NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Asian shares buoyed by strong U.S. job data, China worry caps gains

Published 09/12/2019, 08:03
Updated 09/12/2019, 08:09
GLOBAL MARKETS-Asian shares buoyed by strong U.S. job data, China worry caps gains
EUR/USD
-
USD/JPY
-
US500
-
JP225
-
HK50
-
DE30
-
DX
-
LCO
-
UK100
-
CL
-
EU50
-
US10YT=X
-
SSEC
-
MIAPJ0000PUS
-

* U.S. jobs data shows unexpected strength, calms recession

fears

* China Nov exports fall; import growth may signal demand

recovery

* Some cautiousness prevails ahead of important tariff

deadline

* Oil near multi-month highs as OPEC+ agrees on deeper

output cuts

* European shares giving up some of Friday's gains

By Tomo Uetake

SYDNEY, Dec 9 (Reuters) - Asian stocks edged up on Monday,

catching some of Wall Street's momentum after surprisingly

strong U.S. jobs data, although regional gains were capped by

concerns about China's economic slowdown due to the prolonged

Sino-U.S. trade war.

Japan's benchmark Nikkei .N225 added 0.33% while MSCI's

broadest index of Asia-Pacific shares outside Japan

.MIAPJ0000PUS gained 0.27%. China's Shanghai Composite .SSEC

stood flat and so did Hong Kong's Hang Seng .HSI .

European shares are expected to give up some of the gains

made on Friday after the U.S. payrolls data, with pan-European

Euro Stoxx 50 futures STXEc1 down 0.14%, German DAX futures

FDXc1 slipping 0.04% and FTSE futures FFIc1 losing 0.35%.

Wall Street rose to near record highs on Friday on the

strong jobs data and some signs of optimism about the U.S.-China

trade talks, with the benchmark S&P 500 .SPX closing within

0.2% of its peak set in late November. .N/C

U.S. job growth increased by the most in 10 months in

November as the healthcare industry boosted hiring and

production workers at General Motors returned to work after a

strike, in the strongest sign that the world's largest economy

is in no danger of stalling. "This economy is still climbing and shattering the records

for longevity," said Chris Rupkey, chief financial economist at

MUFG Union Bank. "Right now, the clouds of recession still

remain well offshore despite troubled economies elsewhere in the

world and a trade war."

Beijing hopes that it can reach a trade agreement with the

United States that satisfies both sides as soon as possible,

China's Assistant Commerce Minister Ren Hongbin said on Monday.

Top White House economic adviser Larry Kudlow said on Friday

that a Dec. 15 deadline is still in place to impose a new round

of U.S. tariffs on Chinese consumer goods, but President Donald

Trump likes where trade talks with China are going. Still, investors think things could change if trade tensions

escalate further, especially if Trump goes ahead with the

planned tariffs on some $156 billion worth of products from

China in mid-December.

The market has been largely working on the assumption that

those tariffs, which cover several consumer products such as

cellphones and toys, will be dropped or at least postponed,

given that Washington and Beijing agreed in October to work on a

trade deal.

Meanwhile, China's exports shrank for the fourth consecutive

month in November, sending shivers through a market already

concerned about damage being done to global demand by the trade

But growth in imports was seen as a possible sign that

Beijing's stimulus efforts over the last two years were helping

to stir demand.

"Although the trade data did not have much impact, concerns

about slowing growth and a lack of government stimulus are

capping the Chinese shares' upside," said Naoki Tashiro,

president of TS China Research.

"Yet chip-related shares are doing well, suggesting

investors are still positive on the outlook of Sino-U.S. trade

talks overall."

U.S. Treasury yields climbed on the strong employment

report, with benchmark 10-year notes rising to 1.843%

US10YT=RR .

The Federal Reserve's Open Market Committee (FOMC) kicks off

its two-day policy meeting on Tuesday. The central bank is

expected to highlight the economy's resilience and keep interest

rates on hold in the range of 1.50% to 1.75%. Analysts said the much better-than-expected jobs report

offset mixed signals from recent economic data and validated the

Fed's wait-and-see stance on interest rates after three

"insurance cuts" this year.

Oil prices retreated but hovered near recent peaks after

OPEC and its allies agreed to deepen output cuts by 500,000

barrels per day in early 2020. U.S. West Texas Intermediate (WTI) crude CLc1 slipped 0.4%

to $58.94 per barrel, still not far from Friday's 2-1/2-month

high of $59.85 per barrel, while Brent futures LCOc1 were down

0.3% at $64.21 per barrel.

In the currency market, the dollar maintained a firm tone on

Monday, with the dollar index against a basket of major

currencies =USD standing at 97.648 and the euro changing hands

at $1.1061 EUR= , both little changed on the day.

Against the Japanese yen, the dollar was last traded at

108.59 yen JPY= , flat on the day.

Elsewhere, the British pound rose to as high as $1.3180

GBP=D4 , its highest in seven months. Versus the euro, the

currency hit a 2-1/2-year high of 84.07 pence per euro

EURGBP=D4 on Monday.

Sterling has been bolstered by expectations that Prime

Minister Boris Johnson's Conservative Party will win an outright

majority in the upcoming election on Thursday, thereby ending a

hung parliament and political paralysis on Brexit. FRX/

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.