Jan. 13 (Bloomberg) -- Asian stocks rallied to a one-month high, while the euro strengthened and oil advanced on signs Europe's debt crisis is easing. Gold declined.
The MSCI Asia Pacific Index climbed 0.9 percent as of 3:29 p.m. in Tokyo, set for a fourth weekly gain. The Nikkei 225 Stock Average rallied to a one-week high and Standard & Poor's 500 futures increased. Oil jumped 1.1 percent after falling yesterday as a European Union official said an Iranian oil embargo may be delayed. The euro strengthened 0.4 percent to $1.2865, a performance second only to South Korea's won among 16 major currencies. Gold retreated from a one-month high.
Asian stocks are poised for the longest run of weekly gains in a year, led by energy producers, retailers and automakers. Borrowing costs for Spain and Italy fell at debt sales yesterday, while European Central Bank President Mario Draghi said he saw "tentative signs" of stabilization in the euro region. Data today is expected to show U.S. consumer confidence is at a seven-month high, based on the median forecast in a Bloomberg survey of economists.
ECB policy makers "have stabilized the whole situation," said Diane Lin, a fund manager at Sydney-based Pengana Capital Ltd., which manages about $1.1 billion. "We should see some good performances in Asian equity markets."
The MSCI Asia Pacific Index has rallied 9.1 percent from a two-year low in October, pushing valuations to 12.3 times estimated profit, based on data compiled by Bloomberg. About two stocks gained for each that fell in the index today. The Nikkei 225 advanced 1.4 percent and Australia's S&P/ASX 200 added 0.4 percent.
China Stocks
The S&P 500 rose in each of the last four days, closing yesterday at the highest level since July. JPMorgan Chase & Co., the most profitable U.S. bank, is scheduled to report earnings today and Wells Fargo & Co., Citigroup Inc. and Goldman Sachs Group Inc. will release results next week.
The Shanghai Composite Index slid 1.2 percent. The gauge has fallen for the past three days as Credit Suisse Group AG and Royal Bank of Scotland Group Plc said inflation would hamper the government's ability to ease monetary policy.
"An immediate reserve-ratio cut probably won't come soon given policy makers' concern about a possible rebound in inflation," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million.
Belle International Holdings Ltd. tumbled 7.7 percent in Hong Kong, poised for the biggest drop in three months. China's biggest shoe retailer reported slower same-store sales growth.
Oil, Gas
Oil declined 1.6 percent this week. An EU embargo on imports of Iranian oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies, according to an official with knowledge of the talks that declined to be identified because the talks are private.
Natural gas futures in New York fell for a fifth day to trade near the lowest price in more than two years. Gas for February delivery slipped 0.3 percent to $2.69 per million British thermal units on the New York Mercantile Exchange.
Gold for immediate delivery fell as much as 0.9 percent to $1,635.05 an ounce. Silver declined as much as 2 percent, palladium dropped 0.9 percent and platinum fell 0.6 percent.
The euro touched a one-week high of $1.2879 before Italy sells bonds due in 2014 and 2018. The 17-nation currency is heading for a 1.2 percent climb against the dollar this week, the first advance since the period ended Dec. 2.
Positive Auctions
"The European liquidity operations are having a positive effect on risk appetite at the moment," said Chris Weston, an institutional trader at IG Markets Ltd. in Melbourne. "The bond auctions are becoming more positive and yields are declining and that's having a positive impact on euro."
The won advanced 0.9 percent to 1,148.40 per dollar after the Bank of Korea kept borrowing costs unchanged at 3.25 percent for a seventh month to support the economy. Taiwan's dollar rose toward a two-month high on speculation President Ma Ying-jeou, who has improved economic ties with China, will be re-elected tomorrow. The currency gained 0.2 percent to NT$29.953 versus the greenback.
The cost of protecting Asia-Pacific corporate and sovereign bonds from non-payment fell, according to traders of credit- default swaps. The Markit iTraxx Asia index of 40 investment- grade borrowers outside Japan declined four basis points to 203, Royal Bank of Scotland Group Plc prices show. That would be the lowest close since Jan. 4, according to data provider CMA.