The MSCI Asia Pacific Index rose 0.2 percent to 116.04 as of 10:55 a.m. in Tokyo. It has gained 3.2 percent this week, on course for its biggest increase since the period ended Dec. 4. South Korea’s won was poised for its biggest weekly jump in 13 months after Finance Minister Yoon Jeung Hyun said growth will likely exceed 5 percent this year.

Emerging-market equity and bond funds received net inflows in the week to June 16 as appetite for higher-yielding assets revived after concerns eased that Europe’s debt crisis will spread, EPFR Global said. Thailand will report today that exports climbed in May for a seventh month, while Taiwan will say next week that overseas orders gained, according to separate Bloomberg surveys of economists.

“There has been optimism that the impact of Europe’s problem on the Asian economy may be limited, supporting the purchase of regional currencies,” said Minori Uchida, a senior analyst in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd.

The MSCI Emerging Markets Index rose 0.4 percent, extending an eight-day, 6.5 percent rally. The Shanghai Composite Index climbed 0.2 percent and the FTSE Bursa Malaysia KLCI Index added 0.5 percent. The Hang Seng China Enterprises Index, a measure of Chinese shares traded in Hong Kong, rallied 0.9 percent, set for a seventh day of gains that will be its longest winning streak since April, 2007.

Currencies Gain

South Korea’s won advanced 0.5 percent to 1,207.30 per dollar as foreigners pumped money into the stock market for a sixth day, the longest run of net purchases in two months. The Taiwan dollar gained 0.3 percent to 45.95. Thailand’s exports increased 34 percent from a year earlier, while Taiwan’s export orders probably grew 36 percent, the Bloomberg surveys showed.

Emerging equities funds took in $2.5 billion in the past week, the second-largest inflows this year, while emerging bond funds received $659 million, EPFR said in a statement.

“I don’t think there is a double dip recession on the cards for the U.S.,” Michael Yoshikami, chief investment strategist at YMCNet Advisors, said in a Bloomberg Television interview. “I think the recovery is in place even though it is going to be a very slow, sluggish recovery.”

The cost of protecting Asia-Pacific bonds from non-payment fell, according to traders of credit default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan declined 3 basis points to 126 basis points, on track for its lowest close in a month, according to Royal Bank of Scotland Group Plc and CMA DataVision in New York.

Spain yesterday sold 3.5 billion euros ($4.3 billion) of 10-year and 30-year bonds at yields lower than the prevailing market rates, attracting bids worth as much as 2.45 times the securities on offer.

Technology Stocks Rally

Asian technology shares gained after shares in Apple Inc. rallied 1.7 percent to a record yesterday. Morgan Stanley said the customer base for the iPhone may top 100 million users next year, with demand for the soon-to-be-released iPhone 4 helping to persuade more buyers to embrace the smartphone.

Softbank Corp., the exclusive supplier of the iPhone in Japan, climbed 0.8 percent to 2,443 yen. Nintendo Co., the world’s largest maker of video-game players, advanced 2.1 percent, its seventh consecutive gain.

Wintek Corp., a component maker for Apple Inc.’s iPad and iPhones, gained 2.8 percent to NT$25.50, the highest since May 10, after Morgan Stanley said in a report this week the iPhone customer base may exceed 100 million users next year. Catcher Technology Co. advanced 1.3 percent to NT$70.50. The company supplies metal parts for the iPhone, Yuanta Securities Co. said.

Doubts Remain

Japan’s Nikkei 225 Stock Average and futures on the Standard & Poor’s 500 Index were little changed today. Toyota Motor Corp., which gets 28 percent of its sales from North America, lost 2.3 percent in Tokyo. Acom Co. led Japanese consumer lenders lower as stricter loan rules take effect today.

“The economic climate has to further improve in countries like the U.S. for the stock market to enter a full-fledged recovery phase, though investors are less anxious about Europe,” said Kazuhiro Takahashi, a general manager at Tokyo- based Daiwa Securities Capital Markets Co.

Gold may advance to a record as investors take refuge in the precious metal to protect their wealth from Europe’s financial turbulence. Bullion for immediate delivery traded at $1,242.9, after jumping as much as 1.8 percent yesterday. The metal touched a record $1,252.11 on June 8. Newcrest Mining Ltd., Australia’s largest gold producer, gained 1.8 percent in Sydney.

Bullish on Gold

“We are still very bullish on gold,” said Hwang Il Doo, a senior trader with KEB Futures Co. in Seoul. “Gold will remain the main beneficiary of what’s happening in Europe unless the picture takes a turn for the better.”

Crude oil fell for a second day in New York, dropping 0.5 percent to $76.44 a barrel, amid doubts about the pace of the economic recovery in the U.S., the world’s largest energy consumer. U.S. fuel consumption fell 0.9 percent to the lowest level in five weeks in the seven days ended June 11, the Energy Department reported June 16.

“The U.S. economy is facing a major structural adjustment in the wake of the financial crisis and subsequent economic slump,” said Toby Hassall, a research analyst at CWA Global Markets Ltd.

Posted by Shayne Heffernan on Jun 18th, 2010and filed underAsia, BRIC, Equities, Latest News, Limelight, Markets, News & Events.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site