Stocks in Asia Advance on US Jobs Data
February 06, 2012
Businessmen walk past a stock monitor board in Tokyo on Monday. Japanese shares were being buoyed by strong gains on Wall Street last week after a report showed robust employment figures. (AFP Photo) Related articles
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Bangkok. Asian stock markets climbed on Monday after US unemployment fell to its lowest in three years, suggesting a stronger recovery in the world’s No. 1 economy that could benefit the region’s exporters.
Japan’s Nikkei 225 stock average rose 1.1 percent to 8,929.20, its highest close in more than three months but Hong Kong’s Hang Seng lost 0.2 percent to 20,709.90. Benchmarks in Singapore and mainland China also rose.
On Friday, the Dow Jones industrial average was propelled to its highest close since May 2008 after the US Labor Department said the economy added 243,000 new jobs in January, the strongest job growth in nine months.
That helped to push the unemployment rate down to 8.3 percent and the number of unemployed down to 12.8 million.
Noting that a similar gain occurred in April 2010, only to be followed by a negative trend, analysts at DBS in Singapore said, “Stay optimistic but keep a few grains of salt close at hand.”
Falling unemployment in the United States is likely to be good news for Asia, as it suggests that stronger consumer demand for the region’s exports of clothing, cars, consumer electronics and other goods. Among Japanese shares, Panasonic soared 6.3 percent and Mazda Motor jumped 6.9 percent. Camera maker Nikon shot up 11 percent after revising upward its net pretax profit for the current business year, Kyodo News reported on Monday.
In Tokyo, the Nikkei hit 8,949.32 in the morning — its highest intraday level since Oct. 31 — before settling slightly lower. Hong Kong’s Hang Seng was also off its daily high, as investors began to cash in some of their investments as talks to prevent Greece from defaulting on its massive debt pile dragged on.
“We hit 21,000 and now there is profit-taking, because there is still potential bad news from Greece,” said Jackson Wong, vice president at Tanrich Securities in Hong Kong. “The Greek debt talks are still going on, and no one knows if significant bad news will come out of there.”
In Europe, markets were in a jittery mood as talks dragged on between Greek political leaders over a fresh austerity package that is required if the debt-ridden country is to get a crucial bailout package.
“Time is running out,” said Lee Hardman, an analyst at The Bank of Tokyo-Mitsubishi UFJ.
The FTSE 100 index of leading British shares was down 0.5 percent, while Germany’s DAX fell 0.7 percent. The CAC 40 in France was 1.3 percent lower.
Wall Street was also poised for a lower opening following its rally on Friday. The euro was trading 0.8 percent lower at $1.3041.
Crude oil for March delivery lost $1.17 to $96.67 a barrel in New York. Gold was 1.1 percent lower at $1,720.90 an ounce.
Associated Press
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