World Economy

Asian Stocks Rise for Third Day

Asian Stocks Rise for Third DayAsian Stocks Rise for Third Day

Asian stocks rose for a third day after data on retail sales bolstered confidence in the strength of the US economy and a weaker yen sent Japanese shares higher.

The MSCI Asia Pacific Index gained 0.2 percent to 147.81 as of 9:01 a.m. in Tokyo, headed for a 0.1 percent decline this week. Japan’s Topix index added 0.2 percent after the yen slid 0.6 percent against the dollar Thursday. The Standard & Poor’s 500 Index climbed 0.2 percent as sales at US retailers picked up in May and applications for unemployment benefits remained below 300,000 for a 14th straight week. The International Monetary Fund said its team negotiating with Greece left Brussels after failing to make progress on a debt deal, Bloomberg reported.

South Korea’s Kospi index gained 0.6 percent. New Zealand’s NZX 50 Index rose 0.1 percent. Australia’s S&P/ASX 200 Index lost 0.1 percent. Markets in China and Hong Kong have yet to open.

The Shanghai Composite Index closed 0.3 percent higher on Thursday, rising for the first time in three days as higher-than-estimated growth in industrial output and the broadest gauge of credit as well as a jump in new home sales signaled the nation’s economy may be stabilizing. E-mini futures on the S&P 500 slipped 0.1 percent.

The Australian dollar strengthened 0.21% against the US dollar to close at 0.7751. Yesterday’s data showed that in China, Australia’s biggest trading partner, industrial production rose more than expected by 6.1% YoY in May, following an increase of 5.9% recorded in the preceding month.

 Additionally, the nation’s retail sales climbed 10.1% on an annual basis in May, at par with market expectations, suggesting that China’s economic slowdown may be over. LME Copper prices declined 2.31% or $139.5/MT to $5906.0/MT. Aluminum prices declined 1.48% or $25.5/MT to $1701.5/MT.

In the Asian session, at GMT0300 on Friday, the pair is trading at 0.7751, with the AUD trading a tad lower from yesterday’s close. The pair is expected to find support at 0.7703, and a fall through could take it to the next support level of 0.7656. The pair is expected to find its first resistance at 0.7788, and a rise through could take it to the next resistance level of 0.7826.