Stocks rallied, extending a record for the Standard & Poor’s 500 Index, as stronger-than-forecast growth in jobs fueled optimism in the world’s largest economy. The dollar erased losses and Treasuries slid.
Most Chinese stocks fell as investors weighed the implications of Shanghai Chaori Solar Energy Science & Technology Co.’s bond default and prospects for economic reforms at the National People’s Congress.
The growing risk of default by Shanghai Chaori Solar Energy Science & Technology Co. may become China’s “Bear Stearns moment,” prompting investors to reassess credit risks as they did after the U.S. securities firm was rescued in 2008, according to Bank of America Corp.
Asian stocks advanced, with the regional benchmark gauge ending at a six-week high, as telecommunications companies led gains. Japanese shares rose after the yen weakened and an advisory committee said the world’s largest pension fund doesn’t need a domestic-bond focus.
China’s Finance Minister Lou Jiwei said growth as low as 7.2 percent would meet this year’s target of “about” 7.5 percent as he tried to moderate expectations for an economy at risk from swelling debt.