Asian shares rise after buying mood on Wall Street ends week

TOKYO – Asian shares were mostly higher Monday cheered by a buying mood on Wall Street that came at the end of last week.

Japan’s benchmark Nikkei 225 edged up 0.3% in early trading to 23,414.51, while Australia’s S&P/ASX 200 added 0.2% to 6,722.90. South Korea’s Kospi edged up 0.3% to 2,088.76. Hong Kong’s Hang Seng lost earlier gains to inch down 0.2% to 26,451.16. The Shanghai Composite index fell 0.2% to 2,906.42.

“Markets were mostly higher on the solid U.S. jobs data print,” said Vishnu Varathan of the Asia & Oceania Treasury Department at Mizuho Bank in Singapore, adding that questions remained on whether would prove enough amid other global risks.

The surprisingly strong U.S. jobs report had put investors in a buying mood on Wall Street, extending the market’s winning streak to a third day.

The rally pushed the Dow Jones Industrial Average up by more than 300 points and erased the S&P 500’s losses from earlier in the week, nudging the benchmark index to a second consecutive weekly gain.

The Labor Department said employers added 266,000 positions, well above estimates of 184,000. The report also showed unemployment falling to a 50-year low. Separately, an index that measures how consumers feel about the economy showed an increase from last month.

The S&P 500 rose 28.48 points, or 0.9%, to 3,145.91. The index posted a 0.2% gain for the week, a solid pivot from losses of more than 1% as of late Thursday. It’s now within 0.3% of its all-time high set on Nov. 27 and up 25.5% so far this year.


The latest gains also helped stem some of the losses for the Dow and Nasdaq.

The Dow climbed 337.27 points, or 1.2%, to 28,015.06. The Nasdaq gained 85.83 points, or 1%, to 8,656.53. The Russell 2000 index of smaller company stocks picked up 19 points, or 1.2%, to 1,633.84.

Friday’s batch of encouraging economic data capped what started as a rough week for the market.

Increased trade tensions and disappointing economic reports — including data showing manufacturing continues to shrink, and growth in the service sector is slowing — dragged the market to steep losses on Monday and Tuesday.

The latest employment report and consumer sentiment data are a welcome development as steady job growth has been one of the bright spots in the economy, along with solid consumer spending.

Investors also got some encouraging news on the U.S.-China trade front, with Beijing saying Friday that it is waiving punitive tariffs on U.S. soybeans and pork as negotiations for a trade deal continue.

ENERGY:

Benchmark crude oil

It rose 77 cents to $59.20 a barrel on Friday.

Brent crude oil, the international standard, gained $1 to close at $64.39 a barrel.

CURRENCIES:

The dollar fell to 108.59 Japanese yen from 108.69 yen on Friday. The euro weakened to $1.1055 from $1.1107.

source: business.inquirer.net

Asian stocks follow Wall Street lower on trade war fears

BEIJING – Asian stock markets on Thursday followed Wall Street lower after President Donald Trump reignited trade fears by saying he could impose more tariffs on Chinese imports.

Benchmarks in Shanghai, Tokyo, Hong Kong and Sydney all declined. Oil rebounded from the previous day’s losses.

Trump alarmed investors by saying he had $325 billion of Chinese imports available for additional tariffs “if we want.” That shook markets that had been reassured by Trump’s agreement with Chinese President Xi Jinping in June to hold off on new trade penalties while they resume negotiations.

The Chinese government warned tariff hikes would “create a new obstacle” in talks on ending their bruising fight over Beijing’s technology ambitions.

Trump’s comment “cast a dark cloud over lingering concerns on trade talk progress,” said Mizuho bank analysts in a report.

The Shanghai Composite Index lost 0.6% to 2,913.49 and Tokyo’s Nikkei 225 tumbled 1.6% to 21,128.12. Hong Kong’s Hang Seng retreated 0.4% to 28,465.17 and Seoul’s Kospi was 0.2% lower at 2,066.94.


Sydney’s S&P-ASX 200 shed 0.3% to 6,655.60 and Taiwan and Southeast Asian markets also retreated. New Zealand gained.

On Wall Street, stocks extended their losses into a second day as railroad operator CSX had its biggest drop in 11 years, pulling other industrial companies down with it. CSX plunged 10.3% after saying it expects this year’s revenue to decline as much as 2%, after previously saying it expected growth.

Banks fell as investors worried lower interest rates will hurt profits. Investors expect the Federal Reserve to cut interest rates for the first time in a decade at their next policy meeting in two weeks.

Corporate earnings reports are getting into full swing this week, and investors have been mostly cautious in their assessments of them. Earnings are still expected to decline for S&P 500 companies in the second quarter.

ENERGY: Benchmark U.S. crude gained 1 cent to $56.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 84 cents on Wednesday to close at $56.78. Brent crude, used to price international oils, advanced 17 cents to $63.83 in London. It lost 69 cents the previous session to $63.66.

CURRENCY: The dollar declined to 107.73 yen from Wednesday’s 107.97 yen. The euro gained to $1.1239 from $1.1226./gsg

source: business.inquirer.net