Asian stocks up ahead of US jobs data

By
AFP
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Asian stocks up ahead of US jobs data
HONG KONG: Asian markets extended recent gains Monday as investors awaited the release of key US jobs data at the end of the week, while Shanghai surged after China approved three private banks as part of an economic reform drive.

The euro struggled to break out from multi-month lows against the dollar and yen following another weak set of data that raised concerns about the eurozone.

Tokyo rose 0.47 percent by the break, Hong Kong added 0.48 percent, Shanghai gained 0.81 percent and Seoul was 0.33 percent higher while Sydney was flat.

Jakarta, Singapore and Kuala Lumpur are closed for public holidays.

With few catalysts to push regional buying, dealers were looking ahead to Friday´s July non-farm payrolls figures out of Washington. With last month´s report coming in well above forecasts there are hopes for another strong set of figures as the US economy picks up strength.

Wall Street ended last week on a low owing to disappointing earnings results, including from Amazon. The Dow slipped 0.72 percent and the S&P 500 dropped 0.48 percent after two straight record closes, while the Nasdaq lost 0.50 percent.

However, Asia started in an upbeat mood Monday, with Shanghai leading the charge after officials approved the setting up of the private banks. Beijing in March said it would reform the banking sector, which is dominated by four state-owned banks, in a drive to boost efficiency and help develop the economy.

On currency markets the euro continued to struggle after a closely watched index of German confidence slipped for a third straight month in July, hitting its lowest level since October owing to concerns about the crises in Ukraine and the Middle East.

The Ifo economic institute´s index tumbled to 108.0 points from 109.7 points in June, much lower than the 109.4 points forecast by analysts polled by Dow Jones Newswires.

The euro was at 136.71 yen compared with 136.76 yen, its weakest since February, while it was also at an eight-month low of $1.3429 against $1.3430. The dollar bought 101.80 yen against 101.83 yen in New York Friday, While regional markets are higher, investors are still wary of geopolitical tensions, with analysts warning the eurozone economy could be hurt by any fresh sanctions on Russia for its support of anti-government rebels in Ukraine.

In oil trade the US benchmark West Texas Intermediate for September delivery fell 31 cents to $101.67 a barrel in afternoon trade, while Brent crude jumped $1.01 to $108.06.Gold fetched $1,302.85 an ounce by 0230 GMT compared with $1,292.42 late Friday. (AFP)