Asian Stocks Climb as Baht Rebounds; Palladium Declines:

May 23, 2014 9:23 AM GMT+0530

http://www.bloomberg.com/news/2014-05-22/asian-futures-rise-as-yen-holds-drop-baht-forwards-gain.html
Asian stocks rose, with the regional index set for the first back-to-back weekly gain in two months, on signs of
growth in the worlds largest economies. Palladium retreated from a 33-month high, while Thailands baht
advanced, regaining some of yesterdays losses following a military coup.
The MSCI Asia Pacific Index added 0.6 percent by 12:48 p.m. in Tokyo, bringing its weekly gain to 1 percent.
Futures on the Standard & Poors 500 Index (SPX) were little changed after the gauge rose 0.2 percent in New
York. The euro headed for a third week of losses, while the baht strengthened 0.3 percent. Palladium fell for
the first time in six days and platinum slid 0.3 percent. Credit risk in Asia declined for a third day.
The U.S. reports new home sales today after yesterday following China with better-than-estimated
manufacturing data, while German business confidence due today is forecast to fall. Thailands army staged its
12th coup in eight decades as the army chief said he was seizing control to restore peace. In Ukraine, 16
soldiers were killed in an attack by pro-Russian insurgents, before the presidential election this weekend.
Most people view that the U.S. will be the growth engine of the world this year, Chris Weston, chief market
strategist at IG Markets Ltd. in Melbourne, said by phone. If you look at everything on an adjusted basis, the
equity market probably continues to be the most compelling place to be in at the moment.
Gold trades below $1300 Palladium sector weekly price
May 23, 2014 9:02 AM GMT+0530
http://www.bloomberg.com/news/2014-05-23/gold-trades-below-1-300-as-palladium-set-for-second-weekly-
rise.html
Gold traded below $1,300 an ounce, little changed this week, as investors assessed the health of the U.S.
economy and the impact on monetary stimulus. Platinum and palladium were poised for a second week of
gains.
Bullion for immediate delivery traded at $1,294.94 an ounce at 11:29 a.m. in Singapore, according to
Bloomberg generic pricing. The metal climbed 0.2 percent to $1,294.10 yesterday after data showed U.S.
jobless claims rose more than forecast.
Gold has advanced 7.8 percent this year partly on tension in Ukraine and concern that the U.S. economic
recovery may be fragile. Applications for unemployment benefits increased to 326,000 in the week ended
May 17, the Labour Department said. That compares with a forecast for a gain to 310,000 in a Bloomberg
survey and a drop to a seven-year low a week earlier.
U.S. data continues to be mixed, which doesnt help investment decisions, and that keeps gold in a tight
trading range, said Lv Jie, a Hangzhou-based analyst at Cinda Futures Co., a unit of one of four funds
in China created to buy bad debt from banks.
Gold for August delivery traded at $1,295.10 an ounce on the Comex in New York from $1,295.20 yesterday.
Holdings in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, were unchanged
yesterday after sliding to 776.89 metric tons on May 21, the lowest since December 2008.
Silver for immediate delivery declined 0.2 percent to $19.4622 an ounce, set for a second week of gains.
Platinum slid 0.3 percent to $1,486.75 an ounce after climbing to $1,496.38 yesterday, the highest level since
September. Palladium lost 0.2 percent to $834.90 an ounce after reaching $839 yesterday, the highest price
since August 2011.
A strike over pay at the South African operations of Anglo American Platinum Ltd., Impala Platinum Holdings
Ltd. and Lonmin Plc has crippled output for almost 18 weeks. South Africa is the largest platinum producer and
second-biggest palladium producer.
U.S. Stocks Rise on Data as Small cap Advances:
May 23, 2014 2:09 AM GMT+0530

http://www.bloomberg.com/news/2014-05-22/u-s-stock-index-futures-little-changed-after-china-data.html
U.S. stocks rose, sending the Standard & Poors 500 Index to near a record, and small-cap shares rebounded as
data showing strength in manufacturing boosted confidence in the global economy.
Best Buy Co. and Williams-Sonoma (WSM) Inc. added at least 3.4 percent to pace gains among retailers. An
index of homebuilders rallied as sales of previously owned U.S. homes rose in April. Hewlett-Packard Co.
dropped 2.3 percent as it reported second-quarter sales that fell short of estimates and announced it is cutting
more jobs.
The S&P 500 rose 0.2 percent to 1,892.49 at 4 p.m. in New York. The benchmark index came within two points
of its all-time high of 1,897.45 reached last week. The Dow Jones Industrial Average climbed 10.02 points, or
0.1 percent, to 16,543.08. The Russell 2000 Index (RTY)of smaller companies rallied 0.9 percent. About 5.3
billion shares changed hands on U.S. exchanges, 19 percent below the three-month average.
