Asian markets were mixed on Monday, with Tokyo’s Nikkei extending its rally after last week’s Bank of Japan stimulus that sent the yen to its lowest level in almost four years against the dollar.
A worse-than-expected jobs report from the United States added to selling pressure, while ongoing tensions on the Korean peninsula and a bird flu outbreak in China also weighed on sentiment.
Tokyo rose 2.01 percent by the break to its highest level since August 2008, while Sydney added 0.20 percent. Hong Kong slipped 0.32 percent, Shanghai fell 1.66 percent in the first session back after a long weekend and Seoul shed 0.21 percent.
The Japanese central bank’s announcement last week of a new wave of monetary easing has sent the yen tumbling about six percent against the dollar, which has in turn fuelled a run-up in Tokyo stocks, with exporters the big winners.
In the first meeting under new governor Haruhiko Kuroda, the BoJ said he would double the money supply and aggressively increase asset purchases, while vowing no let-up in the battle against falling prices.
On Monday in early Asian trade the dollar climbed to 98.40 yen and the euro sat at 128.04 yen, from 97.54 yen and 126.70 yen in New York Friday. That compares with 92.71 yen and 119.66 yen ahead of the announcement.
The euro bought $1.2992, against $1.2990 Friday.
The lead from Wall Street was weak after the US Labor Department reported the economy added only 88,000 nonfarm jobs in March, a third of the February gain and the slowest growth in nine months. The figure was well below the average estimate of 192,000.
The Labor Department also reported the unemployment rate ticked down to 7.6 percent from 7.7 percent in February, as people dropped out of the workforce.
The Dow fell 0.28 percent and the S&P 500 slid 0.43 percent, while the Nasdaq shed 0.65 percent.
But David Scutt, treasury dealer at Arab Bank, told clients in a note that the outlook was not so bad.
“While undeniably weak, there were a few signs within the report that the slowdown may well be fleeting with temporary positions and hours worked both increasing for the month, something that usually suggests employers may well be on the cusp of renewed hiring in the second half of the year,” he said, according to Dow Jones Newswires.
South Korea said the North looked to be preparing a fourth nuclear test, adding fuel to already high tensions between the two sides, which has seen Pyongyang threaten nuclear war with its neighbour and the United States.
The United States has said it is taking “all necessary precautions” after the North moved medium-range missiles to its east coast last week as part of a stand-off in response to UN sanctions and South Korea-US military drills.
In China traders are keeping tabs on a the outbreak of a new strain of bird flu, which has infected 21 people, killing six.
Farming- and tourism-related stocks were the biggest losers, with Air China down 8.1 percent while agriculture firm New Hope Corp. off 6.9 percent.
However, the World Health Organization said Monday there was no proof that the H7N9 virus was being transmitted between people, despite several members of a family falling ill in Shanghai.
Oil prices rose, with New York’s main contract, light sweet crude for delivery in May adding seven cents to $92.77 a barrel and Brent North Sea crude for May up 34 cents to $104.46.
Gold was at $1,577.04 an ounce at 0310 GMT compared with $1,554.60 late on Friday.
Source: AFP
