Asian Stocks Gain as Yen Falls, Kiwi Nudges Higher
EghtesadOnline: Stocks in Asia rose, with a weaker yen supporting Japanese equities and shares in Hong Kong and Shanghai advancing before a decision on whether MSCI will include China shares in global indexes.
Equities from Taiwan to Australia advanced, after back-to-back weekly declines in the MSCI Asia Pacific Index. The kiwi climbed as a gauge of the services industry expanded at a faster pace. Oil continued to retreat, trading near the lowest level since November. Gold was little changed after two weeks of losses, Bloomberg reported.
Global equities declined last week with trading volumes the highest since mid-March as poor housing data and a drop in consumer sentiment added to signs the American economy’s growth rate may be slower than forecast. That’s keeping bond yields down amid a subdued pace of inflation that’s sowed doubts about the Federal Reserve’s planned trajectory for monetary tightening.
There were more encouraging signs from Asian data on Monday, including New Zealand’s services report. Japan had a surprise trade deficit in May, as stronger-than-expected imports overpowered the continued growth in exports. Australian central bank Governor Philip Lowe said the country can achieve stronger growth if lawmakers can surmount current political gridlock. One weak spot was China, where home prices increased in fewer cities last month in the wake of cooling measures imposed by local authorities.