Asia stocks rise on upbeat US jobs data, dollar firm
Asian stocks rose on Monday as the US job market showed further signs of recovery, highlighting a brighter outlook for its economy, while the dollar held firm against a basket of other major currencies.
February 07, 2011 / 10:13 IST
Asian stocks rose on Monday as the US job market showed further signs of recovery, highlighting a brighter outlook for its economy, while the dollar held firm against a basket of other major currencies.
The MSCI index of Asian stocks outside Japan rose nearly half a percent as investors returned to pick up bargains after stocks dropped to a one-month low last Monday.Japan's Nikkei average rose 0.7% to a nine-month peak, while Korea's stock index was more than 1 percent higher in early deals.Japan has benefited from a shift into developed markets this year, while South Korea is seeing stronger inflows as investors rotate out of last year's hot performing emerging markets in Southeast Asia.Most Asian markets which were closed for the Lunar New Year holiday late last week reopened on Monday with the exception of China, where trading will not resume until Wednesday.Boosted by the data on Friday which showed a sharp drop in the US jobless rate, the dollar was firm against a basket of currencies with markets growing wary of a reversal in its recent bearish trend after it bounced off multi-month lows against the euro last week.Despite concerns that job growth was far less than expected, markets viewed the data positively. The dollar index, which tracks the greenback against a basket of major currencies, was up 0.06% at 78.088, but well off a three-month low of 76.881 tested last Wednesday.Reports of eurozone infighting over a French and German push for a comprehensive package of reforms to address the region's debt crisis also kept a lid on the euro.Japanese government bond yields rose, reflecting a jump in treasury yields on Friday, with the 10-year yield hitting a nine-month peak above 1.295 percent.US crude futures recovered slightly to around USD 89 a barrel after falling nearly 2% on Friday though the focus remained firmly on Egypt's political crisis. Brent crude stayed above the USD 100 level.The Egyptian government opened talks with opposition groups at the weekend to resolve the country's deepest crisis in 30 years, but it was far from certain the situation had been diffused. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