Its a grindingly slow, gradualistic uptrend of the U.S. economy, David Young, founder chief executive officer
of Newport Beach, California-based Anfield Capital Management LLC, which manages $100 million, said by
phone. We absolutely, positively must factor in the vast amount of liquidity looking for an interesting home.
As a result, sell in May and go away has been proven wrong, because where else are you going to go?
The U.S. stock market is trading in the tightest range in eight years, according to data from Bespoke
Investment Group LLC. In the last three months, the difference between the S&P 500s intraday high and low
has been less than 5 percent, the Harrison, New York-based research group said in a report today.
Economy Watch
The Markit Economics preliminary index of U.S. manufacturing increased to 56.2 in May from 55.4 a month
earlier as output accelerated, the London-based group said today. Readings above 50 for the purchasing
managers measure indicate expansion and the May figure was the highest in three months. A preliminary
purchasing managers index in China increased to a five-month high.
Other data showed sales of previously owned U.S. homes rose in April for the first time in four months as the
weather warmed, price increases slowed and more properties were put on the market. More Americans than
projected filed applications for unemployment benefits last week, showing uneven progress in the labor
market.
The S&P 500 (SPX) climbed 0.8 percent yesterday, erasing the previous days declines, as Federal Reserve
policy makers said continued stimulus doesnt risk fuelling a jump in the inflation rate. Central bank policy
makers said last month the economy is showing signs of picking up and the job market is improving.

Fed Watch
The central bank pared its monthly asset buying to $45 billion in April, its fourth straight $10 billion cut, and
said further reductions in measured steps are likely.
Three rounds of bond purchases by the Fed have helped send the S&P 500 up as much as 180 percent from a
12-year low in 2009.
The Chicago Board Options Exchange Volatility Index, a gauge for U.S. stock volatility known as the VIX, rose 1
percent to 12.03 today. The gauge closed yesterday at the lowest level since August.
Eight out of 10 S&P 500 industry groups rose today, with health-care and utility companies gaining at least 0.5
percent for the biggest advances. Retailers rose 0.5 percent as a group.
Best Buy rallied 3.4 percent to $26.22. The worlds largest consumer-electronics retailer posted first-quarter
profit that topped analysts estimates as Chief Executive Officer Hubert Joly continued to trim costs.
Williams-Sonoma climbed 8.2 percent to a record $68.93. The seller of cookware and home furnishings raised
its full-year earnings forecast to as much as $3.17 a share, after earlier predicting no more than $3.15. The San
Francisco-based company also reported first-quarter profit of 48 cents a share, exceeding the 44-cent analyst
projection.
Market Movers
Dollar Tree Inc. jumped 6.6 percent to $53.31 for the biggest gain in the S&P 500. The discount retailer
reported first-quarter earnings that beat analysts estimates. The company said it expects as much as $2.02
billion in second-quarter revenue, exceeding analysts estimates of $2.01 billion for the period.
Consumer stocks are the worst-performing among 10 industries this year, down 3.6 percent as a group, after
leading the S&P 500s gain last year with a 41 percent rally.
ETF Flows
Investors have withdrawn $3.9 billion from U.S. exchange-traded funds tracking consumer-discretionary stocks
this year, more than any other industry, data compiled by Bloomberg show. The group has slumped 3.6
percent this year, the only one of the 10 main S&P 500 industries that has not advanced.
Hewlett-Packard dropped 2.3 percent to $31.78. The worlds second-biggest personal-computer maker said
sales in the second quarter fell 1 percent to $27.3 billion from a year earlier, lower than the $27.4 billion
analysts projected for the period. The company said it will eliminate 11,000 to 16,000 positions, on top of
34,000 already announced. Hewlett-Packard had 317,500 employees at the end of October.
Hess Corp. jumped 1.1 percent to $90.29. Marathon Petroleum Corp. agreed to acquire the companys
gasoline stations and retail business for a total of $2.87 billion, expanding its footprint to 23 states from nine.
An S&P index of homebuilders rallied 2.1 percent after the report on existing-home sales. PulteGroup Inc.
soared 2.2 percent to $19.22 and D.R. Horton Inc. climbed 2.4 percent to $22.65.
Activision, JD.com
Activision Blizzard Inc. dropped 1.6 percent to $20.53 after saying that Vivendi SA is selling half of its remaining
stake in the video-gamer maker in an offering valued at more than $850 million.
JD.com Inc., the Chinese online retailer that handled more than $20 billion of purchases on its website last
year, rose in its trading debut. The company gained 10 percent to $20.90 after raising $1.78 billion by selling
the shares for $19.
