SYDNEY, April 14 — Asia’s benchmark stock gauge climbed toward its highest since May 2008. Singapore’s dollar led gains against the US currency and oil in New York rose a fourth day.

The MSCI Asia Pacific Index rose 0.2 per cent by 1:01 p.m. in Tokyo. The Hang Seng China Enterprises Index retreated as much as 2 per cent after an eight-day, 23 per cent rally. US equity-index futures climbed while the dollar dropped against most major peers. Singapore’s currency strengthened 0.6 per cent as the city left monetary policy unchanged. US oil added 0.9 per cent.

Hong Kong shares have surged this month on speculation valuations will converge with those of their mainland peers as China’s policy makers expand measures to prop up flagging growth. Data tomorrow is projected to show the world’s second- largest economy expanded at the slowest rate since 2009 last quarter. Indonesia reviews interest rates today, ahead of reports on euro-area industrial output and US retail sales data.

“China’s real rates and reserve ratios are still very high while the economy is sluggish, so more monetary easing will come and that will be very bullish for equity markets,” said Khiem Do, who helps oversee about US$60 billion (RM222.2 billion) as Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd. “There will always be some correction, but a lot of people have missed out on the rally, so there will be buying. Overseas investors are not overweight China yet so that’s another source of funds to come.”

Targets increased

The Hang Seng Index fell 0.5 per cent after its highest close since December 2007 yesterday, while the so-called H-share index pared its drop to 0.3 per cent.

Three brokerages boosted forecasts for the Hang Seng Index Monday, with Bocom International Holdings Co. expecting the measure reach to a record 32,000 by June. Credit Suisse Group AG’s year-end projection of 28,000 was beaten yesterday, while Morgan Stanley raised its 12-month target to 30,000 from 26,800.

The Shanghai Composite Index climbed 1 per cent. Subscriptions for a new round of initial public offerings will peak by April 15 and to freeze about 2 trillion yuan ($322 billion) of funds, Deutsche Bank AG strategist Yuliang Chang wrote in a note dated yesterday.

Japan’s Topix index added 0.1 per cent and South Korea’s Kospi index fluctuated. Australia’s S&P/ASX 200 index retreated 0.1 per cent.

US earnings

The S&P 500 and technology-heavy Nasdaq Composite Index rose to within 0.7 per cent of records Monday before retreating as investors awaited earnings this week from JPMorgan Chase & Co. and Johnson & Johnson to Intel Corp.

Profits at US companies are forecast to fall 5.6 per cent in the first quarter amid concern over the impact of the strong dollar and lower oil prices. At the same time, the Federal Reserve is looking to raise benchmark borrowing costs for the first time since 2006. The Stoxx Europe 600 Index added 0.2 per cent yesterday to extend its all-time high.

The yen climbed 0.3 per cent to 119.83 per dollar after ending yesterday’s session little changed. The currency is weak at the 120 level given its purchasing power parity, said Koichi Hamada, an adviser to Prime Minister Shinzo Abe on monetary policy.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its most-traded peers, was little changed today after its highest close since March 19.

Shale slump Singapore’s currency strengthened to S$1.364 per dollar after the city’s central bank said it will “maintain the policy of a modest and gradual appreciation” without adjusting the pace of its currency’s moves. Gross domestic product rose an annualised 1.1 per cent in the quarter through March from the preceding period, beating projections for a 0.2 per cent gain.

West Texas Intermediate crude traded at US$52.40 a barrel in New York. Shale output will decline in May, the Energy Information Administration said, the first time the agency forecast a decline since it began issuing monthly data in 2013. Still, crude inventories probably increased by 3.5 million barrels last week, according to a Bloomberg survey before a separate EIA report tomorrow.

Nickel for three-month delivery in London rebounded 1 per cent from the lowest level in almost two weeks. A strike is scheduled to start Tuesday at BHP Billiton Ltd’s Cerro Matoso mine in Colombia as talks to resolve a labor dispute failed. BHP’s Australian shares dropped 1.2 per cent to the lowest since Jan. 29 in Sydney. — Bloomberg