. Trump’s press conference at the moment, so we’re in a wait-and-see situation.”

Stocks

• The dollar-denominated MSCI Asia Pacific Index climbed 0.3 percent as of 2:20 p.m. Tokyo time, with raw-material stocks up 1.7 percent and Japan’s Topix index rallying 0.6 percent.
• Miners and technology shares led Australia’s S&P/ASX 200 Index up 0.2 percent and equities in New Zealand climbed for a third day.
• The Shanghai Composite Index slid 0.6 percent. Hong Kong’s Hang Seng Composite Index rose 0.5 percent, heading for a 10th day of gains, which would be the longest winning run since 2012. The Hang Seng China Enterprises Index added 0.6 percent.
• South Korea’s Kospi index gained 1.6 percent after Samsung Electronics Co. rallied 3 percent to a record.
• India’s S&P BSE Sensex jumped to a two-month high, led by metal producers. Tata Steel was the top gainer on the gauge, rallying to more than a two-year high.
• E-mini futures on the S&P 500 were little changed. The S&P 500 closed unchanged at 2,268.90 Tuesday. The Dow Jones Industrial Average fell 0.2 percent to 19,855.53.

Commodities

• West Texas Intermediate crude gained 0.3 percent to $50.96 a barrel after sliding almost 6 percent over the past two days. Analysts project U.S. oil stockpiles rose by 1.5 million barrels last week, muting optimism fueled by producers including Russia and Iraq saying they’re implementing last year’s accord to cut output.
• Iron ore futures jumped 2.8 percent after a 5.5 percent rally on Tuesday. Copper was little changed at $5,758 a ton in London following a 3 percent surge. Goldman Sachs Group Inc. said in December it expected prices to rise to $6,200 in six months. Citigroup Inc. also sees the metal above $6,000 in 2017 as mine supply slows.
• Gold for immediate delivery rose 0.1 percent at $1,188.66 an ounce, near the highest level since November.

Currencies

• The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, added 0.1 percent.
• The yen weakened 0.3 percent to 116.13 per dollar following a two-day advance of more than 1 percent.
• The won was little changed at 1,194.43 per dollar, while the lira sank 0.6 percent.

Bonds

• Yields on Australian government bonds due in a decade rose by two basis points, or 0.02 percentage point, to 2.735 percent after shedding five basis points last session.
• Similar maturity Treasuries yielded 2.39 percent, up another basis point.

Source: Bloomberg

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