Asia shares higher after Wall St advance

All eyes will now be on Washington on Tuesday, when the new Fed chief Janet Yellen makes her first appearance in the post before Congress.

Asia's markets rose, taking their lead from a strong rally on Wall Street as investors brushed aside below-forecast US jobs data, and analysts suggested the recent downturn may have ended.

The US dollar edged higher against the yen in early trade, adding to its gains in New York on Friday thanks to an uptick in optimism.

Tokyo rose 1.77 per cent, or 255.93 points to 14,718.34, Seoul was flat, inching up 0.80 points to 1,923.30 and Sydney was 1.08 per cent, or 55.6 points, firmer at 5,222.1.

Shanghai rallied 2.03 per cent, or 41.57 points, to 2,086.07 but Hong Kong eased 0.27 per cent, or 57.59 points, to 21,579.26.

The US Labor Department said Friday the economy added 113,000 jobs in January, far below the 175,000 forecast.

However, the report did include some positive news such as a rise in labour force participation.

Analysts said unusually severe winter weather over the past few weeks may have been a factor in the soft data.

US investors were undeterred by the numbers, with the Dow jumping 1.06 per cent on Friday, the S&P 500 up 1.33 per cent and the Nasdaq 1.69 per cent higher.

There had been fears that a disappointing set of numbers could send global markets slumping again after suffering huge sell-offs at the start of the month following weak US and Chinese manufacturing reports and the Federal Reserve's decision to further cut its stimulus.

However, Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management, said: "Wall Street's reception of the jobs numbers showed that the recent market correction may very well be over."

On currency markets the dollar bought 102.20 yen compared with 102.30 yen in New York, where it had firmed from 102.05 earlier Friday in Asia.

The euro bought $US1.3637 and 139.30 yen compared with $US1.3637 and 139.52 yen. The single currency is well up from the $US1.3583 and 138.65 in Tokyo at the end of last week.

Eyes will now be on Washington on Tuesday, when the new Fed chief Janet Yellen makes her first appearance in the post before Congress.

Investors will be looking for clues about the central bank's plans for its stimulus program, which has been credited with buoying global equity markets.

Oil prices slipped. New York's main contract, West Texas Intermediate for March delivery, eased 10 cents to $US99.78 and Brent North Sea crude for March was down 35 cents at $US109.22.

Gold fetched $US1,272.60 an ounce at 1045 GMT (2145 AEDT) compared with $US1,260.90 late on Friday.

In other markets:

-- Mumbai fell 0.21 per cent, or 42.29 points, to end at 20,334.27 points.

Mobile service provider Idea Cellular fell 8.43 per cent to 126.50 rupees a share while competitor Reliance Communications fell 3.95 per cent to 120.35 rupees.

-- Kuala Lumpur rose 7.55 points, or 0.42 per cent, to close at 1,816.14.

Malayan Banking inched up 0.2 per cent to 9.82 ringgit, while plantation giant Sime Darby gained 0.1 per cent to 9.02. Conglomerate YTL lost 0.6 per cent to 1.57 ringgit.

Bangkok lost 0.45 per cent, or 5.83 points, to 1,290.66.

-- Coal producer Banpu fell 1.83 per cent to 26.75 baht, while Airports of Thailand dropped 1.44 per cent to 171.50 baht.

Singapore rose 0.13 per cent, or 4.06 points, to close at 3,017.20.

-- Oil rig maker Keppel Corp eased 0.39 per cent to Sg$10.33 while DBS bank gained 0.18 per cent to Sg$16.38.

-- Jakarta closed down 0.36 per cent, or 15.92 points, at 4,450.75.

Mobile phone provider Indosat fell 0.25 per cent to 4,030 rupiah, while Indah Kiat Pulp & Paper lost 0.38 per cent to 1,315 rupiah.

-- Taipei was flat, edging up 4.60 points to 8,391.95.

Leading smartphone maker HTC eased 3.79 per cent to Tw$127.0 while Taiwan Semiconductor Manufacturing Co was 0.96 per cent lower at Tw$103.0.

-- Wellington fell 0.16 per cent, or 7.73 points, to 4,833.06.

Energy provider Vector ended down 4.0 per cent at NZ$2.38 and SkyCity fell 1.6 per cent to NZ$3.66. Fletcher Building was off 0.22 per cent at NZ$8.98.

-- Manila closed 0.52 per cent higher, adding 31.11 points to 6,042.25.

Universal Robina rose 1.02 per cent to 119 pesos while Ayala Corp. added 1.43 per cent to 533 pesos.


4 min read

Published

Updated

Source: AAP


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