* Gold at record above $1,060 as dollar struggles
* U.S. stocks up, emerging shares at year high
* Alcoa's profit lifts hopes for Q3 earnings season
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Jennifer Ablan
NEW YORK, Oct 8 (Reuters) - Gold climbed to a record on
Thursday as the dollar struggled, while U.S. stocks rose after
Alcoa <AA.N> began the third-quarter earnings season with an
unexpected profit.
Major U.S. equity indexes rose 1 percent, led by Alcoa, a
day after the Dow component and the largest American aluminum
producer posted its first profit after a string of quarterly
losses. Alcoa cited improving metal prices and cost savings as
the main reasons for its profitable quarter. []
Alcoa, which posted losses in the past three quarters, is
the first major company to release earnings in the U.S.
third-quarter reporting season.
Its profit surprise also played a factor in world equity
markets on Thursday, as investors have been scouring for signs
of any fundamental improvement in organic growth. The MSCI
world equity index <.MIWO00000PUS> rose 1.42 percent to
1,138.96, near the year's high of 1,150.42.
For their part, the Dow Jones industrial average <>
was up 78.07 points, or 0.80 percent, at 9,803.65 while the
Standard & Poor's 500 Index <.SPX> was up 8.89 points, or 0.84
percent, at 1,066.47. The Nasdaq Composite Index <> was
up 19.69 points, or 0.93 percent, at 2,130.02.
But gold stole the spotlight again.
The yellow metal <XAU=> topped $1,060 per ounce to mark a
record high for the third session in a row, versus its late
New York Wednesday quote of $1,043.70.
The move in spot bullion has primarily been driven higher
by the weakening dollar, which makes the dollar-denominated
metal more attractive to investors.
In some currencies -- the high-flying Australian dollar,
for example -- gold has actually fallen in price this year.
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For a graphic on this, click http://r.reuters.com/fex62f.
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"Investors are turning towards gold as a hedge in dollar
weakness," said Adrian Koh, an analyst at Phillip Futures in
Singapore.
The dollar was down against a basket of major
trading-partner currencies, with the U.S. Dollar Index <.DXY>
down 0.90 percent at 75.807, close to its year lows and below
a previous session close of 76.494.
The currency has been hit by a combination of expectations
that U.S. interest rates will stay low for some time and a
belief that the global economy is on the mend, easing the
motivation behind last year's flight to dollar safety.
The euro <EUR=> was up 0.85 percent at $1.481 from a
previous session close of $1.4685, while against the Japanese
yen, the dollar <JPY=> was down 0.35 percent at 88.27 from a
previous session close of 88.580.
The Australian dollar <AUD=> gained 1.4 percent, still
benefiting from this week's rate hike. It has now gained
nearly 28 percent against the U.S. dollar this year.
MARKETS ON A HIGH EVERYWHERE
Emerging markets also got a boost from rallying world
indexes. The MSCI Emerging Markets <.MSCIEF> was up 1.39
percent at 941.77, after earlier climbing to 942.32, a new
high for the year.
The index has gained 65 percent so far this year.
The pan-European FTSEurofirst 300 <> was up 1.26
percent at 1,001.19, boosted in part by commodity-related
stocks as well as the bullish sentiment over Alcoa's
earnings.
"There is a general sense that 'Quarter 3' earnings are
going to be more positive than expectations," said Bernard
McAlinden, market strategist at NCB Stockbrokers.
U.S. Treasury debt prices reversed the morning's gains and
fell early Thursday afternoon following an auction of $12
billion of reopened 30-year bonds.
The benchmark 10-year U.S. Treasury note <US10YT=RR>
slipped 8/32 in price, with its yield rising to 3.22 percent
from 3.18 percent late on Wednesday, while the 2-year U.S.
Treasury note <US2YT=RR> was down 2/32, with the yield at
0.897 percent, up from 0.856 percent late on Wednesday.
The 30-year U.S. Treasury bond <US30YT=RR> was down 14/32,
pushing its yield up to 4.03 percent from late Wednesday's
4.00 percent.
(Additional reporting by Jeremy Gaunt; Editing by Jan
Paschal)
