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ASIA-MARKETS-UPDATE
Asian markets mixed after strong US jobs data, eyes on Brexit
HONG KONG, April 8, 2019 (BSS/AFP) – Asian markets were mixed Monday but
investors remain broadly upbeat after a strong US jobs report that eased
concerns about the world’s top economy, while the pound edged up at the start
of another crucial week in the Brexit saga.
The gains built on last week’s rally that was fuelled by optimistic tones
from China and the United States on trade talks, with top White House
economic adviser Larry Kudlow saying they had been “very productive” and
“moving the ball in the right direction”.
Confidence was given a boost by data from the Labor Department showing the
US created 196,000 net new jobs last month, beating expectations, with
moderate wage inflation easing pressure on the Federal Reserve to tighten
monetary policy.
The upbeat figures — and hopes for the trade talks — have combined with
a more dovish turn by central banks of late to support global markets, which
have enjoyed a stellar start to the year after a painful end to 2018.
“Valuations are OK, global growth is expected to improve into the second
half of the year, monetary and fiscal policy has become more supportive of
markets and the trade war is receding,” Shane Oliver, investment strategist
at AMP Capital Investors, told Bloomberg News.
This “should support decent gains for share markets through 2019 as a
whole”.
All three main indexes on Wall Street ended on a high Friday.
Hong Kong ended up 0.5 percent — closing above 30,000 points for the
first time since June — and Sydney ended 0.7 percent higher, with Seoul,
Taipei and Manila also rising.
But Tokyo finished 0.2 percent off, Shanghai eased 0.1 percent and
Singapore dipped 0.1 percent in late business. Mumbai and Jakarta were also
lower.
In early trade London and Frankfurt each dipped 0.2 percent, while Paris
eased 0.1 percent.
– Oil prices extend gains –
The release of minutes from the Fed’s March policy meeting will be pored
over when they are released later this week, with traders hoping for fresh
clues about its thinking.
MORE/AFP/HR/1444
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ASIA-MARKETS-UPDATE 2 LAST HONG KONG
The bank has come under fresh pressure from Trump to lower interest rates,
blaming it for acting as a drag on the economy.
On currency markets, the pound was slightly higher against the dollar as
British Prime Minister Theresa May looks to reach a deal with the opposition
Labour Party to avert a hard Brexit, with a second deadline approaching on
Friday.
May last week asked European Union leaders for another delay until June
30, while the bloc itself suggested that it might be best to postpone the
split for up to a year. Brussels is due to make a decision within days.
Oil prices extended last week’s gains as an escalation of unrest in crude-
rich Libya raised the prospect of a further tightening of supplies.
Both main contracts are enjoying a rally thanks to output cuts by OPEC and
other producers led by Russia, as well as sanctions on Iran and Venezuela.
“The uptrend for crude oil had been underpinned to a large extent by
supply factors of late and the weekend update of Libya unrest further adds to
this phenomenon,” said IG market strategist Jingyi Pan.
– Key figures around 0810 GMT –
Tokyo – Nikkei 225: DOWN 0.2 percent at 21,761.65 (close)
Hong Kong – Hang Seng: UP 0.5 percent at 30,077.15 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,244.81 (close)
London – FTSE 100: DOWN 0.2 percent at 7,435.78
Pound/dollar: UP at $1.3059 from $1.3035 at 2040 GMT on Friday
Euro/pound: DOWN at 85.94 pence from 86.05 pence
Euro/dollar: UP at $1.1223 from $1.1216
Dollar/yen: DOWN at 111.45 yen from 111.70 yen
Oil – West Texas Intermediate: UP 29 cents at $63.37 per barrel
Oil – Brent Crude: UP 32 cents at 70.66 per barrel
New York – Dow: UP 0.2 percent at 26,424.99 (close)
BSS/AFP/HR/1445