A.M. market numbers: October 30, 2009

| North American markets | International markets | Bonds | Currency | Commodities |

Asian stock markets snapped three days of losses Friday after the U.S. economy broke out of a yearlong slump, spurring hopes of improved demand for the region’s exports. European shares were mixed.

Major benchmarks from Tokyo to Sydney gained 1.5 per cent while a few markets failed to hold their gains and ended slightly down. Oil, meanwhile, hovered near $80 a barrel on expectations the U.S. expansion signals improved demand for crude.

The Commerce Department’s report that gross domestic product rose at an annual rate of 3.5 per cent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing U.S. housing market and weak consumer confidence.

It was the first growth after four straight quarters of contraction but analysts cautioned it will be difficult to sustain the pace. Much of the impetus for growth in the world’s largest economy came from government stimulus including a new retired cash for clunkers program.

In another sign of improving financial and economic conditions, Japan’s central bank said it would stop buying corporate debt in December, ending some of the emergency credit measures implemented early this year as it battled recession, plunging markets and a lending freeze. That news came as the world’s No. 2 economy reported a drop in unemployment for the second straight month in September.

Earnings also provided positive cues. Japanese electronics and entertainment giant Sony reported a smaller-than-expected quarterly loss of $289 million and trimmed its estimate of full year losses. South Korea’s Samsung, a world leader in consumer electronics, said quarterly profit tripled to a record $3.14 billion.

European markets, which had news of the U.S. growth figures while still trading Thursday, were mixed. Britain’s FTSE 100 rose 0.2 per cent but Germany’s DAX was off 0.4 per cent and France’s CAC-40 lost 0.3 per cent.

Stock futures pointed to modest losses Friday on Wall Street. Dow futures were off 28, or 0.3 per cent, at 9,875.

Hong Kong’s Hang Seng led Asia’s advance, jumping 487.88 points, or 2.3 per cent, to 21,752.87. Japan’s Nikkei 225 stock average gained 143.64, or 1.5 per cent, at 10,034.74 but South Korea’s Kospi reversed course to fall 0.3 per cent to 1,580.69.

Elsewhere, China’s Shanghai Composite Index climbed 1.2 per cent, Singapore’s market was up 0.8 per cent and Australia’s benchmark gained 1.5 per cent.

The swing higher remains vulnerable to disappointment with stocks already up massively since the global rally began in March. There are also nagging doubts whether private economic activity can sustain growth once the effects of unprecedented government stimulus spending and super-low interest rates begin to fade.

But such concerns were pushed aside in the U.S. on Thursday.

The Dow Jones industrial average had its best day since July 15, rising 199.89, or 2.1 per cent, to 9,962.58. The broader Standard & Poor’s 500 index rose 23.48, or 2.3 per cent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.8 per cent, to 2,097.55.

Oil prices hovered near $80 a barrel in Asia as the U.S. expansion raised hopes that demand for crude will improve.

Benchmark crude for December delivery was down 26 cents to $79.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.41 to settle at $79.87 on Thursday.

In currencies, the dollar fell to 90.95 yen from 91.43. The euro eased to $1.4821 from $1.4834.

(The Canadian Press)

North American markets

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Dow Jones	9,962.58	+199.89 or +2.05%	+13.52%
S&P 500	1,066.11	+23.48 or +2.25%	+18.03%
NASDAQ	2,097.55	+37.94 or +1.84%	+33.01%
TSX Composite	11,075.22	+269.89 or +2.50%	+23.23%

International markets

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	Open	Change	YTD
Nikkei	10,034.74	+143.64 or +1.45%	+13.26%
Hang Seng	21,752.87	+487.88 or +2.29%	+51.19%
SENSEX	15,896.28	-156.44 or -0.97%	+64.77%
FTSE 100	5,153.31	+15.59 or +0.30%	+16.22%
CAC 40	3,705.10	-8.92 or -0.24%	+15.14%
DAX	5,564.12	-23.33 or -0.42%	+15.67%

Bonds

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Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.08	102.51	3.49
Cdn. 30-year bond	117.10	117.60	3.97
U.S. 10-year bond	101.30	101.09	3.47
U.S. 30-year bond	103.19	102.76	4.31

Currency

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BoC Close	Today	Previous
Canadian $	0.9357	0.9372
US $	1.0688	1.0670

Euro Spot Rate	Today	Previous
Canadian $	0.6307	0.6319
Euro	1.5855	1.5824

Commodities

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Gold	AM	PM
London Gold Fix ($US)	$1044.50	$1053.00

Oil	Open	Change
WTI Crude Future (US)	$79.52	-0.35% or -0.44%

(10/30/09)