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In Asian Equity Markets stocks rose after a gauge of China's manufacturing expanded at the fastest pace in five months and policymakers said they will cut the reserve requirement ratio for some lenders. Karoon Gas Australia Ltd. (KAR) surged 43 percent in Sydney after saying it will sell energy permits to Origin Energy Ltd. for the Browse Basin off Australia's west coast. Makita Corp. led industrial shares higher, rising 5.4 percent in Tokyo. Dai-ichi Life Insurance Co. led losses on the regional benchmark index after the Nikkei newspaper reported the Japanese firm is preparing to buy Protective Life Corp. for more than 500 billion yen ($4.9 billion) to expand in the U.S. Japan's Topix index advanced 1.6 percent. South Korea's Kospi index rose 0.4 percent and Australia's S&P/ASX 200 Index gained 0.5 percent, while Singapore's Straits Times Index added 0.1 percent.Markets in China, Hong Kong, Taiwan and New Zealand were closed today for holidays.
In Currency Markets the dollar strengthened before a U.S. report that analysts say will show manufacturing expanded at the fastest pace this year, highlighting the economic differences in the nation and the euro area. The euro was near its lowest level in three months versus the greenback before data tomorrow predicted to cement the mix of slow inflation and near-record unemployment that may spur the ECB to act. The yen declined amid speculation Japanese pension funds will increase foreign asset purchases, weakening the local currency. Australia's dollar dropped as house prices and building permits slid. The dollar rose 0.2 percent to 101.97 yen as of 7:00 a.m. in London. It traded at $1.3633 per euro from $1.3635 on May 30 after touching $1.3586 the previous day, the strongest since Feb. 13. The euro rose 0.2 percent to 139.02 yen following a 2.1 percent slide in May. The Aussie weakened 0.5 percent to 92.63 U.S. cents, set for the biggest drop in almost two weeks. It weakened 0.3 percent to 94.46 yen.
In Commodities Markets West Texas Intermediate crude rose for the second time in three days after manufacturing expanded at the fastest pace this year in China, the world's second-biggest oil consumer. Brent advanced in London. Futures gained as much as 0.6 percent in New York. China's Purchasing Managers' Index climbed to 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing reported in Beijing yesterday. Manufacturing data from Europe and the U.S. are due today. Libya's Hariga port is set to reopen after authorities approved salary payments to Petroleum Facilities Guard members who are preventing crude loadings, according to National Oil Corp. WTI for July delivery increased as much as 59 cents to $103.30 a barrel in electronic trading on the New York Mercantile Exchange and was at $103.26 at 3:00 p.m. Tokyo time. Brent for July settlement gained as much as 46 cents, or 0.4 percent, to $109.87 a barrel on the London-based ICE Futures Europe exchange.
In US Equity Markets stocks rose, with benchmark indexes climbing to records, as utility and consumer-staple shares rallied and investors weighed data showing an uneven recovery in the American economy. Wal-Mart Stores Inc. and Lorillard Inc. climbed at least 1 percent, pacing gains among companies whose earnings are less tied to economic swings. U.S. Steel Corp. dropped 4.6 percent to lead losses among commodities producers. Lions Gate (LGF) Entertainment Corp. dropped 12 percent after quarterly results missed estimates. Eight of 10 main industries in the S&P 500 advanced today. Consumer-staples and utility stocks rose the most, adding more than 0.7 percent. Wal-Mart, a discount retailer, increased 1 percent to $76.77. Lorillard, a cigarette maker, rallied 3.2 percent to $62.17. Commodity shares were the only groups to decline, as oil and copper prices fell. U.S. Steel slipped 4.6 percent to $23.04 for the biggest retreat in the S&P 500. Finally, the DJIA finished up 0.10% at 16,715.18, the S&P 500 up 0.18% at 1,923.47, and the NASDAQ 100 up 0.03% at 3,736.82.
In Bond Markets Treasury 10-year futures contracts fell the most in three weeks after a gauge of Chinese manufacturing climbed to a five-month high and economists said a report today will show gains at U.S. factories. Futures as well as Treasury notes and bonds slid for a third day, bringing a pause to a two-month rally, on speculation 10-year yields that tumbled to an 11-month low last week don't reflect the outlook for growth. Speculative short positions on 10-year futures, or bets prices will fall, outnumbered longs by 19,078 contracts on the Chicago Board of Trade for the week ended May 27, according to the Commodity Futures Trading Commission. It was the smallest short position since February. The benchmark 10-year Treasury yield climbed one basis point, or 0.01 percentage point, to 2.48 percent. he yield fell to 2.40 percent on May 29, the lowest level since June 21. Japan's 2024 yield rose one basis point to 0.58 percent and Australia's increased two basis points to 3.67 percent.