Hong Kuang Commodities on Stocks Gain on China Exports
Stocks rose in the U.S. and emerging markets and currencies from South Korea’s won to Malaysia’s ringgit strengthened as Chinese exports topped forecasts. Japanese shares gained and the yen weakened after Tokyo was selected to host the 2020 Olympics.
The Standard & Poor’s 500 Index (SPX) added 1 percent to 1,671.71 as almost $15 billion in takeovers involving U.S. companies helped send the benchmark gauge to its biggest gain in five weeks. The MSCI Emerging Markets Index climbed 2 percent, the most since July 11. The Shanghai Composite Index surged 3.4 percent while the won advanced almost 1 percent versus the dollar and the yen slid 0.5 percent. Japan’s Topix Index (TPX) jumped 2.2 percent. Treasuries rose, with 10-year yields down 3 basis points to 2.91 percent. Oil fell from a two-year high as concern eased about an imminent strike against Syria.
Shares in Shanghai climbed the most this year as a 7.2 percent jump in overseas shipments bolstered optimism in the global economy. Japan’s Prime Minister Shinzo Abe said yesterday the Olympics will spur construction and help overcome deflation before data today showed the economy expanded more than initially estimated last quarter. In the U.S., President Barack Obama tried to persuade Congress to support air strikes against Syria.
“We’re latching on to the better trading in Asia after the Chinese data,” Robert Pavlik, New York-based chief market strategist at Banyan Partners LLC, said by phone. His firm manages about $4.4 billion. “The fact that nothing has transpired in Syria is also a positive in a strange sense. The Street is somewhat relieved that the U.S. hasn’t engaged in military action yet.”