Asian markets mostly up after US jobs data
Indian stock brokers react while watching the Bombay Stock Exchange (BSE) index on their trading terminal in Mumbai, India, Monday, Dec. 9, 2013. India’s Sensex jumped 1.7 percent to a record high after sweeping victories for India’s pro-business opposition party in state elections suggested it will win national polls in May. (AP Photo/Rajanish Kakade)
HONG KONG—Asian markets mostly rose on Monday and the dollar edged higher against the yen as Wall Street rallied in response to a surprisingly sharp fall in the US jobless rate.
Japanese shares enjoyed healthy gains despite the government’s downgrade of third-quarter growth, which has raised questions about the strength of a recovery fuelled by government spending.
Tokyo jumped 2.29 percent, or 350.35 points, to 15,650.21 and Seoul climbed 1.01 percent, or 19.97 points, to 2,000.38. But Sydney fell 0.80 percent, or 41.6 points, to 5,144.4.
Shanghai was flat, edging 1.09 points higher to end at 2,238.20 and Hong Kong added 0.29 percent, or 68.07 points, to close at 23,811.17.
The Sensex in Mumbai surged 1.57 percent, or 329.89 points, to a record close of 21,326.42 after the main opposition Bharatiya Janata Party, widely seen as business-friendly, recorded a string of victories in state elections.
Traders took their cue from New York, where the three main indexes posted solid gains Friday after the Labor Department said the jobless rate dropped to a five-year low of 7.0 percent in November, from 7.3 percent in October.
It also said the economy added a healthy 203,000 jobs.
The upbeat data increase the chances that the Federal Reserve will begin to wind down its stimulus programme sooner rather than later.
Fears of a reduction in the Fed’s $85 billion a month bond-buying scheme—which has been credited with fueling an equities rally in world markets—pushed down stocks last week.
However, analysts said it may hold off any taper at its December meeting because the pace of jobs growth is still below the levels seen at the start of the year, while economic growth in October-December is expected to be sluggish.
They forecast that the central bank will wait to see whether the jobs figures can be sustained over another month.
The Dow surged 1.26 percent, the S&P 500 added 1.12 percent and the Nasdaq jumped 0.73 percent Friday.
“The correction stage of the US shares prior to the employment data release is over and there is greater optimism in the market, buoyed by the reaction to the strong employment figures,” Mitsushige Akino, fund manager at Ichiyoshi Asset Management, told Dow Jones Newswires.
On forex markets, the dollar climbed against the yen since an end to the stimulus would mean fewer dollars circulating in financial markets, pushing up demand.
The dollar bought 103.05 yen Monday compared with 102.85 on Friday in New York.
The euro fetched 141.15 yen, levels not seen since October 2008, compared with 141.03 yen on Friday. It stood at $1.3699 against $1.3705.
The euro was supported by the European Central Bank’s decision last week to delay any new interest rate cuts despite prolonged low inflation.
Japanese economic growth slows
Japan said Monday that economic growth in the three months to September slowed to 0.3 percent quarter-on-quarter, less than the 0.5 percent initially stated and well down from the 0.9 percent in the previous three months.
While analysts tipped a pick-up in pace in October-December they remain divided over whether stimulus policies—which stoked impressive increases earlier in the year—will cement lasting growth.
Shanghai ended flat despite official figures Sunday showing a bigger-than-expected trade surplus of $31.1 billion in October.
In India dealers cheered the BJP’s election success, which raised hopes it could come to power with decisive strength in a general election in May and introduce pro-market reforms to boost the ailing economy.
The rupee also strengthened to 60.84 to the dollar at one point, its strongest since August before easing slightly to 61.15. It had closed on Friday at 61.42.
On oil markets New York’s main contract, West Texas Intermediate for January delivery, was up seven cents at $97.72 a barrel in afternoon trade. Brent North Sea crude for January fell nine cents to $111.52.
Gold fetched $1,228.36 per ounce at 1144 GMT compared with $1,229.14 on Friday.
In other markets:
— Taipei rose 0.92 percent, or 76.90 points, to 8,444.62.
Taiwan Semiconductor Manufacturing Co. gained 1.94 percent to Tw$105.0 while Hon Hai Precision was 1.40 percent higher at TW$79.6.
— Manila slipped 0.10 percent, or 6.00 points, to close at 6,008.94.
Ayala Land shed 2.03 percent to end at 26.55 pesos while Philippine Long Distance Telephone fell 0.68 percent to 2,612 pesos.
— Wellington advanced 0.10 percent, or 4.78 points, to 4,718.31.
Telecom added 1.97 percent to NZ2.33 after selling its Australian arm AAPT, while Fletcher Building fell 1.24 percent to NZ$8.85.
— Jakarta closed up 0.80 percent, or 33.55 points, at 4,214.34.
Hero Supermarket gained 1.04 percent at 2,425 rupiah, while miner Aneka Tambang lost 0.80 percent to 1,240 rupiah.
— Kuala Lumpur gained 0.82 percent, or 14.92 points, to 1,841.87.
SapuraKencana Petroleum rose 2.1 percent to 4.47 ringgit, while budget carrier AirAsia lost 0.4 percent to 2.41 ringgit.
— Singapore ended flat, edging down 0.53 points to 3,113.64.
Oversea-Chinese Banking Corporation was down 0.10 percent to Sg$10.04, while oil rig maker Keppel Corp rose 1.19 percent to Sg$11.03.
— Bangkok rose 0.43 percent, or 5.85 points, to 1,367.42.
Coal producer Banpu was unchanged at 31.25 baht, and energy gaint PTT Plc gained 0.66 percent to 305.00 baht.
