Azernews.Az

By Bloomberg

Asian stocks rose with U.S. equity-index futures, while New Zealand’s dollar slumped as weak dairy prices spurred easing bets. The euro slipped with Treasuries as Greece voting in favor of creditor-imposed demands was seen lifting an obstacle to higher U.S. rates.

The MSCI Asia Pacific Index climbed 0.3 percent by 2:15 p.m. in Tokyo as Australian and Japanese shares increased with mainland Chinese stocks. Standard & Poor’s 500 Index futures gained 0.3 percent. The Bloomberg Dollar Spot Index headed for its highest in three months as the kiwi slumped 1.1 percent and gold fell 0.2 percent. The yield on 10-year Treasuries rose two basis points, while the euro slipped 0.2 percent.

Greece’s parliament endorsed the fresh set of austerity measures as riot police tussled with protesters outside. The focus now shifts to how the European Central Bank will bolster the nation’s financial system. Economists predict New Zealand will join Canada and cut rates next week, with commodity-linked currencies leading losses this year. Meanwhile, the Federal Reserve is continuing to predict a gradual pace of tightening in 2015.

“A U.S. rate hike before the end of this year is very likely now as Yellen has repeatedly signaled such a move, which is bullish for the dollar,” said Kenix Lai, a foreign-exchange analyst at Bank of East Asia Ltd. in Hong Kong. “The Greek situation will take a while to be solved, while China’s economic recovery remains weak. The Chinese government’s measures haven’t yet restored market confidence. All these are positive for the dollar.”

China Shares

The Shanghai Composite gained 0.9 percent, after falling as much as 3.1 percent in the morning session. The gauge closed Wednesday about 26 percent below its June 12 high. Better-than- estimated economic-growth data Wednesday failed to boost investor confidence in the unsettled market.

The ChiNext index of small-company shares advanced 2.2 percent. A total of 673 stocks were halted on mainland exchanges, or about 23 percent of all listings.

The Hang Seng China Enterprises Index of mainland firms listed in Hong Kong fluctuated after a two-day retreat. The Hang Seng Index was little changed.

The Chinese stock rout may have larger implications than the U.S. subprime mortgage crisis, said Paul Singer, founder of hedge fund Elliott Management, said at a conference in New York Wednesday. Fellow money managers Bill Ackman and Jeffrey Gundlach have also aired concerns over China.

The kiwi fell to as weak as 65.07 U.S. cents, its lowest level since July 30, 2009. The currency sank as much as 2 percent Wednesday after whole milk powder prices declined more than 10 percent at a fortnightly auction.

Kiwi Bonds

The yield on New Zealand’s 10-year notes plunged 13 basis points to 3.46 percent. The world’s biggest dairy exporter reviews benchmark rates on July 23.

The Australian dollar fell 0.2 percent to 73.61 U.S. cents following Wednesday’s 1 percent retreat. Canada’s dollar weakened another 0.1 percent after sinking as much as 1.8 percent to its weakest level since 2009 on Wednesday.

Gold traded at $1,147.19, near a four-month low. The Thai baht and South Korean won were down at least 0.3 percent.

The euro fell to $1.0934 after losing 0.5 percent to the greenback Wednesday. Yields on 10-year Treasuries rose two basis points, or 0.02 percentage point, to 2.37 percent. The yield dropped five basis points Wednesday in the wake of Yellen pledging yet again that the trajectory of increases will be slow.

Syriza Defections

After more than four hours of debate, 229 members of Greece’s 300-seat parliament approved new austerity measures that are a precondition of as much as 86 billion euros ($94 billion) in aid. Thirty two members of Prime Minister Alexis Tsipras’s Coalition of the Radical Left, or Syriza, opposed the bill, a sign he may have lost his majority.

The onus is now on the ECB and other euro-area governments to deploy more emergency funds that will help Greek banks gradually re-open and repair its beleaguered finances.

“Macro themes will not and cannot be removed from the headlines,” Evan Lucas, a markets strategist in Melbourne at IG Ltd., wrote in an e-mail to clients. “The fact the gray clouds that are China and Greece have cleared slightly only brings a sharper focus on the biggest macro cloud of 2015 - Fed lift off.”