Asian stocks rebounded from the biggest slump in the regional benchmark in two weeks, and credit risk declined after Alcoa (AA) Inc. started the U.S. earnings season with results that beat analysts’ estimates. Gold jumped the most in a week, while South Korea’s won and India’s rupee rallied.
The MSCI Asia Pacific Index climbed 1.3 percent by 1:50 p.m. in Tokyo. Standard & Poor’s 500 Index (SPX) futures rose 0.4 percent and FTSE 100 Index contracts added 0.5 percent. The won strengthened for the first time in three days and the rupee rebounded from a record low. The cost of insuring corporate and sovereign bonds in the Asia-Pacific region against non-payment was set for the lowest close in a week. Gold advanced 1.4 percent, and corn led gains in agricultural commodities.
Alcoa, the first member of the Dow Jones Industrial Average to report quarterly results, yesterday posted sales and profit that exceeded analysts’ forecasts. Chinese shares swung between gains and losses after a report showed inflation rose more than forecast in June. European Union officials meet today after finance ministers in the euro area yesterday agreed on an aid package for Greece.