Taiwan Bonds Drop a 3rd Day, Currency Rises on Optimism for Global Growth

Taiwan’s government bonds dropped for a third day and the local dollar strengthened after reports that showed better-than-forecast growth in U.S. jobs, fueling optimism the global economy is recovering.

The Taiex (TWSE) index of shares rallied 0.9 percent after overseas investors bought $1.1 billion more Taiwanese stocks than they sold in the last five days, taking net purchases for the year to $2.1 billion, according to exchange data.

The 243,000 increase in American payrolls was the most since April and exceeded all forecasts.

The unemployment rate of the world’s biggest economy dropped to 8.3 percent, the lowest since February 2009.

Treasuries Fall as Employment Gains Cast Doubt on Fed’s Low-Rate Policy

Treasuries declined after the U.S. jobless rate unexpectedly fell to the lease in three years, raising skepticism about Federal Reserve Chairman Ben S. Bernanke’s extended low-rate policy and limiting demand for the safety of U.S. debt.

Yields on 30-year bonds reached the highest level in more than a week as the economy added more jobs in January than forecast, easing concern Europe’s debt crisis is stalling the U.S. recovery.

The difference between yields on 10-year notes and the inflation-indexed securities of the same maturity touched the widest since October. The U.S. will sell $72 billion in notes and bonds next week.

S&P 500 Extends Best Start to Year Since 1987 as Bonds Fall on Jobs Report

Stocks surged, extending the best start to a year for the Standard & Poor’s 500 Index since 1987, and Treasuries slid as better-than-forecast growth in U.S. jobs bolstered optimism in the economy. Lead, aluminum and cotton led commodities higher while gold, silver and natural gas fell.

The S&P 500 increased 1.5 percent to 1,344.90 at 4 p.m. in New York and is up 6.9 percent in 2012. Yields (USGG10YR) on 10-year U.S. Treasury notes climbed 11 basis points to 1.93 percent, the biggest increase since November.

The Dollar Index (DXY) slipped 0.1, erasing earlier gains. Oil rebounded from a six-week low.

Facebook Valued at $94B in Private Auction

The social-networking company that’s preparing for an initial public offering, had a valuation of at least $94 billion yesterday in an auction of its shares on the private market.

Shares Post Inc. completed an auction of 100,000 shares of Facebook’s Class B common stock, according to an e-mail obtained. The shares were sold for a clearing price of $40 each, valuing the company at $94 billion based on a fully diluted share count of about 2.35 billion, according to Shares Post.

Facebook filed this week to raise at least $5 billion in the largest Internet IPO on record.

Euro Falls on Concern Greek Talks Will Stall; Yen Approaches Postwar High

The euro weakened versus the yen and the dollar as Greece struggled to reach an agreement with bondholders on cutting the nation’s debt burden, stoking concern Europe’s crisis will deepen.

The common currency fell against 14 of its 16 major counterparts as Spanish bonds declined after the nation sold debt today.

The yen rose to within 1 percent of a postwar high against the dollar, prompting speculation Japan will intervene to limit the currency’s gains.

The euro briefly erased losses after China’s Premier Wen Jiabao said his nation supports European efforts to stabilize the 17-nation currency.

Asian Stocks Rise for Third Day on Global Outlook; Glitch Hits Tokyo Trade

Asian stocks advanced for a third day, with the regional benchmark index heading for its highest close in three months, as manufacturing gained in the U.S. and Europe, boosting confidence the global economy is recovering.

LG Electronics Inc. (066570), the world’s No. 3 maker of mobile phones, jumped 7.4 percent in Seoul.

Toyota Motor Corp., the world’s largest carmaker by market value, advanced 1.8 percent after car sales in the U.S. increased last month.

Lynas Corp. surged 19 percent in Sydney after the rare earths supplier won approval to start production in Malaysia.

European Stocks Are Little Changed; Xstrata Shares Jump on Glencore Talks

European (SXXP) stocks were little changed as Glencore International Plc’s talks to buy Xstrata Plc (XTA) boosted mining companies, offsetting declines at Royal Dutch Shell Plc (RDSA) and Unilever.

U.S. index futures were little changed, while Asian shares rose.

Xstrata jumped 10 percent after confirming that Glencore made an approach about an offer for the coal, copper and nickel miner.

Royal Dutch Shell Plc and BP Plc (BP/), Europe’s two biggest oil companies, fell more than 1 percent.

Unilever dropped 4 percent as the world’s second-largest consumer-goods maker posted revenue growth that missed analysts’ estimates.

U.S. Stock Futures Little Changed Before Data

U.S. stock-index futures were little changed, erasing earlier gains, before a report that may show initial claims for jobless benefits in the world’s largest economy fell.

Qualmish (QCOM) Inc., the world’s biggest maker of mobile-phone chips, climbed 4.8 percent in early New York trading after raising its sales and profit forecasts for this quarter and the year.

Las Vegas Sands Corp. (LVS) lost 0.7 percent even after profit excluding some items matched analyst estimates.

Standard & Poor’s 500 Index futures expiring in March slid less than 0.1 percent to 1,319.7 as of 11:18 a.m. in London, after earlier rising as much as 0.4 percent.

European Stocks Advance on Signs Manufacturing Growth is Gaining Traction

European (SXXP) stocks advanced for a second day, with the Stoxx Europe 600 Index extending its best start to a year since 1998, amid signals that manufacturing growth is gathering pace from America to China.

U.S. index futures climbed, while Asian shares were little changed.

Car makers and banks led gains.

ICAP Plc (IAP) jumped 6.6 percent after saying annual pretax profit will be at the “upper end” of the range of analysts’ estimates.

RWE AG (RWE) climbed after Morgan Stanley added the stock to its best ideas list.

Is Facebook a wise investment?

A report published by the Wall Street Journal Friday has touched off a flurry of speculation that Facebook could file IPO papers with the U.S. Securities and Exchange Commission as early as Wednesday.

In an interview with CTV’s Canada AM, IT and finance expert Dave Valliere says the timing of the sale begs the question: why now?

Valliere, who chairs the Ted Rogers School of Management Entrepreneurship and Strategy at Ryerson University in Toronto, says companies will often decide to go public when they need an injection of cash.

“That’s useful if you have some great projects in mind.