Asian markets rise on IMF crisis-fighting plan

HONG KONG—Asian markets mostly rose Thursday, tracking gains on Wall Street amid positive US economic data and International Monetary Fund plans to boost its coffers for crisis fighting.

But the Australian dollar took a hit after a mixed jobs report disappointed markets.

Tokyo rose 1.04 percent, or 89.10 points, to 8,639.68 and Seoul jumped 1.19 percent, or 22.58 points, to 1,914.97.

Hong Kong’s benchmark Hang Seng index closed 1.30 percent higher, adding 256.03 points to 19,942.95 while Shanghai was 1.31 percent, or 29.70 points, stronger at 2,296.08.

But Sydney nudged 3.1 points lower to 4,214.8.

On Wednesday, the IMF said that it planned to add $500 billion more to pad its war chest, a move understood to be aimed at stalling fallout from the eurozone crisis and preventing a global recession.

“The IMF news was certainly taken positively by the market because it’s a step in the right direction, but it’s going to be a long road,” said Justin Gallagher, RBS head of sales trading and execution in Sydney.

“Greece seems close to resolving the issue of the ‘haircuts’ that will be imposed on bond holders, but they haven’t done it yet,” he added.

Continuing talks between Athens and its creditors kept hopes alive for a deal that would pave the way for a separate agreement on IMF and EU funding, and help calm market fears of a wider crisis within the 17-nation eurozone.

Rosy US economic data buoyed Wall Street on Wednesday with the Dow Jones Industrial Average adding 0.78 percent, the S&P 500 rising 1.11 percent, while the tech-rich Nasdaq Composite soared 1.53 percent.

The National Association of Home Builders reported a surge in confidence in the industry on business prospects for the coming year, while separate data showed US inflation dipped and manufacturing activity rose last month.

Bank shares soared after Goldman Sachs reported a better-than-expected 58 percent drop in fourth-quarter earnings.

On currency markets, the Australian dollar weakened to 103.88 US cents from 104.30 cents after official data showed the number of people employed fell by 29,300 to 11.4 million last month.

However, the overall unemployment rate remained steady at 5.2 percent, suggesting the market’s initial reaction to the figures were overdone, said JPMorgan economist Benjamin Jarman.

“The guts of it is that unemployment stayed steady,” he told Dow Jones Newswires.

In currency markets, the euro bought $1.2886 and 98.87 yen in early European trade, from $1.2862 and 98.78 yen in New York late Wednesday.

The dollar traded at 76.72 yen, also hardly changed from New York.

New York’s oil main contract, West Texas Intermediate crude for delivery in February, gained $1.08 to $101.67 a barrel.

Brent North Sea crude for March delivery was up 68 cents to $111.34.

Gold was at $1,663.60 an ounce at 1030 GMT, against $1,655.60 late Wednesday.

In other markets:

— Singapore closed up 0.57 percent, or 15.80 points, at 2,811.20.

Oil-rig maker Keppel Corp. shed 1.05 percent to Sg$10.40 and Singapore Airlines gained 1.42 percent to Sg$10.73.

— Manila rose 0.49 percent, climbing 22.75 points to 4,700.37.

Philippine Long Distance Telephone was up 0.8 percent at 2,850 pesos and Petron Corp. added 1.6 percent to 11.50 pesos while SM Investments gained 1.3 percent to 624 pesos.

— Wellington added 0.53 percent, or 17.24 points, to end at 3,264.74.

Contact Energy gained 1.04 percent to NZ$4.87, Fletcher Building jumped 2.80 percent to NZ$6.25 and Telecom fell 0.73 percent to NZ$2.05.

— Kuala Lumpur closed flat, edging down to 1,516.81.

Telecom company Axiata Group fell 0.62 percent to 4.84 ringgit, while Malayan Banking shed 0.97 percent to 8.20 ringgit. Mobile service provider DiGi.com gained 0.26 percent to 3.88 ringgit.

— Jakarta was 0.58 percent, or 22.95 points, higher at 4,001.07.

Among gainers, Indonesia’s largest lender Bank Mandiri rose 2.2 percent to 7,100 rupiah, while auto maker Astra International gained 1.3 percent to 78,800 rupiah.

— Bangkok rose 0.69 percent or 7.30 points to 1,058.94.

— Mumbai added 1.17 percent, or 192.27 points, to end at 16,643.74.

— Taipei was closed for a public holiday.