The Russell 2000 has rallied 1.5 percent over two days. The index tumbled as much as 9.3 percent from a
record on March 4 amid concern that prices have outrun earnings. Small-caps and Internet shares were among
the biggest victims of the market retreat as investors fled last years best-performing equities.
The Dow Jones Internet Composite Index increased 0.8 percent today. The gauge is still down 15 percent from
a 13-year high reached in March.
European Stock Rise for Second Day as Daily Mail Jumps
May 22, 2014 10:07 PM GMT+0530
http://www.bloomberg.com/news/2014-05-22/european-stock-index-futures-
advance-after-fed-minutes.html
European stocks rose for a second day as better-than-forecast manufacturing figures in China and the U.S.
offset euro-area output data.
Daily Mail and General Trust Plc surged 8.9 percent after announcing Zoopla Property Groups initial public
offering. Raiffeisen Bank International AG added 6 percent after posting first-quarter profit that beat analysts
estimates. Royal MailPlc slid the most since its initial public offering last year after reporting earnings that
missed projections.
The Stoxx Europe 600 Index rose 0.2 percent to 341.02 at the close in London. The benchmark gauge reached
a six-year high on May 13, as mergers-and-acquisitions activity increased and European Central Bank
President Mario Draghi said policy makers are ready to ease monetary policy next month if necessary.
The China manufacturing data is good news, said Jacques Porta, who helps oversee $780 million at Of
Gestion Privee in Paris. It will have a positive impact on Europe, especially on mining stocks. The bad euro-
area PMI data could add to signs that the ECB will be obliged to intervene soon. The downside risk to stocks is
that the ECB doesnt act in June.
In China, a preliminary purchasing managers index from HSBC Holdings Plc and Markit Economics rose to 49.7
in May, a five-month high. That exceeded the 48.3 median estimate of analysts surveyed by Bloomberg News.
Aprils final reading was at 48.1. Readings below 50 signal contraction.
Miners Rise
A gauge of commodity producers was among the best performers out of 19 industry groups in the Stoxx 600.
Rio Tinto Group, the worlds second-biggest miner, advanced 1.3 percent to 3,230 pence and Fresnillo Plc, a
silver and gold producer, gained 1.9 percent to 845 pence.
A Markit preliminary report showed that manufacturing in the U.S. rose to 56.2 in May from 55.4 in April,
surpassing the 55.5 reading projected by economists in a Bloomberg survey. A similar gauge for the euro area
fell to 52.5 this month from 53.4 in April. The median estimate of economists surveyed by Bloomberg was for
53.2.
Minutes from the Federal Open Market Committees April 29-30 meeting showed that policy makers said that
continued stimulus wont increase inflation. Some members also said the Federal Reserve should
communicate its monetary strategy more clearly as it moves closer toward increasing interest rates.
Jobless Claims
A Labor Department showed 326,000 Americans filed for jobless claims in the week ended May 17, following a
revised 298,000 in the previous period. Economists had predicted 310,000. Sales of previously owned U.S.
homes climbed in April for the first time in four months, according to another report.
National benchmark indexes advanced in 15 out of 18 western-European markets. The U.K.s FTSE 100 lost less
than 0.1 percent, Germanys DAX gained 0.2 percent and Frances CAC 40 rose 0.2 percent.
Daily Mail rallied 8.9 percent to 908.5 pence. Zoopla, owner of real estate websites Zoopla and PrimeLocation,
plans to list on the London Stock Exchange, Daily Mail said, without giving financial details. The publisher
merged Zoopla with its property division in 2012 and owns 52.6 percent of the unit.
Raiffeisen Bank climbed 6 percent to 23.46 euros. The Austrian lender reported first-quarter net income of 161
million euros ($220 million), exceeding the 128-million euro average of analyst estimate in a Bloomberg
survey.
SABMiller Profit
SABMiller Plc added 3.5 percent to 3,372 pence. The worlds second-biggest brewer said full-year earnings
before interest, taxes and amortization rose 1.2 percent to $6.45 billion. That compared with the $6.44 billion
median estimate of analysts surveyed by Bloomberg News. Excluding acquisitions and currency swings, Ebita
rose 7 percent, as profit increases in Latin America and Africa offset declines in Europe.
Royal Mail tumbled 9.7 percent to 519 pence. The U.K. postal service reported full-year pretax profit excluding
some items of 363 million pounds ($613 million), missing the average analyst estimate of 406 million pounds in
a Bloomberg survey.
Logitech International SA slid 4.4 percent to 11 Swiss francs after saying it will delay filing its annual report
because of an accounting investigation. The maker of computer accessories said its audit committee and
independent advisers are reviewing previously issued financial statements. Some of those issues are also part
of a formal Securities Exchange Commission probe, Logitech said.
