Forex News 24
  • RSS

news

Asia shares rally as U.S. job data revive risk appetite

Asia shares rally as U.S. job data revive risk appetite
админ
12/03/2018

Asia shares rally as U.S. job data revive risk appetite 300x228 - Asia shares rally as U.S. job data revive risk appetite

A relief rally swept across Asian share markets on Monday after the latest U.S. jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.3 percent, poised for a third session of gains.

South Korea rose 1 percent while Australia’s main index added 0.7 percent, boosted by mining shares on news that Australia could be exempt from new U.S. trade tariffs on steel and aluminum imports.

E-Mini futures for the S&P 500 put on another 0.3 percent.

Japan’s Nikkei jumped 1.2 percent, showing little immediate reaction as Prime Minister Shinzo Abe came under renewed fire over suspicions of cronyism involving the sale of state-owned land.

Inflation worries faded on Friday after U.S. data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6 percent after a spike in January.

The pullback in wages tempered speculation the Federal Reserve would project four rate hikes – or dot plots – at its policy meeting next week, instead of the current three.

“The release threaded the stock needle perfectly, exhibiting strong overall net job adds alongside an increase in the participation rate and tepid wages suggesting labor demand is being met by new entrants into the workforce,” said analysts at JPMorgan in a note.

“In reality though the market is probably reading too much into a single jobs report,” they cautioned.

“A fourth dot on March 21 may have been averted but the labor market is increasingly demonstrating evidence of tightness and this will inevitably translate into upside wage pressure.”

For now, Wall Street was happy to take the data at face value and the Dow jumped 1.77 percent, while the S&P 500 gained 1.74 percent and the Nasdaq 1.79 percent.

On the week, the S&P rose 3.5 percent, the Dow 3.25 percent and Nasdaq 4.2 percent.

The jobs news likewise lifted riskier currencies, including the Mexican peso and Canadian and Australian dollars, while weighing on the safe-haven yen.

Those cross currents left the U.S. dollar a shade lower against a basket of currencies at 89.973 . The euro was last up a fraction at $1.2323 .

The dollar edged down on the yen to 106.38 , having bounced 0.5 percent on Friday.

Investors had trimmed holdings of yen last week on news U.S. President Donald Trump was prepared to meet with North Korea’s Kim Jong Un, a potential breakthrough in nuclear tensions in the region.

U.S. officials on Sunday defended Trump’s decision, saying the move was not just for show and not a gift to Pyongyang.

“Now the US is back to goldilocks at least for now, the tariffs are less severe, and Kim and Trump are to meet,” said Shane Oliver, Sydney-based chief economist at AMP.

“We still expect more volatility this year as many of these issues have further go run, but the broad trend in shares likely remains up.”

The mix of brisk U.S. economic growth and restrained inflation was a positive one for most commodities.

Spot gold was steady on Monday at $1,323.61 an ounce.

Brent crude futures rose 7 cents to $65.56 a barrel, after surging almost 3 percent on Friday. U.S. crude futures rose 6 cents to $62.10 a barrel.

Source

Related ItemsAsiaAustraliaeconomiceuroFederal ReservefuturesgoldinflationInvestorsJapanJapan’s NikkeiJPMorganlabor marketmarketmarketsminingparticipation raterateregionriskrisk appetiteShinzo AbeSouth KoreatradeTrumpU.S. dollarUSvolatilityWall Street

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

Anti-spam: complete the taskWordPress CAPTCHA


news
12/03/2018
админ
Related ItemsAsiaAustraliaeconomiceuroFederal ReservefuturesgoldinflationInvestorsJapanJapan’s NikkeiJPMorganlabor marketmarketmarketsminingparticipation raterateregionriskrisk appetiteShinzo AbeSouth KoreatradeTrumpU.S. dollarUSvolatilityWall Street

More in news

273116ff712463a8fe797bc26d4bddd2 400x240 - Major policy change for the FED

Major policy change for the FED

админ30/08/2020
Read More
5ecd652efa96beb5e9daab8a81713e20 400x240 - Powell expected to preview Fed’s policy framework

Powell expected to preview Fed’s policy framework

админ27/08/2020
Read More
1cfd53e4dc84605be8f34b32e1fc08ff 400x208 - European markets look defensive

European markets look defensive

админ26/08/2020
Read More
Scroll for more
Tap

Last news

  • 273116ff712463a8fe797bc26d4bddd2 95x60 - Major policy change for the FED
    Major policy change for the FED
    news30/08/2020
  • 5ecd652efa96beb5e9daab8a81713e20 95x60 - Powell expected to preview Fed’s policy framework
    Powell expected to preview Fed’s policy framework
    news27/08/2020
  • 1cfd53e4dc84605be8f34b32e1fc08ff 95x60 - European markets look defensive
    European markets look defensive
    news26/08/2020
  • cbda506728f805be55e3597fd478b623 95x60 - Another record-setting session for U.S. stocks futures
    Another record-setting session for U.S. stocks futures
    news25/08/2020
  • 3c51d052540d35f9b8497fc0b1942d58 95x60 - $50M worth of cryptos or more left China
    $50M worth of cryptos or more left China
    news23/08/2020

Tags

american Asia Bitcoin China cryptocurrency currency Dollar dollar index economic Economists EUR euro Fed Federal Reserve forex futures GBP GDP Germany Index inflation interest rate interest rates Japan losses lost market markets monetary policy Oil price prices rate rates retail rise risk sales trade trade war trading Trump UK United States US

Copyright © 2019 Forex News 24, all rights reserved.

Trump and Brexit to Drive the USD and GBP
Goldilocks is back at the table