By Bloomberg News - Jan 2, 2013 6:21 AM GMT+0400
Asian stocks rallied in the first session of 2013, extending last year’s 13 percent global rally, and copper advanced while Japan’s yen weakened as U.S. Republican lawmakers gave up opposition to a budget compromise.
The MSCI Asia Pacific excluding Japan Index climbed 1.3 percent as of 10:09 a.m. in Hong Kong, heading for its highest close since August 2011. Equity markets in Japan and mainland China are closed today and tomorrow for public holidays. Copper in London gained 1.3 percent as oil in New York rose 0.6 percent. The yen tumbled 0.9 percent to 115.48 per euro.
A man rides his bicycle on the Pyrmont Bridge as commercial buildings stand in the central business district in Sydney, Australia. Photographer: Brendon Thorne/Bloomberg
House Republicans abandoned their effort to add spending cuts to the Senate’s budget legislation and one member predicted the measure will be passed tonight, removing one impediment to recovery in the world’s largest economy. China will work toward bolstering global growth this year, PresidentHu Jintao said in a New Year’s Eve address. South Korean manufacturing expanded for the first time since May in December, a private survey showed today.
“There is still a good chance that most of the fallout may be averted,” Aneta Markowska, chief economist at Societe Generale SA in New York, said in an e-mail. “It was not the grand bargain that we hoped for, but if approved by the House of Representatives, it will delay or permanently extend most of the elements of the fiscal cliff.”
Oklahoma Representative Tom Cole said he expects the House to pass the Senate bill unchanged with a “substantial” bipartisan vote. The House was said to have scheduled a final vote at 11:15 p.m.
Regional Indexes
More than five stocks climbed for each that fell on the MSCI Asia Pacific excluding Japan Index as all 10 industry groups rose.
Australia’s S&P/ASX 200 Index (AS51) gained 1 percent and South Korea’s Kospi Index added 1 percent. Hong Kong’s Hang Seng Index advanced 1.5 percent while a gauge of Chinese companies listed in the city increased 2.1 percent.
The MSCI Asia Pacific Index, which includes companies from Japan, increased 14 percent last year. The Asia-Pacific gauge trades for 14.9 times estimated earnings compared with the Standard & Poor’s 500 Index, which trades for 13.8 times forecast income, and the Stoxx Europe 600 Index, valued at 12.7 times.
U.S. stocks surged on the last day of a year by the most since 1974 on Dec. 31, completing a 13 percent gain for 2012, the best since 2009. Gold extended a 12th annual gain, the longest streak since at least 1920.
Copper rose to $8,055 a metric ton as nickel climbed 1.2 percent in London.
To contact Bloomberg News staff for this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net; Chua Baizhen in Singapore at bchua14@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
