Asian markets mostly higher on US jobs data
HONG KONG—Asian markets mostly rose Monday, tracking gains on Wall Street after strong US jobs data but worries about Greece’s unresolved debt crisis – and default fears – weighed on markets and the euro.
Tokyo was up 1.10 percent, or 97.27 points, at 8,929.20, Sydney added 1.05 percent, or 44.8 points, at 4,296, while Seoul gave up earlier gains to close flat, inching 0.79 points higher at 1,973.13.
Hong Kong edged down 0.23 percent, or 47.04 points, at 20,709.94 at the close, while Shanghai inched 0.03 percent higher, or 0.73 points, at 2,331.14.
Financial markets in Kuala Lumpur and Wellington were closed on Monday for a public holiday.
Investors cheered the latest batch of US economic data, which hinted that the world’s biggest economy was staging a lasting recovery as the Dow Jones Industrial Average climbed to pre-financial crisis levels on Friday.
The Labor Department figures showed that the US economy added 243,000 new jobs in January, while the unemployment rate fell to 8.3 percent from 8.5 percent in December – the lowest rate since February 2009.
The White House said the jobs report was another sign that the country’s economy was climbing back from the deep 2008-2009 recession.
The market also favored Facebook’s plan for a share sale that could top $5 billion.
The Dow gained 1.23 percent to finish at 12,860.23, its highest closing level since May 2008, while the tech-heavy Nasdaq Composite jumped 1.61 percent to 2,905.66, its best close since December 2000 and the dot-com collapse.
The broad-based S&P 500 rose 1.46 percent to 1,344.90.
Concerns about the US economy “have been overturned by the latest jobs data, eurozone fears are easing, and there’s abundant liquidity being pumped in by developed nations all over global stock markets,” said Samsung Securities analyst Park Seung-Jin in Seoul.
“If Greece finalizes talks with the private sector over its debt issue, there could be an even stronger rally.”
However, Athens has not yet finalized an agreement with private lenders to wipe out part of its 350-billion-euro ($460-billion) debt mountain, as the country faces heavy loan repayments next month, raising fears it may default.
Greek officials are also in talks with the European Union, the International Monetary Fund and the European Central Bank on further action needed to unlock a new eurozone rescue deal worth 130 billion euros.
The measures demanded by the trio include cuts to Greece’s monthly minimum wage, pensions and civil service jobs.
Leaders from Greek political parties are expected to resume talks Monday after failing to bridge differences on the reforms demanded by the EU, IMF and Europe’s central bank.
“The constant delays and negative comments from European leaders raise concerns that Greece will not meet the necessary conditions for more funds. That means disorderly default,” said National Australia Bank currency strategist Emma Lawson, according to Dow Jones Newswires.
On Monday, Indonesia said its gross domestic product grew by 6.5 percent last year, the latest in a string of positive economic news for Southeast Asia’s largest economy.
Europe’s main stock markets dropped at the start of trading on Monday with London’s FTSE 100 index off 0.33 percent, Frankfurt’s DAX 30 dipping 0.21 percent and the Paris CAC 40 losing 0.46 percent.
On forex markets, the euro bought $1.30 and 99.95 yen, down from $1.3156 and 100.80 yen in New York late Friday. The dollar changed hands at 76.60 yen, almost flat from New York.
New York’s main contract, West Texas Intermediate crude for delivery in March, was down 55 cents at $96.02 a barrel in the afternoon, while Brent North Sea crude for March delivery shed about four cents to $113.84.
Gold was at $1,717.97 an ounce at 1100 GMT, against $1,736.50 late Friday.
In other markets:
— Bangkok edged down 0.45 percent, or 4.94 points, to 1,094.01. PTT fell 0.58 percent to 341 baht, while Siam Cement added 0.85 percent to 355 baht.
— Indonesian shares lost 41.16 points, or 1.02 percent, to close at 3,974.79.
Palm-oil producer Astra Agro Lestari rose 2.1 percent to Rp 21,950, while coal producer Bumi Resources fell 2.9 percent to Rp 2,525.
— Mumbai’s Sensex rose 102.35 points, or 0.58 percent, to 17,707.31.
State Bank of India rose 2.94 percent to 2,165 rupees while property firm DLF rose 2.04 percent to 235.
— Taiwan shares fell 0.69 percent, or 53.26 points, at 7,687.98.
Hon Hai Precision was 1.57 percent lower at Tw$94.0 while smartphone maker HTC lost 5.16 percent at Tw$551.0.
— Singapore shares closed up 0.76 percent, or 22.15 points, at 2,940.10.
Jardine Cycle and Carriage was down 0.84 percent to Sg$50.81 while DBS Bank gained 0.22 percent to Sg$13.43.
— Philippine shares closed 1.2 percent higher, or 57.76 points, at 4,816.33.
SM Investments added 0.6 percent to 655 pesos, and BDO Unibank rose 0.8 percent to 61.65 pesos.
