By Stephen Kirkland
Sept. 13 (Bloomberg) -- Stocks rose to a one-month high, emerging equities entered a bull market and bonds fell for a fourth day as a surge in China’s industrial output boosted optimism in the global recovery. Banks gained after regulators gave them as much as eight years to meet capital requirements.
The MSCI World Index jumped 0.7 percent to the highest level since Aug. 11 at 10:35 a.m. in London. Futures on the Standard & Poor’s 500 Index added 1.1 percent. The yield on the German 30-year bond climbed to 3 percent for the first time since Aug. 19. The yen weakened against 13 of its 16 most-traded peers. The cost of insuring financial-company bonds using credit-default swaps plunged to a five-week low. Oil increased for a second day and zinc advanced.
China’s industrial production rose 13.9 percent in August from a year earlier, compared with the 13 percent median estimate of 29 economists, the statistics bureau said Sept. 11. The Basel Committee on Banking Supervision reached a compromise yesterday that more than doubles capital requirements for banks while giving them until 2019 to meet so-called buffer requirements to withstand future stress, in an effort to curb the risk-taking that led to the financial crisis.
“A new week has begun with an air of optimism over the growth outlook following economic data from China,” Derek Halpenny, the London-based European head of global currency research at Bank of Tokyo-Mitsubishi UFJ Ltd., wrote in a report today. There is also “relief that the Basel III agreement is not as onerous on the banking sector as some feared.”
Credit Agricole, HSBC
The Stoxx Europe 600 Index climbed 1 percent to its highest level in more than four months, while the MSCI Asia Pacific Index jumped 1.4 percent. Credit Agricole SA surged 6.2 percent, HSBC Holdings Plc advanced 1.5 percent and Mitsubishi UFJ Financial Group Inc. rose 2 percent. Hon Hai Precision Industry Co., the world’s largest contract maker of electronics, rallied 6.5 percent after sales increased. Rio Tinto Group led basic- resources stocks higher, rising 1.9 percent.
Deutsche Postbank AG tumbled 6.9 percent after Deutsche Bank AG offered between 24 euros and 25 euros a share to increase its stake in the lender. Deustche Bank, Germany’s largest lender, gained 0.8 percent after saying it would raise at least 9.8 billion euros ($12.6 billion) in its biggest-ever share sale to buy Postbank and meet stricter capital rules.
The gain in U.S. futures indicated the S&P 500 may advance for a fourth straight day. The benchmark gauge posted its biggest two-week rally since June last week amid better-than- forecast jobs data and as concern eased that Europe’s sovereign debt crisis would derail the global economic recovery.
India, Turkey, Poland
The MSCI Emerging Markets Index of 21 developing nations added 1.4 percent, extending gains from a May 25 low to 20 percent, the threshold for a so-called bull market. The MSCI China gauge, Taiwan’s Taiex and India’s Sensex index climbed more than 2 percent.
Turkey’s ISE National 100 Index of stocks rose 1.6 percent and the lira gained 0.8 percent against the dollar after Prime Minister Recep Tayyip Erdogan won a referendum on changes to the constitution that will strengthen his government’s powers over the courts and the army. Poland’s WIG20 index advanced 1.4 percent, led by an 11 percent rally in Bank Zachodni WBK SA after Spain’s Banco Santander SA agreed to buy a majority stake in the Wroclaw, Poland-based lender. PKO Bank Polski SA, which also bid for Zachodni, jumped 2.2 percent.
Yields Climb
The 30-year German bund yield increased 8 basis points to 3.06 percent, while the 10-year U.S. Treasury yield advanced 5 basis points to 2.85 percent. The yield on the two-year U.K. gilt rose 5 basis points to 0.78 percent. The Markit iTraxx Financial Index of credit-default swaps on the senior debt of 25 banks and insurers fell 7.5 basis points to 122, the lowest level since Aug. 10, according to JPMorgan Chase & Co.
Crude oil for October delivery advanced 1 percent to $77.19 a barrel in electronic trading on the New York Mercantile Exchange. Zinc for delivery in three months climbed 2.9 percent on the London Metal Exchange. The S&P GSCI Total Return Index of 24 commodities gained as much as 0.9 percent to the highest level since Aug. 11.
The yen depreciated 0.9 percent to 107.68 per euro and the dollar declined 1 percent to $1.2810 against the euro. The Australian dollar strengthened 0.7 percent to 93.29 U.S. cents, the highest level since April.