Asian stocks rose, halting the regional index’s longest slump in 12 years, while industrial metals climbed and Chinese bonds rallied as the country’s central bank boosted stimulus. The dollar rose before the Federal Reserve reviews interest rates.
The MSCI Asia Pacific Index added 0.3 percent by 1:28 p.m. in Tokyo, rising for the first time in 10 days as a gauge of Chinese shares in Hong Kong jumped 1.7 percent. China’s five-year bonds gained the most in three months and the cost of insuring Asian debt against default slid a second day. Copper and nickel advanced at least 0.5 percent in London. Standard & Poor’s 500 Index futures retreated 0.1 percent and the Bloomberg Dollar Spot Index climbed 0.1 percent after its biggest drop in three months yesterday.
China is injecting 500 billion yuan ($81 billion) into the nation’s largest banks, according to a government official familiar with the matter, signaling the deepest concern yet with the country’s economic slowdown. Speculation the Fed will today maintain its pledge to keep rates low for a “considerable time” after ending asset purchases helped send the dollar lower yesterday. The euro-area and U.S. report inflation today, while Thailand reviews its key rates.
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