Index Futures Advance on US as Dollar Slips From High
Bloomberg News
Asian stocks rose, rebounding from a six-day slide in the regional index, while Hong Kong shares fluctuated as protesters in the city vowed to fight on. The dollar was near a four-year high after American payrolls data and gold slid to a 2014 low as platinum and palladium tumbled.
The MSCI Asia Pacific Index added 0.5 percent by 11:36 a.m. in Tokyo, as Japan's Topix index jumped 1.3 percent after the yen's biggest drop for 2014 on Oct. 3. The Hang Seng Index climbed 0.2 percent and Standard & Poor's 500 Index futures rose 0.3 percent. The greenback climbed against the Korean won and was at 109.64 versus the yen. Gold fell as much as 0.7 percent as platinum and palladium sank at least 1 percent.
U.S. employers added 248,000 workers to payrolls last month, exceeding the 215,000 increase predicted by economists as the jobless rate fell to a six-year low. Hong Kong student-protest leaders vowed to continue their sit-in even as numbers dwindled. Speculation the American economy is strong enough to warrant higher interest rates saw the dollar rally the most since 2008 last quarter, as the forthcoming end of U.S. stimulus sent global stocks lower.
'We've had good news from the U.S. which should place the market well,' Mark Konyn, chief executive officer of Cathay Conning Asset Management Ltd. in Hong Kong, said on Bloomberg TV. 'It's a critical week for the Hong Kong protests. There's been a significant shortfall in visitors from the mainland and that clearly has a significant impact on the city's economy.'
Three stocks fell for every two that rose today on the Hang Seng Index, which dropped 2.6 percent last week, the most since March. A gauge of Chinese companies listed in the city swung between a gain of 0.6 percent and a loss of 0.5 percent. Mainland venues, closed since Oct. 1 for national holidays, reopen on Oct. 8.
The Hong Kong dollar, which is allowed to trade in a tight band with the U.S. currency, added 0.06 percent and is heading toward its biggest two-day gain since March.
While demonstrator numbers faded from the tens of thousands that gathered over the weekend, many of the barriers that have shut shops, closed schools and hindered commuters haven't been cleared. Chief Executive Leung Chun-ying told protesters in a televised speech on Oct. 4 that authorities would take 'any necessary action' to restore order, and opening access to the government complex by today was 'the most immediate thing.'
The Kospi index was little changed in Seoul, resuming trading after a holiday Oct. 3. The highest-ranking North and South Korean security advisers met for the first time at the weekend, agreeing to push for improved relations between the two countries.
Topix Gain
The S&P/ASX 200 Index fell 0.4 percent, with New South Wales state, where Australia's main bourse is located, observing a public holiday. Markets in India, Malaysia, the Philippines and Singapore are closed today, to resume tomorrow.
Japan's Topix is rebounding after capping its first weekly retreat since August. Exporters provided the biggest boost, with Toyota Motor Corp. adding 1.9 percent, after the yen slumped 1.2 percent on Oct. 3 versus the U.S. dollar after the unemployment rate in the world's biggest economy dropped to the lowest since July 2008.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, was little changed at 1,077.49 after jumping 1.1 percent Oct. 3 to 1,078.65, its highest close since June 2010. The yield on 10-year Treasuries was one basis point higher today at 2.45 percent.
The Fed, which is on track to end its stimulatory bond buying program this month, has said key borrowing costs will be kept low for a 'considerable time' after purchases end, though any move will depend on the strength of the economy.
Pendulum Swings
The increase in nonfarm payrolls for August was revised up to 180,000, the U.S. Labor Department said Oct. 3. The unemployment rate fell to 5.9 percent from 6.1 percent in August. Average hourly earnings failed to grow in September from a month before, the data showed.
'Strong U.S. jobs data suggests the U.S. economy is recovering faster than the Federal Reserve has anticipated,' David Croy, head of markets research in Wellington at ANZ Bank New Zealand Ltd., wrote in a client note today. 'Wages growth remains disappointing and that will play into Fed Chair Yellen's dovish hands, but the pendulum in favor of normalization is swinging toward action.'
The Korean won was down 0.7 percent to 1,069.25 per dollar. The euro was steady at $1.2515 after losing 1.3 percent last week and reaching a two-year low.
To contact the reporters on this story: Emma O'Brien in Wellington at eobrien6@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editors responsible for this story: Emma O'Brien at eobrien6@bloomberg.net; Nick Gentle at ngentle2@bloomberg.net Nick Gentle
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