Asia stocks mostly higher, optimistic on US earnings

Tuesday, 22 July 2014 00:01 - - {{hitsCtrl.values.hits}}

REUTERS: Most Asian stock markets edged higher on Monday as investors set aside geopolitical concerns for the moment to focus on the generally upbeat flow of US corporate earnings ahead of a host of results due this week. Volumes were very light as Japanese markets took a holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, with modest increases for most markets across Asia. Spread betters predicted opening gains of 0.1 to 0.2% for the FTSE 100, DAX and CAC 40. A crowd of US companies report this week, ranging from Apple Inc to McDonald’s Corp, Coca-Cola Co and Caterpillar Inc. Thomson Reuters data showed that of 82 companies in the S&P 500 that had reported earnings through Friday morning, 68% beat Wall Street’s expectations. That was roughly in line with the 67% rate for the past four quarters and above the 63% rate since 1994. The Dow ended Friday up 0.7%, while the S&P 500 gained 1% and the Nasdaq 1.6%. For the week, the Dow rose 0.9%, S&P 500 gained 0.5% and the Nasdaq added 0.4%. Geopolitical concerns kept US Treasuries and German debt well underpinned. US 10-year yields were steady at 2.48% on Monday, while German bunds were yielding just 1.16% having neared all-time lows. After an initial bout of risk aversion, major currencies have settled into an eerie clam. The dollar index was steady at 80.513, having retreated from a one-month peak last Friday when the euro bounced off a five-month trough of $1.3491. Traders said buying interest below $1.3500 helped squeeze the euro up to $1.3539. The common currency should see solid support at $1.3460/80, an area that had provided a floor on several occasions in the past 10 months or so. The greenback was at 101.23 yen and not far from last week’s low of 101.09. The euro stood at 137.09 yen, off a five-month trough of 136.71. Gold was idling at $1,311.14 an ounce, after last week’s choppy action saw it swing between $1,339 and $1,292. Crude oil prices were subdued after enjoying only a brief rally last week. Brent inched up 5 cents to $107.29 a barrel. US crude fell 24 cents to $102.89 a barrel.