Australia Pausing Rate Cut on European Progress Spurs Currency: Economy

Australia unexpectedly kept interest rates unchanged as two cuts late last year help the economy weather Europe’s debt crisis, sending the nation’s currency soaring to a six-month high.

“Much remains to be done to put European sovereigns and banks on a sound footing, but some progress has been made,” Reserve Bank Governor Glenn Stevens said in a statement today announcing the official cash rate target will stay at 4.25 percent, the highest level among the world’s major developed economies.

“Financial market sentiment, though remaining skittish, has generally improved since early December.”

Qatar’s Shares Retreat on Speculation Nine-Day Rally Overdone

Qatari shares retreated for the first time in 10 days on speculation recent gains were overdone given earnings and lower dividends at the Persian Gulf nation’s banks.

Commercial Bank of Qatar (CBQK), the country’s second-biggest lender, dropped the most in almost a week. Qatar National Bank SAQ, the country’s largest bank by assets, fell 1 percent.

The QE Index decreased 0.5 percent, the most since Jan. 19, to 8,687.38 at the 1 p.m. close in Doha.

The gauge advanced 4.1 percent in the nine days through yesterday.

Asia Stocks Hold Five-Month High as Greece Weighs Global Outlook

Asian stocks rose, with the regional benchmark index trading near a five month high, as Greek lawmakers worked to secure a bailout amid warnings Europe’s crisis threatens global demand.

Japan Tobacco Inc. paced advancing shares after the company raised its earnings forecast.

Cochlear Ltd., maker of the world’s top-selling ear implant, rose the most in seven weeks in Sydney trading after posting a narrower-than-estimated first- half loss.

Chinese stocks dropped as the Ministry of Industry and Information Technology said the world’s second-largest economy faces more uncertainty at home and abroad.

U.S. Stock Futures Little Changed on Greece

U.S. stock-index futures were little changed as investors waited for Greece’s politicians to accept spending cuts needed to secure financial aid and for the Federal Reserve chairman to testify before a Senate committee.

Anadarko Petroleum Corp. (APC), the largest independent U.S. oil and natural-gas producer, rose 1 percent in German trading after reporting fourth-quarter profit that beat estimates.

Yum! Brands Inc. (YUM), the owner of the KFC and Taco Bell fast-food chains, gained 1.8 percent in early New York trading after posting quarterly net income that gained 30 percent.

KSE index touches six-month high

The Karachi Stock Exchange’s (KSE) benchmark index closed at six month high at 12,136.92 points with an increase of 154 points, on Monday, on significant buying in leading energy and banking stocks, said dealers.

“Apparently, foreign buying helped the market sustain well above the 12,000 points coveted level,” said Imtiaz Gadar, Head of Research at KASB Securities.

The benchmark KSE 100-share index increased by 154.30 points, or 1.30 percent, to six month high of 12,136.92. This is the highest closing level since August 2, 2011.

At a point of trading, the index had surged by 229.69 points to intra-day high of 12,212.31.

Gold price to rise amidst volatility

Gold prices are expected to rise this year amidst volatile markets and a global economic slowdown, said Standard Chartered Bank.

Its chief investment strategist Steve Brice said gold and gold equities remain the bank’s favoured investments to manage the threat of a loss of purchasing power.

“Within the equity space, we believe gold-related companies will also provide a good hedge against inflation.

We have seen considerable underperformance of gold equities versus the underlying commodity over the past 18 months.

As gold price assumptions are adjusted higher, we expect gold stocks to play catch-up with gold.

China May Face ‘Rough’ Landing: Lee

China’s economy may be headed for a “rough landing,” Singapore Prime Minister Lee Hsien Loong said.

“ They’ve built a lot of infrastructure.They have built a lot of capacity in many industries, autos, some of the electronics industries,” Lee said, according to a transcript of an interview airing today on CNN’s“ Fareed Zakaria GPS” program.

“There may be a rough landing, but they will get through it.”

A Chinese government report on Feb. 1 showed that export orders fell last month even as manufacturing expanded.

Summers Says U.S. Economy on ‘Right Road’

Former U.S. Treasury Secretary Lawrence Summers said the latest jobs report shows the economy is “on the right road” while Glenn Hubbard, an adviser to Republican presidential candidate Mitt Romney, downplayed the impact of recent jobs data.

“Unlike many of the favorable past reports, if you look beneath the surface of this one almost every indicator within it is favorable,” Summers said today on ABC’s “This Week,” where he appeared with Hubbard, dean of the Columbia Business School.

Employers added 243,000 jobs in January, the biggest gain in nine months, and the unemployment rate dropped to 8.3 percent from 8.5 percent in December, the Labor Department reported last week in Washington.

Regional markets to stay on growth track

The region’s stock markets are likely to continue last week’s rally this week, buoyed by robust global oil prices, better than expected US employment data for January and positive news flows from Europe which indicate the Eurozone sovereign debt crisis is manageable, analysts say.

“Investors are back in the market. In Saudi Arabia, the prevailing high oil prices and talk about the government allowing foreigners to buy and sell shares on its market are acting as catalysts, while in the UAE, the bank results, which were positive in the fourth quarter are the catalyst,” Samer Darwiche, Associate at Dubai-based Gulfmena Investments Ltd, told Gulf News by telephone.

KSE likely to consolidate around 12,000 points

The Karachi Stock Exchange (KSE) is expected to consolidate around 12,000 points threshold next week ahead of full-year financial results, particularly of banks and likely increase in foreign portfolio investment, dealers said on Saturday.

“Financial results would help the market maintain in the green territory next week,” said Furqan Punjani, an analyst at BMA Capital, adding that the market may consolidate around 12,000 points with an increase of 50-100 points.

At present, the leading benchmark of the KSE, the 100 index, is 17.38 points away from 12,000 points coveted level and standing at 11,982.62 points.