Japanese stocks jumped Monday, as Friday’s surprisingly strong U.S. jobs data boosted the dollar against the yen, while Hong Kong was boosted by positive economic data from China.
In Tokyo, the Nikkei 225 index regained 183.04 points, or 1.3%, to end the week’s first session at 14,269.84
Hong Kong’s Hang Seng Index soared 325.46 points, or 1.4%, to 23.069.85
The U.S. economy created 204,000 jobs in October, much higher than the forecast of 120,000 new jobs. The fresh sign of strength in the world’s largest economy pushed Wall Street sharply higher on Friday.
In Asia, the moves higher were generally more moderate, as the strong labour report strengthened concerns in some markets that the U.S. Federal Reserve could start to roll back its stimulus measures sooner than expected.
Recent data from the U.S. had led many to forecast that the Fed could hold back until next year before starting to taper its bond-buying program. But the latest labour report raised expectations for a more imminent move.
Signs of strength in the U.S. economy pushed the dollar 1% higher against the yen Friday, though the greenback pulled back slightly during early Asian trade after Japan posted a larger-than-expected current account surplus for September. The dollar was last at ¥98.96 compared with ¥99.06 late Friday in New York.
The U.S. dollar moved higher against several Asian currencies, such as South Korea’s won, recently trading at 1,071.4 won compared with 1,064.9 won late Friday in Seoul.
Japanese exporters benefited from the weaker yen, with Tokyo Electron up 2.5% and Advantest Corp. rising 2.7%.
Shares in Olympus Corp., however, fell 2.3% after the camera maker posted a second-quarter operating profit that fell short of several forecasts.
CHINA
There were some positive economic data from China over the weekend, providing further evidence of a steady recovery from a slowdown earlier in the year
Shanghai’s CSI 300 index gained 7.94 points, or 0.3%, to 2,315.89
Industrial production grew by 10.3% on-year in October. Consumer inflation rose to 3.2% on-year, the highest reading since February.
Also in China, a major political meeting was underway in Beijing. The so-called Third Plenum will finish on Tuesday, and is expected to result in a blueprint for the new government’s policies over the next decade.
In other markets;
Korea’s Kospi Index slid 7.57 points, or 0.4%, to 1,977.30
Taiwan’s Taiex Index shed 47.03 points, or 0.6%, to 8,182.56
The Singapore Straits Times Index inched higher 9.47 points, or 0.3%, to 3,186.72
In New Zealand, the NZX 50 fell back 29.19 points, or 0.6%, to 4,922.17
In Australia, the S&P/ASX 200 skidded 13.52 points, or 0.3%, to 5,387.14
