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View Count: 74 |  Publish Date: July 15, 2013
Asia Stocks, Aussie Gain After China GDP as Gold Rallies
By Pratish Narayanan & Adam Haigh - 2013-07-15T04:53:44Z
Asian stocks and the Australiandollar climbed after China’s economy grew in line with analystforecasts and the government opened markets wider to foreigninvestors. Gold and other precious metals rallied.
The MSCI Asia Pacific Index excluding Japan Index rose 0.2percent at 12:38 p.m. in Hong Kong, while the so-called Aussiestrengthened 0.5 percent. Gold added 0.4 percent, extending itsbiggest weekly jump since 2011, as palladium headed for a one-month high. Futures (SPA) on the Standard & Poor’s 500 Index advanced0.2 percent after the gauge reached a record on July 12. Naturalgas increased 0.6 percent and corn futures sank.
A Chinese government decision to almost double investmentquotas for qualified foreign institutional investors to $150billion supported markets. Official data showed economic growthslowed to 7.5 percent in the second quarter, matching the medianestimate in a Bloomberg survey. Federal Reserve Chairman Ben S. Bernanke said last week that the U.S. would need accommodativemonetary policy for the foreseeable future.
“The QFII news is a piece of good news and it shows theregulator wants more capital inflows to support the market,”said Wu Kan, a Shanghai-based fund manager at Dazhong InsuranceCo., which oversees $285 million. “The GDP figure was nosurprise. The market is concerned that the government will nowsacrifice short-term growth to alter the structure of theeconomy. However, that’s the price China needs to pay for long-term sustainable growth.”
MSCI’s Asia Pacific index of regional stocks rallied 2.7percent last week, the most since the end of April, and an MSCIgauge of global equities climbed 3.4 percent after Bernanke’scomments, which were made July 10. U.S. retail sales probablyrose at a faster pace in June and the housing marketstrengthened, economists forecast before reports this week. Chinese Policy
The Shanghai Composite Index (SHCOMP) rose 1.5 percent and HongKong’s Hang Seng Index gained 0.4 percent. Markets in Tokyo areclosed for a holiday today.
Jiangxi Copper Co., China’s biggest producer of the metal,advanced 3.2 percent in Hong Kong. BYD Co., an electric carmaker partly owned by Warren Buffett, jumped 8 percent in HongKong after China’s State Council was reported to endorse the useof new energy in government vehicles.
“They are going to engineer a soft landing in China,”Nick Maroutsos, managing director and co-founder of KapstreamCapital, which oversees more than $4.5 billion, said in aninterview in Sydney. “We’re advising investors to stayrelatively nimble. We’re still very positive on the Asianregion.” Gold Rally
Hedge funds raised bets on higher gold prices for a secondweek as Bernanke’s comments damped expectations stimulus will becut soon. Net long positions on the metal rose by 4.1 percent,U.S. Commodity Futures Trading Commission data for July 9showed. Gold surged 5.1 percent last week. Spot bullion was at$1,289.29 an ounce today.
“The continuing theme for gold and metals in general isBernanke indicating a more accommodative monetary stance,” saidGavin Wendt, founder of Mine Life Pty, a mining and resourcesresearcher in Sydney. “China can’t really grow at 9 to 10percent every year. Growth now is coming off a very high base,but it’s more sustainable.”
Silver rose 0.6 percent, while palladium gained 1 percent,poised for the highest close since June 14. Platinum climbed 0.5percent, set for the highest close since June 18. Zinc, nickel,aluminum and lead fell on the London Metal Exchange, as tin rose0.3 percent. Copper futures increased 0.1 percent.
Contracts on corn due in December retreated 0.4 percentamid warmer, drier U.S. weather. Wheat futures sank 0.7 percentas well. WTI crude was little changed at $105.98 a barrel, afterclimbing 2.6 percent in the five days to July 12, a third weekof gains. Aussie, Kiwi
The Aussie, down 12.5 percent this year, rose to 90.98 U.S.cents. Australia, the world’s biggest iron-ore exporter, countsChina as its top trading partner. The New Zealand dollar, 5.7percent weaker in 2013, climbed 0.4 percent to 78.06 cents.
The Bloomberg Dollar Index was down 0.1 percent, afteradding 0.3 percent July 12, snapping a two-day decline. The wonclimbed 0.3 percent to 1,121.52 per dollar.
To contact the reporters on this story:Pratish Narayanan in Singapore at pnarayanan9@bloomberg.net;Adam Haigh in Sydney at ahaigh1@bloomberg.net
To contact the editor responsible for this story:Sandy Hendry at shendry@bloomberg.net

Keywords:
 Asia   Bernanke   China   climbed   future   gold   government   grow   Hong   Index   July   Kong   last week   market   metal   net   Ore   percent   rose   since   tin   week 

Picture Keywords
 Asia   Bernanke   China   climbed   future   gold   government   grow   Hong   Index   July   Kong   last week   market   metal   net   Ore   percent   rose   since   tin   week 
Time: 6:26  |  News Code: 305657  |  Site: bloomberg
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