Shares in Asia trend higher after tentative deal on Iran nuclear program
Investing.com - Shares in Tokyo and Shanghai edged higher on Friday in holiday-thinned trade globally with investors focused on a tentative deal on Iran's nuclear program and U.S. jobs data.
The Nikkei 225 gained 0.42% at the break, while the Shanghai Composite rose 0.52%.
Trade was thin on holidays in many markets, including the U.S., but non-farm payroll data will be released.
U.S. stocks were higher after the close on Thursday, as gains in the Telecoms, Consumer Services and Consumer Goods sectors led shares higher.
At the close in New York, the Dow Jones Industrial Average rose 0.37%, while the S&P 500 index gained 0.35%, and the NASDAQ Composite index gained 0.14%.
On late Thursday, details emerged that Iran and Western powers had reached a deal on the framework of a preliminary Iranian nuclear pact before a final agreement could be reached in late-June.
"This framework would cut off the pathway Iran could take to develop a nuclear weapon," U.S. president Barack Obama said at a news conference outside the White House. "This deal is not based on trust, it is based on unprecedented verification."
It is believed that the severe economic and financial sanctions against the Persian Gulf nation will be lifted on a staggered, step-by-step basis depending on how cooperative it is with inspectors from the International Atomic Energy Agency. Sanctions that have limited the Iranian Banking System will be among the limitations that could be initially removed, NBC News reported.
"The European Union will terminate the implementation of all economic and financial sanction and the U.S. will cease the application of all economic and financial sanctions," EU Vice President Federica Mogherini said at a joint news conference with Iran.
Investors also focused on Friday's U.S. employment report, which was forecast to show a gain of 245,000 jobs in March, following an increase of 295,000 in February.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits declined by 20,000 last week to 268,000 from the previous week's total of 288,000. Analysts had expected initial jobless claims to fall by 3,000 to 285,000 last week.
A separate report showed that the U.S. trade deficit widened narrowed 16.9% in February to $34.44 billion, the lowest level since 2009.
On Wednesday, payroll processing firm ADP said non-farm private employment rose by 189,000 last month, below expectations for an increase of 225,000 and the lowest since January 2014.
The disappointing data fuelled concerns over the health of the U.S. economy and dampened expectations for higher interest rates.