Asia, Metals and SGD Strengthen

The MSCI Emerging Markets Index increased 1 percent, led by a 1.5 percent rally in Korea’s Kospi Index after Moody’s Investors Service raised the nation’s credit ratings. Futures on the Standard & Poor’s 500 Index rose 0.3 percent. Aluminum reached its highest since September 2008 and nickel the most since May 2008. The Singapore dollar strengthened 1.5 percent against the yen and 1.2 percent versus the U.S. currency. The yen weakened versus all 16 of its most-traded counterparts. Greek bonds fell for a second day.

Emerging-market stocks rose, lifting the benchmark index by the most in two weeks, and metals advanced as economic reports showed Asia is fueling the global economic rebound. The Singapore dollar strengthened the most in a year after the central bank revalued its currency.

Investors are gaining confidence in the global economic recovery after Singapore said growth is accelerating, Korea reported its biggest drop in unemployment in a decade and economists predicted China will report its fastest increase in gross domestic product in almost three years tomorrow. Intel Corp.’s sales forecast beat analysts’ estimates, reviving optimism as the U.S. earnings season starts.

“Confidence in emerging markets has returned,” said Allan Yu, who helps manage $4.5 billion at Manila-based Metropolitan Bank & Trust Co. “The risk appetite of investors is increasing largely because the economic environment is stabilizing and showing signs of improving.”

Emerging Markets

The MSCI emerging-markets index climbed to the highest level since July 2008. Korea’s benchmark rose to the highest since June of that year as Shinhan Financial Group Co., the country’s third-biggest financial company, climbed the most in two months. Russia’s Micex Index jumped 1.5 percent as government officials meet with bondholders today for the country’s first Eurobond sale since 1998.

Singapore’s dollar climbed as high as S$1.3754, the strongest level since August 2008, after the Monetary Authority of Singapore said it will seek a “modest and gradual appreciation” in the currency and shift to a stronger range for currency fluctuations. The nation’s economy will grow as much as 9 percent in 2010, the Trade Ministry also said today.

Greek bonds fell, with the yield on the nation’s benchmark two-year note rising 25 basis points to 7.16 percent, after Pacific Investment Management Co. and BlackRock Inc. said it’s too early to buy the securities after the European Union brokered the nation’s 45 billion-euro ($61 billion) aid package.

Shares Move

The MSCI World Index of 23 developed nations’ stocks gained 0.4 percent as the MSCI Asia Pacific Index climbed 0.7 percent. Samsung Electronics Co., the world’s biggest chipmaker after Intel, gained 2.1 percent in Seoul. Tokyo Electron Ltd. advanced 3.6 percent in Tokyo after the company said orders rose. DBS Group Holdings Ltd., Southeast Asia’s biggest bank, climbed 4.7 percent in Singapore.

The Stoxx Europe 600 Index advanced 0.4 percent as basic-resources and technology shares rallied. Rio Tinto Group gained 1.4 percent in London. Infineon Technologies AG, Europe’s second-largest chipmaker, climbed 2.6 percent in Frankfurt. STMicroelectronics NV gained 3 percent in Paris.

Allied Irish Banks Plc surged 5.9 percent in Dublin after Goldman Sachs Group Inc. recommended the shares. National Bank of Greece SA, the nation’s biggest lender, led Greek stocks lower, slipping 4.5 percent in Athens.

Bernanke Testimony

The gain in U.S. futures indicated the S&P 500 may rise for a fifth day. A report from the Commerce Department today may show retail sales climbed in March for a third straight month, a sign the economic recovery is broadening. Purchases increased 1.2 percent, the biggest gain in four months, after a 0.3 percent February increase, according to the median estimate of 79 economists surveyed by Bloomberg News.

Federal Reserve Chairman Ben S. Bernanke is scheduled to testify before the Joint Economic Committee of Congress at 10 a.m. on the economic outlook.

Combined profit for S&P 500 companies will increase 30 percent from a year earlier, according to analyst estimates compiled by Bloomberg. JPMorgan Chase & Co., AMR Corp. and Yum! Brands Inc. are scheduled to post results today.

Metals, Oil

Aluminum for delivery in three months rose 0.6 percent to $2,450 a metric ton on the London Metal Exchange, after earlier reaching $2,462. Nickel advanced 1.5 percent to $25,895 a ton, extending this year’s gain to 40 percent. Zinc, tin and copper also appreciated. Gold added 0.7 percent to $1,158.43 an ounce, rising for the first time in three days. Rhodium, used in autocatalysts and jewelry, advanced 0.9 percent to $2,850 an ounce, the highest since October 2008. Crude oil for May delivery added 1.1 percent to $84.95 a barrel in New York.

Greece and Portugal led an increase in the cost of insuring against default on sovereign debt. The European Union said Portugal may need additional budget measures this year to meet its deficit target, fueling concern the Greek debt crisis may worsen. Swaps on Greece surged 28 basis points to 408.5 and Portugal jumped 13 to 168, according to CMA DataVision.

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