Spanish and Italian bonds advanced with Asian equities as Europe’s bechmark stock index flirted with its longest winning streak since 2006. US oil rallied from below $50 a barrel and gold climbed off a five-year low as the dollar held gains versus the euro.
The yield on 10-year notes from Spain and Italy fell at least two basis points in London, while the Stoxx Europe 600 Index added less than 0.1% after nine days of gains. The MSCI Asia Pacific Index climbed 0.4%, while US futures were little changed. West Texas Intermediate oil erased a drop to trade at $50.18 a barrel, while gold futures pared losses. The dollar held near a three-month high against the euro, while the yen touched its weakest in a month, Bloomberg reported.
The outlook for precious metals and oil prices has soured as the strengthening of the US economy pushes the Federal Reserve toward boosting interest rates for the first time since 2006. Gold slid the most in two years during 15 minutes of Asian trading Monday as the dollar held onto recent gains. The weaker euro is making exports from the region more competitive.
Copper rose 0.4% to $5,504 a metric ton in London. Nickel jumped 1.8% to $11,905. Wheat futures retreated 0.3%, extending declines near its lowest price in almost a month.
The Bloomberg Dollar Spot Index was little changed at a four-month high following four days of gains. The Korean won weakened 0.5%, while the euro traded at $1.0832, close to its lowest price since April. The greenback bought 124.39 yen. New Zealand’s dollar strengthened 0.6% to 66.07 US cents after data showed net immigration in the year through June climbed to a fresh record.
Transportation shares drove Japan’s Topix to a 0.7% gain, while the Nikkei 225 Stock Average climbed 0.9% as the country came back from a holiday.
Australia’s S&P/ASX 200 Index rose 0.4% for a sixth day of gains, while the Kospi index in Seoul added 0.5% in a late rally.
The Shanghai Composite Index swung to a gain of 0.6% after falling as much as 2%. The benchmark gauge for China’s biggest venue capped a three-day, 4.9% advance Monday.
The Hang Seng China Enterprises Index in Hong Kong increased 1%, while the Hang Seng Index advanced 0.7%.
