Asian stocks jumped higher on Monday after strong economic data from the world’s two largest economies helped sentiment, while a profit warning from QBE Insurance Group in Sydney weighed on Australian stocks.
In Tokyo, the Nikkei 225 index shot higher by 350.35 points, or 2.3%, to 15,650.21
Hong Kong’s Hang Seng Index took on 68.07 points, or 0.3%, to 23,811.17
The U.S. economy added 203,000 jobs in November, it was announced late on Friday, while unemployment fell to 7%, a five-year low.
Both figures beat expectations and were interpreted positively by Wall Street as a sign of strength in the world’s largest economy.
The pieces of data helped market sentiment, which could be seen in a weaker yen. The dollar pushed 0.5% higher to ¥102.89 against its Japanese counterpart on Friday and rose slightly on Monday — it was last at ¥103.13.
The U.S. dollar trading above the ¥103 mark gave a boost to Japanese stocks. The weaker currency helped exporters, as Toyota Motor Corp. rose 1.3%, and Kyocera Corp. added 2.5%. Industrial robotic firm Fanuc Corp. rose 2.5% after Credit Suisse raised the firm’s target price.
Australia failed to take part in the regional rally, after the local mood was hurt by a profit warning from QBE Insurance Group.
The Sydney-based insurer predicted a sharp swing to a full-year loss due to higher claims provisions in North American, forecasting a $250 million net loss for the year. As a result, the company’s stock plunged 22.3%, accounting for around one half of the fall on the index.
CHINA
The main data point in Asia came from China over the weekend, as the country posted its largest trade surplus in nearly five years. Exports rose by a hefty 12.7% from a year earlier, while imports rose 5.3%.
The trade data were a positive sign for both China and the global economy, and it was followed early Monday by inflation data. The country’s consumer-price index rose by 3% from a year earlier in November, in line with expectations for a 3.1% increase.
Shanghai’s CSI 300 index slid 1.42 points to 2,450.87
In other markets;
Korea’s Kospi Index hiked 19.97 points, or 1%, to 2,000.38
Taiwan’s Taiex Index improved 76.90 points, or 0.9%, to 8,444.62
The Singapore Straits Times Index inched lower 0.53 points to 3,113.64
In New Zealand, the NZX 50 gained 4.78 points, or 0.1%, to 4,718.31
In Australia, the S&P/ASX 200 was lower by 41.60 points, or 0.8%, to 5,144.42
