Source: Bloomberg
According to Bloomberg, Asian stocks climbed a fifth day, with the benchmark gauge trading near a five-year high, while emerging-market currencies strengthened on speculation the Federal Reserve will hold off cutting monetary stimulus until next year. Australia’s dollar jumped after inflation data.
The MSCI Asia Pacific Index rose 0.3 percent by 10 a.m. in Tokyo after earlier touching the highest level since June 2008. Standard & Poor’s 500 Index (SPA) futures dropped 0.1 percent after the gauge rose in New York. South Korea’s won climbed to the strongest level since January and Malaysia’s ringgit snapped a three-day decline. The Australian dollar strengthened to hold at a 4 1/2-month high. Copper retreated 0.4 percent after gaining yesterday while silver rose a seventh day.
Barclays Plc pushed out their estimate for the start of Fed tapering to March from December after data delayed because of the U.S. government shutdown showed employers added 148,000 workers in September, below the 180,000 increase projected in a Bloomberg survey. The 16-day shutdown cut U.S. growth and cost jobs, according to an economic aide to President Barack Obama. China’s Treasury holdings fell to a six-month low in August and Australian inflation quickened more than expected last quarter.
“The key takeaway for the Fed from the September U.S. non-farm payrolls is that the U.S. economy is in no shape to withstand a reduction in monetary stimulus,” Matthew Sherwood, head of investment markets research in Sydney at Perpetual Investments, which manages about $25 billion, said in an e-mail. “Expectations of tapering delays will continue to support markets.”
The Asian Century Report 