More gains as Greece solution passed

<p>Regional stock markets gained for a third successive day, the Euro strengthened to a two-week high against the US dollar and bond risk slid after […]</p>

Regional stock markets gained for a third successive day, the Euro strengthened to a two-week high against the US dollar and bond risk slid after Greece’s government took the first step in adopting an austerity plan. Oil also extended a two-day rally. The MSCI Asia Pacific Index added 1.3% at noon in Tokyo. Standard & Poor’s 500 Index futures rose 0.2%, while Treasuries snapped the steepest three-day loss this year. 

In economic news, South Korea cut a 2011 growth forecast and raised an inflation estimate to beyond President Lee Myung Bak’s target after global demand weakened and energy costs climbed. The economy will expand 4.5%, the Finance Ministry said in a statement, down from a 5% estimate in December. Consumer prices are expected to rise 4%, exceeding the previous 3% projection. 

Thailand’s Government Pension Fund, which manages about $16 billion of assets, plans to double its investments in overseas bonds after political tension ahead of the July 3 election eroded returns on domestic equities. The country’s third-biggest money manager aims to raise its holdings in foreign debt securities to 10% of total assets by the end of this year, up from 5%, said the agency’s secretary general. 

In corporate news, BYD Co – the Chinese automaker part-owned by billionaire investor Warren Buffett – jumped 44% on its first day of trading in Shenzhen, southern China. Korea Aerospace Industries – the country’s largest plane maker – surged 38% on its debut in Seoul after completing the nation’s largest initial public offering this year.

In currencies, the Korean won rose 0.8% to 1,068.55 per dollar after data from Statistics Korea showed output climbed 8.3% in May from a year earlier, after gaining a revised 6.9% in April. New Zealand’s currency added 0.7% to 83.08 U.S. cents, while the Taiwan dollar rose 0.7% to NT$28.71 before the central bank decides on interest rates today. 


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.