Asian shares mostly higher on Wall Street lead
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HONG KONG – Asian markets mostly edged higher on Monday, taking a cue from a Wall Street rally fuelled by upbeat US and Chinese manufacturing data as well as strong US auto sales.
The euro eked out a small gain after suffering selling pressure last week on expectations the European Central Bank (ECB) will cut interest rates this week.
Hong Kong rose 0.41 percent, Sydney added 0.11 percent, Shanghai was 0.39 percent higher and Seoul fell 0.49 percent.
Tokyo and Mumbai were closed for public holidays.
US shares finished on a high Friday after figures showed manufacturing activity grew at a faster pace in October than had been expected. That came hours after China said its own purchasing managers’ index (PMI) came in at its highest level in 18 months.
News that October auto sales from the three largest US manufacturers – Chrysler, Ford and General Motors – saw double-digit percentage gains supported Wall Street. The Dow added 0.45 percent, the S&P 500 tacked on 0.29 percent and the Nasdaq was flat.
Over the weekend data showed signs of growth in China’s services sector, as the official non-manufacturing PMI picked up pace and recorded its strongest reading in 14 months.
In China, attention is turning to a Communist Party policy meeting due to take place later this month, with traders looking for possible economic reforms.
In currency trade the euro ticked up slightly after tumbling last week on expectations the ECB will cut interest rates after figures showed inflation in the region at a four-year low. The euro bought $1.3494, compared with $1.3482 in New York but well down from $1.3750 on Wednesday. It also sat at 133.26 yen against 133.10 yen in New York.
The dollar rose to 98.74 yen from 98.69 yen in New York. The greenback is being buoyed by speculation the Federal Reserve will begin winding down its stimulus programme next month after it last week gave an upbeat assessment of the US economy.
Oil prices edged up in electronic trade. New York’s main contract West Texas Intermediate light sweet crude for delivery in December was up three cents at $94.64 a barrel and Brent North Sea crude for December rose nine cents to $106.00.
Gold dropped to $1,314.79 at 0220 GMT compared with $1,316.15 on Friday.
