The yen rose against higher-yielding currencies and advanced the most this month versus the dollar as Asian stocks declined before a report that may show manufacturing slowed in the U.S. Emerging-market shares fell, following the biggest drop for American equities in five weeks.
The yen advanced as much as 1.8 percent versus the dollar, the most since May 29, and was up 1.2 percent as of 10:05 a.m. in London. It strengthened 1.4 percent compared with the Brazilian real and the Australian dollar. The Standard & Poor’s 500 Index slumped 2.4 percent yesterday after reaching the most expensive level relative to earnings since October. The MSCI Asia Pacific Index lost 1.6 percent.
The Federal Reserve may say today that U.S. industrial production dropped for a seventh month in May, falling 1 percent, according to a Bloomberg survey of 73 economists. The ZEW Center for European Economic Research said its index of investor confidence rose to 44.8 in June, more than economists forecast. The euro extended gains against the dollar, rising 0.8 percent.
(ARTICLE CONTINUES BELOW)
“We have had better-than-expected data in the recent past but we cannot say it’s a sign we are out of the woods,” said Mickael Benhaim, who manages about $32 billion as head of global bonds at Pictet & Cie Banquiers in Geneva. “We’re not yet ready for a full recovery.”
Gold rose 0.7 percent to $934.30 an ounce in London, advancing for the first time in five days. Crude oil rose as much as 1 percent to $71.34 a barrel after falling below $70 in New York for the first time in a week. Copper was little changed on the London Metal Exchange.