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By Bloomberg

Stocks rose in Europe and Asia while bonds gained, stabilizing after a debt-market selloff that erased more than $400 billion of value in three weeks. The dollar pared a fifth weekly decline.

The Stoxx Europe 600 Index added 0.3 percent to 8:34 a.m. in New York. Standard & Poor’s 500 Index futures increased less than 0.1 percent. Chinese shares listed in Hong Kong rose for the first time in four days. Treasury 10-year note yields fell four basis points to 2.20 percent as government bonds of similar maturity rose in every developed market. The Bloomberg Dollar Spot Index added 0.5 percent. U.S. crude retreated, paring its ninth weekly advance.

Signs that the bond selloff has run its course is easing concern that the rout could spark contagion in other markets. Treasuries rose after data yesterday showed producer prices unexpectedly fell, bolstering the case for the Federal Reserve to leave interest rates lower for longer. The dollar maintained gains after a report showed manufacturing in the New York area increased less than forecast in May, before data on industrial production.

“Things are finally more calm now,” said Pierre Mouton, who helps oversee $8.3 billion as a money manager at Notz, Stucki & Cie. in Geneva. “Markets needed some kind of normalization of bond yields. The selloff just got to a point where equity markets could no longer ignore it, and valuations got a real shock.”

More than two shares advanced for every one that declined in the Stoxx 600, with trading volumes about 7 percent below the 30-day average, according to data compiled by Bloomberg. Trading in countries including Switzerland and Sweden resumed after a holiday yesterday. Denmark remained closed today.

Cancer Drug

Roche Holding AG added 2.5 percent after a study showed its experimental immunotherapy for lung cancer doubled the likelihood of survival for some patients.

The S&P 500 closed at a record yesterday as a weaker dollar boosted multinational companies.

The yield on German bunds reached 0.78 percent on May 7, the highest since Dec. 8, and up from a record-low of 0.049 percent set on April 17. Spain’s 10-year yield fell seven basis points to 1.77 percent and the rate on U.K. gilts dropped three basis points to 1.96 percent.

Dollar Gains

The dollar rose versus 14 of its 16 major counterparts. It added 0.6 percent to $1.1337 per euro, having reached $1.1445 on Thursday, the weakest level since Feb. 19. The dollar index slid 0.6 percent in the week.

The yen extended losses after people familiar with the discussions said that while the Bank of Japan isn’t currently considering cutting the interest rate on banks’ reserves, the option isn’t permanently off the table. Japan’s currency slid 0.6 percent to 119.93 per dollar.

The won was the best-performing major currency as prospects of further monetary easing receded after the South Korean central bank kept interest rates unchanged for a second month.

The MSCI Emerging Markets Index advanced 0.5 percent. The gauge has risen 0.4 percent this week, amid receding prospects for U.S. interest-rate increases.

Hong Kong’s Hang Seng China Enterprises Index climbed 1.7 percent, leaving it 0.3 percent lower on the week. The Shanghai Composite Index slid 1.6 percent, paring its gain in the five- day period to 2.4 percent.

Rally Slows

The ruble’s rally slowed this week after the central bank said on Thursday it started buying foreign currency. Russia’s currency was little changed after sliding 1.7 percent yesterday, leaving 2 percent and the rally this year to 21 percent, the biggest advance worldwide.

Malaysia’s ringgit added 0.4 percent after reports showed Southeast Asia’s third-largest economy expanded a more-than- estimated 5.6 percent and the current-account surplus beat forecasts.

Oil headed for the longest weekly run of gains since trading started in 1983 as U.S. stockpiles declined, easing a global glut. U.S. shale explorers and the Organization of Petroleum Exporting Countries are set to expand production later this year, preventing further price gains, Pierre Andurand, the founder of hedge fund Andurand Capital Management, said in an interview with Bloomberg Television Thursday.

West Texas Intermediate futures slipped 0.6 percent to $59.56 a barrel, while still heading for a weekly gain of 0.3 percent. Brent crude dropped 29 cents to $66.41.

Gold was little changed at $1,219.54 an ounce, close to a 12-week high and poised for biggest weekly increase since January as investors weighed whether the Federal Reserve will delay boosting interest rates after mixed data on the U.S. economy.