Stocks, Commodities Rise on China Economy; Gold Reaches Record
(Bloomberg) — Stocks rose, sending the benchmark index for emerging markets to its biggest six-day rally since July, and commodities gained after China’s industrial production and Japan’s machinery orders climbed. Gold advanced to a record.
The MSCI Emerging Markets Index added 1.2 percent at 8:42 a.m. in New York, boosting its six-day increase to 7.9 percent. Futures on the Standard & Poor’s 500 Index were 0.6 percent higher. Gold rallied to as high as $1,118.60 an ounce as the Dollar Index dropped to a 15-month low.
China’s industrial production soared 16 percent from a year ago and orders for Japanese machinery surged 10 percent from the previous month, signaling the recovery is accelerating in the world’s second- and third-biggest economies. Earnings from Paris-based bank Credit Agricole SA and Swiss cement-maker Holcim Ltd. beat analysts’ estimates. A record 80 percent of S&P 500 companies have topped third-quarter projections, according to Bloomberg data going back to 1993.
“Money that has been sitting on the sidelines is coming into emerging markets and driving stock markets up,” said Dmitry Gourov, an emerging-markets economist at UniCredit SpA in Vienna. “There is a very robust recovery story.”
The MSCI China Index of Hong Kong-traded shares jumped 1.1 percent to the highest level since June 2008, while South Korea’s Kospi Index added 0.8 percent after the nation’s unemployment rate fell to a nine-month low. China’s Shanghai Composite Index of mainland-traded shares slipped 0.1 percent as a slowdown in lending growth sent developers and banks lower.
Gold, Dollar
Gold rose as the dollar fell for a third day, spurring demand for the metal. Copper for December delivery jumped 1.6 percent in New York. Crude oil added 0.4 percent to $79.36 a barrel in New York. Nickel, zinc and lead also gained.
Raw-material producers led the advance in the MSCI World Index of 23 developed nations, which added 0.5 percent. BHP Billiton Ltd., the world’s largest mining company, climbed 3.8 percent in London. Europe’s Dow Jones Stoxx 600 Index increased for the fifth time in six days, rising 0.7 percent.
Credit Agricole surged 5.8 percent in Paris after posting third-quarter profit of 289 million euros ($435 million), beating the 128 million-euro median estimate of seven analysts surveyed by Bloomberg. France’s third-largest bank by market value said Chief Executive Officer Georges Pauget will step down.
Holcim, the world’s second-biggest cement maker, added 5.4 percent after saying it will exceed a 600 million Swiss-franc ($595 million) savings target for this year. ING rallied 7.2 percent in Amsterdam. The Dutch financial-services company that plans to sell its insurance business reported a third-quarter profit as improved markets limited writedowns.
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