ROME: Most Asian stocks outside Japan climbed amid speculation central banks in the region may increase monetary stimulus. Corn and wheat fell with crude oil, while nickel rallied.
The MSCI Asia Pacific excluding Japan Index increased less than 0.1 percent by 10:10 a.m. in Hong Kong, with five stocks climbing for every four that fell. The S&P/ASX 200 Index advanced 0.5 percent in Sydney as Australia & New Zealand Banking Group Ltd. reported a record cash profit. The Australian dollar fluctuated before a central bank interest-rate decision. US oil held below $59 a barrel, and corn and wheat lost 0.3 percent. Nickel gained 0.8 percent.
Australia is projected to cut benchmark rates for the second time this year Tuesday. Chinese equity markets have rallied this year as investors bet policy makers will further reduce borrowing costs and lenders’ reserve requirements to arrest sliding growth and promote domestic consumption. Markets in Japan, South Korea and Thailand are closed for holidays.
“Investors are comfortable with the idea of more of the same, more time to enjoy low interest rates, more time to enjoy low oil prices,” Scott Schuberg, chief executive officer of Rivkin Securities Ltd. in Sydney, wrote in an e-mail. “There is little doubt that the source of today’s volatility will come from the Reserve Bank of Australia’s interest rate decision.”
