Asian stocks gain after US jobs data beats forecasts

Monday, July 10th, 2017 - Jobs

Asian stocks rallied on Monday in morning session lifted by Wall Street’s strong performance late last week and after Chinese inflation data for June met market expectations.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.15% while Japan’s Nikkei rose 0.6%. Australian stocks were up 0.7% and South Korea’s KOSPI added 0.01%.

Markets in greater China were mixed. The Hang Seng Index was up 0.48%, but markets on the mainland traded lower. The Shanghai Composite was off by 0.17% and the Shenzhen Composite slid 0.23%.

In an economic data released on Friday, US jobs growth beat forecasts. However, a lag in wage increases led investors to bet wage data would limit the extent of the Federal Reserve’s hawkishness.

June inflation data out of China was in line with expectations. China CPI gained 1.5% on year and PPI rose 5.5%.

In another move, at the Group of 20 meeting in Hamburg over the weekend, the world’s leading economies broke with the US on climate policy and US President Donald Trump and his Chinese counterpart Xi Jinping agreed to work together on North Korea’s nuclear threat and bilateral trade.

In corporate news, shares of Hong Kong-listed Orient Overseas International jumped 20.08% on news of a $6.3 billion offer from shipping company Cosco Shipping Holdings.

In commodities markets, oil crept higher early on Monday after sliding on Friday on a report showing US crude production rose last week, just as OPEC exports hit a 2017 high, rekindling concerns about a supply glut.

US oil rose 0.6% to $44.51 a barrel on Monday, making up some of Friday’s 2.8% loss. Global benchmark Brent advanced 0.6% to $47.01, following Friday’s 2.9% slide.

Gold was steady at $1,212.56, close to the four-month low touched on Friday as the dollar surged.

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