Asia shares up on Wall St record, dollar slips against pound

A man walks by an electronic stock board of a securities firm in Tokyo, Tuesday, July 1, 2014. Asian markets advanced Wednesday, taking a strong lead from a record close on Wall Street, while a weaker yen helped Tokyo add to the previous day’s healthy gains. AP

HONG KONG–Asian markets advanced Wednesday, taking a strong lead from a record close on Wall Street, while a weaker yen helped Tokyo add to the previous day’s healthy gains.

The dollar sat at more than five-and-a-half-year lows against the pound after a strong set of manufacturing figures out of Britain.

Investors are also eyeing the release later in the week of closely watched US jobs figures that will provide fresh clues about the strength of the recovery in the world’s No. 1 economy.

Tokyo rose 0.29 percent, or 43.77 points, to 15,369.97, Sydney added 1.48 percent, or 79.5 points, to 5,455.4 and Seoul put on 0.81 percent, or 16.28 points, to close at 2,015.28.

Shanghai ended 0.44 percent, or 9.04 points, higher at 2,059.42 while Hong Kong advanced 1.55 percent, or 358.90 points, to 23,549.62.

US shares jumped in response to news out of China that a survey of manufacturing activity in June hit its highest level this year, suggesting a growth slowdown may have bottomed out. Traders were also boosted by surprisingly strong figures for US auto sales.

The Dow climbed 0.77 percent Tuesday and the S&P 500 added 0.67 percent–both ending at all-time highs. The Nasdaq surged 1.14 percent.

US jobs report in view  

Investors were unfazed by the Institute for Supply Management’s manufacturing purchasing managers’ index of manufacturing activity, which dipped marginally in June.

Focus now turns to the release of non-farm payrolls figures from the US Labor Department.

“Upcoming US jobs data should help to reinforce hopes that the US economic recovery remains on track,” Mizuho Securities senior technical analyst Yutaka Miura told Dow Jones Newswires.

On currency markets, the dollar headed back toward 102 yen after sinking over the past few days. In New York on Tuesday the greenback rose to 101.53 yen from 101.40 yen in Tokyo earlier in the day.

In Asian business on Wednesday the unit sat at 101.55 yen. The euro bought $1.3678 and 138.90 yen in Tokyo against $1.3677 and 138.88 yen in New York.

The dollar was also under pressure against the pound after a surprise rise in British manufacturing data for June.

The pound bought $1.7147 in Tokyo after hitting $1.7166 late Tuesday, the highest level since October 2008.

Currency dealers have been moving into the pound in recent weeks after the head of the Bank of England suggested interest rates could rise sooner than initially thought as the economy picks up pace.

On oil markets US benchmark West Texas Intermediate for August delivery rose five cents to $105.39, while Brent crude dipped six cents to $112.23 in afternoon trade.

Gold fetched $1,326.03 an ounce at 1040 GMT compared with $1,325.00 late Tuesday.

In other markets: 

— Taipei rose 0.46 percent, or 43.04 points, to 9,484.96.

Taiwan Semiconductor Manufacturing Co. gained 3.52 percent to Tw$132.5, while Hon Hai Precision Industry closed 0.98 percent higher at Tw$103.0.

— Wellington was marginally higher, adding 3.12 points to 5,149.39.

Chorus edged up 0.58 percent to NZ$1.735 and Fletcher Building ticked 0.23 percent higher to NZ$8.77.

— Manila ended up 0.35 percent, or 23.99 points, at 6,850.60.

Ayala Corp. rose 1.47 percent to 9.50 pesos, Alliance Global added 0.51 percent to 29.35 pesos, and Bank of the Philippine Islands gained 1.85 percent to 93.50 pesos.

— Mumbai surged 1.27 percent, or 324.86 points, to 25,841.21 points.

Adani Ports gained 10.98 percent to 270.90 rupees, while Castrol India rose 8.94 percent to 361.20 rupees.

— Kuala Lumpur rose 0.41 percent, or 7.72 points, to 1,886.84.

SapuraKencana Petroleum added 1.4 percent to 4.40 ringgit, while utility Tenaga Nasional rose 1.5 percent to 12.38.

— Bangkok added 0.41 percent, or 6.06 points, to 1,491.81.

Bangkok Bank gained 3.37 percent to 199.50 baht, while convenience store operator CP All lost 3.12 percent to 46.50 baht.

— Jakarta ended up 0.48 percent, or 23.45 points, at 4,908.27.

Property firm Ciputra Development gained 3.21 percent to 965 rupiah, while miner Aneka Tambang slipped 0.91 percent to 1,090 rupiah.

— Singapore rose 0.66 percent, or 21.27 points, to 3,263.91.

Singapore Airlines rose 1.16 percent to Sg$10.49 while Oversea-Chinese Banking Corporation was up 0.32 percent to Sg$9.48.