Chinese stocks rose and the yen headed for a second weekly decline against the dollar on speculation governments will step up stimulus to bolster their economies. Precious metals advanced with oil.
The Shanghai Composite Index jumped 1.2 percent to 3,110.77 at 12:41 p.m. in Tokyo, after surging the most in three weeks yesterday. Standard & Poor’s 500 Index futures added 0.1 percent. The yen weakened 0.1 percent versus the greenback as Japan’s 10-year government bond yields sank to a record. Gold advanced as much as 1.1 percent, trimming a second weekly decline, and Brent crude rose as much as 0.6 percent.
Japan’s inflation slowed for a fourth month in November while industrial production and retail sales unexpectedly dropped, adding to Prime Minister Shinzo Abe’s challenges in reviving the economy. The People’s Bank of China plans to temporarily waive a requirement for lenders to set aside reserves for some deposits, people with knowledge of the matter said. Markets in Australia, Hong Kong, Indonesia, New Zealand, and the Philippines are shut for Christmas holidays.
“We’re probably going to see low volumes today that could prompt some swings,” said Ryan Huang, a market strategist at IG Ltd. in Singapore, said by phone. “Expectations of PBOC measures are likely going to continue to be in play.”
The Shanghai Composite Index surged 3.4 percent yesterday, the most since Dec. 4. The index has risen 47 percent this year on speculation the central bank will further ease monetary policy to support the economy after cutting interest rates. The MSCI Asia Pacific Index rose 0.3 percent, heading for its first weekly gain since November.