Electro components Plc retreated 2.9 percent to 280.6 pence after saying full-year revenue at its U.K. business
declined 2 percent. The distributor of electronics products said that sales trends in the second half of the year
didnt improve as much as it had forecast.
Asian Stocks Head for 4-Month High on U.S. Manufacturing
May 23, 2014 11:48 AM GMT+0530
http://www.bloomberg.com/news/2014-05-23/asian-stocks-extend-weekly-gain-on-u-s-data-weaker-yen.html
Asian stocks rose, with the regional benchmark heading for a four-month high, after data showed U.S.
manufacturing expanded and as the yen held yesterdays losses.
Li & Fung Ltd., a supplier of toys and clothes that gets 62 percent of its revenue in the U.S., gained 2.3 percent
in Hong Kong. Sunac China Holdings Ltd., a homebuilder partly owned by buyout firm Bain Capital LLC, jumped
7.4 percent in Hong Kong after it agreed to buy a stake in developer Greentown China Holdings Ltd. Takeda
Pharmaceutical Co., Asias largest drug maker, added 1.6 percent in Tokyo after it was found not liable for the
bladder cancer of two women who used its Actos diabetes medication.
The MSCI Asia Pacific Index added 0.5 percent to 140.98 as of 2:16 p.m. in Hong Kong, heading for the highest
close since Jan. 1. About two stocks rose for each that fell on the measure, which has gained 0.9 percent this
week.
Most people view that the U.S. will be the growth engine of the world this year, said Chris Weston, chief
market strategist at IG Markets Ltd. in Melbourne. If you look at everything on an adjusted basis, the equity
market probably continues to be the most compelling place to be in at the moment.
Photographer: Dario Pignatelli/Bloomberg
Royal Thai Army soldiers keep watch from a military vehicle while stationed outside the...Read More
Japans Topix (TPX) index rose 0.9 percent as the yen was little changed at 101.76 per dollar after falling 0.4
percent yesterday.South Koreas Kospi index rose 0.1 percent. Australias S&P/ASX 200 Index rose 0.2 percent
and New Zealands NZX 50 Index added 0.4 percent.
Regional Gauges
Hong Kongs Hang Seng Index and the Hang Seng China Enterprises Index of mainland companies traded in the
city both added 0.1 percent. Li & Fung climbed 2.3 percent to HK$11.40. The Shanghai Composite Index gained
0.5 percent.
Taiwans Taiex index rose 0.4 percent, while Singapores Straits Times Index gained 0.2 percent.
Thailands SET Index slumped 1.5 percent as the nations army took control of the country and suspended the
constitution after a six-month crisis that has sapped economic growth and caused political paralysis, staging
the militarys 12th coup since 1932.
Two days after declaring martial law and saying there was no coup, army chief Prayuth Chan-Ocha announced
on national television alongside senior military officials yesterday that he was seizing control to restore peace.
Futures on the Standard & Poors 500 Index gained less than 0.1 percent today. The U.S. measure added 0.2
percent yesterday. The Markit Economics preliminary index of U.S. manufacturing increased to 56.2 in May
from 55.4 a month earlier as output accelerated, the London-based group said yesterday. Readings above 50
for the purchasing managers index indicate expansion, and the May figure was the highest in three months.
U.S. Data
Other data showed sales of previously-owned U.S. homes rose in April for the first time in four months while
more Americans than projected filed applications for unemployment benefits last week, showing uneven
progress in the labor market.
Sunac China jumped 7.4 percent to HK$3.78 in Hong Kong after it agreed to pay HK$6.3 billion ($813 million)
for a 24.3 percent stake in Greentown China, which soared 6.2 percent to HK$8.17.
Chinese developers climbed after China Securities Journal reported the government will remove home-
purchase restrictions depending on market situations and avoid causing market volatility, citing an unidentified
researcher with the housing ministry.
Developers Rise
China Overseas Land & Investment Ltd., the largest mainland developer listed in Hong Kong, rose 5.8 percent
to HK$20.05. China Resources Land Ltd. added 4.9 percent to HK$15.48.
Takeda Pharmaceutical gained 1.6 percent to 4,594 yen. A jury in Las Vegas yesterday agreed with the
company that Actos didnt cause the womens disease, handing Takeda its fifth victory from six cases that have
gone to trial over the drugs alleged link to bladder cancer.
The MSCI Asia Pacific Index lost 0.7 percent this year through yesterday amid concern Chinas economic
slowdown is accelerating. The gauge jumped 1.1 percent yesterday as preliminary China manufacturing data
beat estimates.
The Asia-Pacific gauge traded at 12.8 times estimated earnings as of yesterday, compared with 16.1 for the
S&P 500 and 15.2 for the Stock Europe 600 Index, according to data compiled by Bloomberg.