Most Asian markets up after Wall St gains, eyes on US jobs

HONG KONG, China (AFP) — Stocks mostly rose in Asia Friday following a strong lead from New York, while optimism about a US jobs report later in the day pushed the dollar up against the yen and euro.

The upbeat outlook was also evident in oil markets, where prices held around the $50 mark as OPEC’s refusal to cap output was offset by a fall in US stockpiles.

With the start of June proving to be hard going, the focus is on Friday’s non-farm payrolls report from the Labor Department, which helps the Federal Reserve decide when to lift interest rates.

Expectations are high for a June or July hike after bank chair Janet Yellen last Friday said such a move could be justified “in the coming months”, citing continued US economic growth and a strengthening labour market.

US investors provided a perfect platform for their Asian counterparts with the S&P 500 ending at a seven-month high, with help from a rally in oil prices.

Tokyo was up 0.2 percent by the break, while Hong Kong added 0.7 percent, Sydney gained 0.6 percent and Singapore also put on 0.7 percent. However Shanghai dipped 0.2 percent.

“Investors are taking heart that US stocks are at such high levels, and that should lead to a rebound,” Mitsuo Shimizu, an equity strategist at Japan Asia Securities Group in Tokyo, told Bloomberg News.

“This OPEC meeting was unlike the previous ones and the selloff in oil prices has ended, that’s also giving us reason to be optimistic.”

The Organization of the Petroleum Exporting Countries’ failed to agree a deal to limit output at its latest twice-yearly meeting in Vienna, in line with expectations.

However, while crude prices initially fell on the news, they rebounded after official figures showed US reserves fell last week, fuelling hopes demand in the world’s top economy is picking up.

In morning trade Brent was up 0.2 percent at $50.12 and West Texas Intermediate gained 0.1 percent to $49.21.

With US borrowing costs tipped to rise this summer, the dollar has managed to hold up and on Friday it bought 109.01 yen compared with 108.88 yen in New York, while the euro dipped to $1.1148 from $1.1154.

– Key figures at 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 16,589.97 (break)

Shanghai – Composite: DOWN 0.2 percent at 2,920.17

Hong Kong – Hang Seng: UP 0.7 percent at 21,001.77

Euro/dollar: DOWN at $1.1148 from $1.1154 on Thursday

Dollar/yen: UP at 109.01 yen from 108.88 yen

New York – Dow: UP 0.3 percent at 17,838.56 (close)

London – FTSE 100: DOWN 0.1 percent at 6,185.61 (close)

dan/mtp

© 1994-2016 Agence France-Presse

Related Post

This website uses cookies.