Asian Shares Rise After Solid US Jobs Data

Most Asian stocks rose on Monday after better-than-expected U.S. jobs data generated optimism about growth in the world’s largest economy, but spurred expectations that it could lead to a third rate rise this year in December by the Federal Reserve.

U.S. non-farm payroll employment surged up by 209,000 jobs in July after spiking by an upwardly revised 231,000 jobs in June. The jobless rate edged down to 4.3 percent from 4.4 percent in June.

Investors also awaited Pyongyang’s response after the U.N. Security Council unanimously approved tough new sanctions Saturday to punish North Korea for its escalating nuclear and missile programs.

The Japanese yen weakened against the dollar and oil retained most of Friday’s gains while gold remained under selling pressure to hover near two-week lows.

China’s Shanghai Composite index reversed early losses to close half a percent higher at 3,279.46 ahead of forex reserves, trade and inflation data due this week. Hong Kong’s Hang Seng index was up 127 points or 0.46 percent at 27,694 in late trade.

Japanese shares rose as the yen weakened on better-than-expected U.S. jobs data and Toyota raised its earnings outlook. The Nikkei average closed 103.56 points or 0.52 percent higher at 20,055.89 while the broader Topix index rose 0.48 percent to 1,639.27, the highest level since August 2015.

Toyota Motor climbed 2 percent after the automaker raised its full-year guidance, citing favorable exchange rates. Suzuki Motor rose 1.1 percent and Mazda Motor advanced 1.4 percent. Toshiba Corp shares jumped 5.9 percent on reports that its auditor will sign off on its financial results for the year ended March, helping lessen the risk of a delisting.

Australian shares rose sharply to snap a three-session losing streak as higher commodity prices lifted resource stocks and separate surveys on job advertisements and construction activity painted a positive picture of the economy.

The benchmark S&P/ASX 200 climbed 53 points or 0.93 percent to 5,773.60 while the broader All Ordinaries index finished up 51.20 points or 0.89 percent at 5,824.50.

Miners BHP Billiton, Rio Tinto and Fortescue Metals Group rallied 2-3 percent while energy majors Woodside Petroleum, Origin Energy, Beach Energy, Oil Search and Santos rose 1-4 percent.

Financials also recovered from last week’s losses, with the big four banks rising between 0.8 percent and 1.3 percent. Casino operator Crown Resorts tumbled 4.3 percent to extend Friday’s losses on a brokerage…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *