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Asia, Europe Stocks Gain

Asia, Europe Stocks GainAsia, Europe Stocks Gain

Asian shares rose, with the regional benchmark index heading for its longest winning streak in almost three months, after a weaker-than-expected US jobs report reduced the case for the Federal Reserve to raise interest rates.

Galaxy Entertainment Group Ltd. jumped 5.3% to lead a second day of gains by casino stocks traded in Hong Kong after Chinese visitors to the world’s largest gambling hub surged during the mainland’s Golden Week holiday.

Energy shares led the advance on the Asian benchmark index, with Woodside Petroleum Ltd. rising 3.1% after a report signaled US crude output cuts.

Maruti Suzuki India Ltd., the nation’s biggest automaker, fell as much as 4.2% in Mumbai after its board approved an agreement with Suzuki Motor Corp. to build a new factory in Gujarat, Bloomberg reported.

The MSCI Asia Pacific Index climbed 1.3% to 128.01 in Hong Kong, advancing for a fourth day. Japan’s Topix index rose 1.3%, and South Korea’s Kospi index increased 0.4%. Australia’s S&P/ASX 200 Index jumped 2% as commodity shares led gains. New Zealand’s NZX 50 Index added 0.7%. Hong Kong’s Hang Seng Index rose 1.6%, while those in mainland China remained closed for a holiday.

Meanwhile, European stocks are heading for their biggest two-day rally in almost a month, led by a jump in commodity producers.

The Stoxx Europe 600 Index advanced 2% in London. Glencore Plc jumped 6.6% after soaring as much as 72% in Hong Kong trading. The London shares have regained about 50% from last week’s record low. ArcelorMittal climbed 6.8% after Citigroup Inc. recommended buying the stock.

The Stoxx 600 ended up 0.5% on Friday, erasing losses of as much as 0.9%, as a weak employment report in the US fueled speculation that the Federal Reserve will delay its interest-rate increase. Traders are now betting it will happen in March.

Optimism is returning to European equities after the Stoxx 600 lost 16% from its April record through the end of last week. It reached its lowest level since January on Sept. 29 as concern grew that a slowdown in China will hurt the global recovery, while plunges in Volkswagen AG and Glencore further deteriorated sentiment. An exchange-traded fund tracking European stocks had a record $462 million in outflows last week, and trading of bearish options jumped.

Financialtribune.com