Yahoo Finance Asian Equities Rally as U.S. Payrolls Lift Markets
Investing.com – Asian equities traded higher in morning trade on Monday, following a solid lead in the U.S. last week after the February job data came in better than expected while inflation concerns faded.
U.S. data on Friday showed nonfarm payrolls surged by 313,000 jobs in February. Annual growth in average hourly earnings however slowed to 2.6%, tempering speculation the Federal Reserve would project four rate hikes this year instead of three.
The S&P 500 closed 1.7% higher, while the Dow and Nasdaq both added 1.8%.
Appetite for risk assets was also boosted near the end of last week as a controversial U.S. tariff plan turned out to be narrower than expected, easing speculation of a full blown global trade war.
Japan’s Nikkei gained 1.4% by 9:20pm ET, as investors continued to trim holdings in the yen on news that U.S. president Trump is preparing to meet with North Korean Leader Kim Jong-un.
Meanwhile, the Shanghai Composite and the Shenzhen Component traded 0.3% and 0.8% higher respectively.
China has approved the removal of term limits for its president with constitutional changes passed on Sunday. Although not a directional driver, a report compiled by the Bank for International Settlements (BIS) gathered some attention as it warned China and Hong Kong are among the economies most at risk of a banking crisis. Meanwhile, the Chinese government has ordered manufacturers in the city of Tianjin to cut emissions by at least 50%. The country’s industrial production, retail sales and fixed-asset investment are due Wednesday.
Hong Kong’s Hang Seng Index jumped 1.4%. Retailer Prada SpA (HK:1913) surged 19.4% after its CEO Patrizio Bertelli said in the company’s latest earnings report that he was satisfied with the progress made in 2017, although net profit for the year was down 4.3% YoY.
Down under, Australia’s S&P/ASX 200 edged 0.7% higher. Newcrest Mining Ltd (AX:NCM) made headlines after the company suspended mining at its flagship mine in New South Wales on the weekend. The company’s shares plummeted 4.5% in morning trade following the news. New Zealand’s GDP data would be out on Thursday.
Elsewhere, South Korea’s finance minister Kim Dong-yeon said Monday that the country would "deploy all possible means" to respond to U.S. President Trump's steel and aluminum tariff plans. The KOSPI gained 1.1% in morning trade.
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