Oct. 19 (Bloomberg) -- Stocks rose a second day, the euro strengthened and bond risk fell amid speculation leaders will stem the region’s debt crisis. U.S. equity futures declined after Apple Inc.’s profit missed analyst estimates.

The MSCI All Country World Index rallied 0.5 percent as of 8:04 a.m. in London and the Stoxx Europe 600 Index added 0.4 percent. Standard & Poor’s 500 Index futures dipped 0.5 percent and Nasdaq-100 Index contracts lost 1 percent. The euro gained 0.3 percent to $1.3792, while South Korea’s won led emerging- market currencies higher. The Markit iTraxx Asia index of debt default risk sank six basis points. Yields on German 10-year bunds increased two basis points to 2.03 percent.

Analysts partly attributed stock gains to a Guardian newspaper report that said Germany and France agreed to boost the region’s rescue fund, even after a person with direct knowledge told Bloomberg News no deal has been reached and Moody’s Investors Service cut Spain’s credit rating. While Apple’s income trailed the average estimate by 3.5 percent, Bank of America Corp. swung to a profit and Intel Corp. forecast fourth-quarter sales that topped some analyst predictions.

“Whatever progress we get out of the euro zone will certainly help add some calm to the market,” Kelvin Tay, the Singapore-based chief investment strategist at UBS Wealth Management, said in a Bloomberg Television interview. Investors will still remain “very wary” before leaders meet this weekend to discuss the crisis, he said.

More than four shares rallied for every one that fell on the Stoxx 600, which snapped a two-day, 1.3 percent drop. The MSCI Asia Pacific Index increased 0.8 percent, helping the gauge rebound from a 2.4 percent drop yesterday that was the steepest since Oct. 3.

Stocks Climb

Commonwealth Bank of Australia gained 1.2 percent after Reserve Bank Assistant Governor Guy Debelle said the nation’s banks are benefiting from rising domestic deposits and U.S. investment in their debt, shielding them from stresses experienced by European lenders. TPK Holding Co., a supplier of touch panels for Apple devices, retreated 6.9 percent in Taipei.

Futures signal the S&P 500 may give up some of yesterday’s 2 percent rally. Among the 38 index members that have released quarterly results since Oct. 11, more than 60 percent have beaten analysts’ profit estimates. Apple, the world’s largest company by market value, sank 6.7 percent to $394.05 after it missed analyst estimates for the first time since at least 2004. The maker of iPhones and iPads makes up about 15 percent of the Nasdaq-100 Index’s value.

Morgan Stanley will release its third-quarter results before the start of U.S. trading today.

‘No Conviction’

“There’s just no conviction that seems to survive,” John Carey, a Boston-based money manager at Pioneer Investments, said in a telephone interview. The firm oversees about $250 billion. “Apple’s results have disappointed some people. People are wondering where the economy is going, what earnings will look like and whether Europe will work its way through this crisis.”

Treasury 10-year yields were little changed at 2.18 percent before U.S. data today that may show consumer prices rose 0.3 percent in September, the median forecast in a Bloomberg News survey of economists. That would follow a 0.4 percent increase in August. Separate figures may show housing starts climbed to 590,000 last month from 571,000 in September.

The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan fell six basis points to 201 basis points, Royal Bank of Scotland Group Plc prices show. That would be the lowest closing level since Sept. 20, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.

Won, Ringgit

The won rose 1.2 percent to 1,132.30 per dollar after South Korea and Japan said they will increase a currency-swap accord to $70 billion. The Malaysian ringgit strengthened 0.8 percent to 3.1080 and the Taiwan dollar added 0.3 percent to NT$30.099.

The euro strengthened against 11 of its 16 major counterparts. The shared currency appreciated yesterday after the Guardian said Germany and France agreed before a weekend summit to boost the 440-billion euro ($604 billion) European Financial Stability Facility to 2 trillion euros.

The two nations are also in favor of recapitalizing the region’s banks to meet a 9 percent capital ratio that may be required by the European Banking Authority, the newspaper reported. A spokesman for German Chancellor Angela Merkel declined to comment.

Germany and France have yet to agree on how to bolster the European bailout fund as they seek to overcome technical hurdles and to complete a plan to stem to debt crisis, said a person with direct knowledge of the talks. FTSE 100 Index futures jumped 1.3 percent.

‘Premature’

The reported increase in “the European Financial Stability Fund is really significant and the market viewed that as a high positive,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Still, at this stage, it looks all premature and nothing has been agreed.”

Oil for November delivery decreased 0.1 percent to $88.26 a barrel in afterhours electronic trading on the New York Mercantile Exchange. Futures advanced 2.3 percent yesterday to settle at the highest price since Sept. 15, helping the S&P GSCI Index of commodities to a 0.7 percent gain.

Three-month copper declined 1.3 percent to $7,352.50 a metric ton on the London Metal Exchange, a third day of losses. Wheat for December delivery advanced as much as 1 percent to $6.3175 a bushel before trading at $6.275.

--With assistance from Nick Baker and Rita Nazareth in New York, Sarah McDonald in Sydney, Ranjeetha Pakiam in Kuala Lumpur and Nick Gentle in Hong Kong. Editors: James Regan, Linus Chua