Investors are the most bearish on Australian stocks since 2007 after last month’s rally pushed up valuations by the most since April and the central bank signaled a reluctance to add stimulus to the economy.
Australia’s federal and state governments have the capacity to increase debt levels to fund infrastructure projects, according to Colonial First State , the fund management arm of Commonwealth Bank of Australia .
Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion, commented on Europe’s debt crisis in a Bloomberg TV interview today with Susan Li.
The euro climbed for the first time in three days versus the dollar as European stocks rose. Emerging-market currencies weakened and gold fell on the outlook for Federal Reserve stimulus and as a typhoon wreaked damage in the Philippines. U.S. shares rose to trade near a record.
Hong Kong stocks slipped, with the city’s benchmark measure on course for a second weekly decline, before a U.S. jobs report and data that may show growth in Chinese exports and imports slowed last month.