Asian markets bounce on US jobs figures

Asian markets rebounded strongly on Monday on better-than-expected US jobs data while traders took a more positive view of the European Central Bank's position on the eurozone debt crisis.

The single currency hit its highest level against the dollar in a month as concerns over the eurozone and the US eased, while hopes grew that Greece will meet its obligations to qualify for another tranche of rescue cash.

Tokyo rose 2.0 percent, or 171.18 points, to 8,726.29, Seoul climbed 2.01 percent, or 37.20 points, to 1,885.88 and Sydney closed 1.21 percent, or 51.1 points, higher at 4,272.6.

Hong Kong jumped 1.69 percent, or 332.54 points, to 19,998.72 while Shanghai added 1.04 percent, or 22.12 points, to close at 2,154.92.

In the United States the Labor Department said on Friday that the economy added 163,000 jobs in July -- the strongest gain since February and beating forecasts for a gain of 100,000.

Despite a 0.1 percentage point rise in the unemployment rate to 8.3 percent the figures were welcomed by investors who took the report as a sign of resilience in the world's number one economy.

The result sent Wall Street surging. The Dow jumped 1.69 percent, the Nasdaq climbed 2.00 percent and the S&P 500 rose 1.90 percent.

The figures were welcome news for the markets, which had been sent tumbling on Thursday after the ECB failed to announce any concrete plans to support the euro, despite comment from its head Mario Draghi that it would do whatever was needed.

However, the initial disappointment was reversed in Europe and on Wall Street after bank officials said Friday it could intervene and buy the bonds of struggling eurozone countries without unanimous approval.

Those comments raised hopes that a bond buying programme to help struggling countries such as Spain and Italy is still possible.

The ECB "seems to be cooking up something internally", Jung Seung-jae, analyst at Mirae Asset Securities in South Korea, told Dow Jones Newswires.

"Action may come earlier than expected."

On currency markets the euro surged in early trade to a one-month high of $1.2442 as traders became more confident in higher-risk, higher-yielding assets.

The currency later eased back to $1.2360 in the afternoon, compared with $1.2381 in late trade in New York Friday.

The euro bought 96.89 yen compared with 97.30 yen in New York, although well up from the 95.18 yen in Tokyo on Friday.

The dollar bought 78.35 yen, from 78.59 yen.

Also providing some support to markets were comments from Greece's international creditors Sunday that the country was committed to hammering out further spending cuts to secure a new batch of aid.

The so-called troika of creditors -- the EU, IMF and ECB -- met about the reforms Greece needs to implement to secure 31.5 billion euros in aid and stay afloat.

"We made good progress," IMF official Poul Thomsen told reporters after the meeting.

That eased concerns that Athens was not doing enough to satisfy its creditors and could be refused the cash, which would in turn be likely to lead to a default.

Oil prices eased after posting impressive gains in Friday trade in the United States.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in September, fell 49 cents to $90.91 a barrel in the afternoon and Brent North Sea crude for September delivery shed 26 cents to $108.68.

Gold was at $1,604.60 at 0805 GMT, from $1,595.50 on Friday.

In other markets:

-- Taipei rose 0.95 percent, or 68.82 points, to 7,286.33.

Hon Hai Precision was up by its 7.0 percent daily limit at Tw$87.3 while Taiwan Semiconductor Manufacturing Co was 1.38 percent higher at Tw$80.9.

-- Manila ended flat, dipping 0.03 percent, or 1.75 points, to 5,284.16.

-- Wellington closed 0.43 percent higher, adding 15.21 points to 3,563.20.

Telecom Corp was up 1.12 percent to NZ$2.71, while Fletcher Building gained 1.62 percent to NZ$6.27.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • China says U.S. actions in S.China Sea "irresponsible, dangerous"
    China says U.S. actions in S.China Sea "irresponsible, dangerous"

    By Sui-Lee Wee BEIJING (Reuters) - China said on Friday it was "strongly dissatisfied" after a U.S. military plane flew over part of the South China Sea near where China is building artificial islands, and called on the United States to stop such action or risk causing an accident. The Chinese navy issued eight warnings to the U.S. P8-A Poseidon, the U.S. military's most advanced surveillance aircraft, when it conducted the overflights on Wednesday, according to CNN, which had a team on board …

  • 2015 Hyundai Lateral Drift goes to Philippine Arena
    2015 Hyundai Lateral Drift goes to Philippine Arena

    The smell of burnt rubber and screeching tires are some of the highlights that will be seen at the most adrenaline-pumped drifting event of the year—the 2015 Hyundai Lateral Drift Championship series.   Held at the Philippine Arena in Bocaue, Bulacan, the event will be the biggest venue in the drifting competition. This is the […] The post 2015 Hyundai Lateral Drift goes to Philippine Arena appeared first on Carmudi Philippines. …

  • The Richest Senators In The Philippines
    The Richest Senators In The Philippines

    The 2014 Statement of Assets, Liabilities, and Net Worth for politicians and public servants are now available for anyone to … The post The Richest Senators In The Philippines appeared first on iMoney.ph. …

  • PHILIPPINES PRESS-AirAsia Philippines seeks $500 mln valuation for IPO - Inquirer

    The Philippine unit of Malaysian budget carrier AirAsia Berhad is seeking a valuation of at least $500 million for its initial public offering set within the next two years, the Philippine Daily Inquirer ... …

  • Consultant, facing joblessness, claims P5.9-M lotto pot
    Consultant, facing joblessness, claims P5.9-M lotto pot

    A 39-year-old information technology consultant, whose job contract will expire this month, has claimed his share of the 6/45 Mega Lotto’s P17.8-million jackpot in its May 13 draw, the Philippine Charity Sweepstakes Office (PCSO) announced yesterday. “I could not sleep for the past several days, thinking about where I could get the money to pay my children’s tuition,” the winner told PCSO general manager Jose Ferdinand Rojas II when he received a check for P5.9 million at the PCSO’s central …

  • Cager’s daughter: I will never drive again
    Cager’s daughter: I will never drive again

    Kim Asaytono vowed never to get behind the wheel again after she hit 14 people on Tuesday night and killed one of them. Even if she gets out of jail one day, the 22-year-old daughter of former Philippine Basketball Association player Nelson Asaytono said she no longer wants to drive. Maybe, I will still ride a car but I will never drive again,” she told The STAR in an interview in her jail cell at the Manila Police District headquarters. …

  • Disaster center to rise in Clark
    Disaster center to rise in Clark

    The private sector is set to build a disaster operations center near Clark international airport in Pampanga to strengthen the country’s preparedness against natural calamities. In his closing remarks during a two-day Earthquake Resilience Conference, businessman Manuel V. Pangilinan said yesterday the Philippine Disaster Recovery Foundation (PDRF) would build the center that would serve as base for immediate response to a disaster. Pangilinan, co-chair of the PDRF, said the disaster …

  • China shoos away US plane in disputed sea
    China shoos away US plane in disputed sea

    The Chinese navy warned a US surveillance plane flying over artificial islands that Beijing is creating in the disputed South China Sea to leave the area eight times, according to CNN, which was on board the flight on Wednesday. The P8-A Poseidon, the US military’s most advanced surveillance aircraft, flew at 4,500 meters at its lowest point, CNN said. The incident, along with recent Chinese warnings to Philippine military aircraft to leave areas around the Spratly archipelago in the South …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options