Asian stocks rose yesterday Thursday Nov 11 as traders welcomed more upbeat US jobs figures while looking to the G20 summit for progress on correcting global imbalances.
The good news from the US Labour Department, on top of news that the US trade deficit had shrunk, boosted the dollar, which was at one-month highs against the yen.
US initial jobless claims stood at 435,000 in the week ending November 6, a decrease of 24,000 from the previous week’s revised figure of 459,000.
The announcement was well below a forecast 450,000 and the lowest since early July, when claims fell to 427,000.
The figures come after the Labor Department last week said 151,000 new jobs had been created in October, more than double the 60,000 expected by most analysts.
TOKYO gained 0.31 percent, or 30.94 points, to end at 9,861.46 as exporters rallied on the back of the weaker currency.
SYDNEY rose 0.61 percent, or 28.8 points.
Investors were looking to the leaders of the G20 leading developed and developing nations to see if they can broker a deal to correct global trade and currency imbalances.
SHANGHAI jumped 1.04 percent, or 32.38 points, to 3,147.74 after government data showed the consumer price index – the main gauge of inflation – had risen at its fastest rate in more than two years.
“Since it’s completely in line with market talk, I think recent corrections in the general market have priced in the effect of the high CPI figure,” Hong Yuan Securities analyst Tang Yonggang said.
Commodities led the gains as investors see high inflation resulting in higher asset prices, Wang Weijun, an analyst at Zheshang Securities, told Dow Jones Newswires.
HONG KONG: Shares rose 0.82 percent as traders welcomed data showing inflation rose at its fastest pace in more than two years in October.
The benchmark Hang Seng Index added 199.69 points to 24,700.30.
Energy plays led the advancers on expectations high inflation will boost prices.
“Inflation will likely stay at high levels, and that could benefit energy producers as it helps drive up commodities and asset prices,” said Francis Lun, general manager of Fulbright Securities
SINGAPORE: Stocks went against the general trend as most Southeast Asian stock markets fell yesterday as investors booked quick profits from recent gains.
The Straits Times Index closed up 0.13 percent, or 4.15 points, at 3,293.39.
Singapore Telecom gained 1.85 percent to S$3.31 despite saying net profit slipped 6.7 percent in the second quarter.
KUALA LAMPUR: THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) paused to stage a meaningful consolidation yesterday. Declining counters outpaced advancing counters by 447 to 381 on the local stock exchange.
The FBM KLCI traded from its intra-day high of 1,527.42 to its intra-day low of 1,513.70. It closed at 1,513.70, posting a day-on-day loss of 14.31 points, or 0.94 percent.
In other markets:
SEOUL plummeted 2.70 percent, or 53.12 points, to end at 1,914.73.
TAIPEI fell 0.16 percent, or 13.68 points, to 8,436.95.
JAKARTA lost 0.33 percent, or 12.35 points, to end at 3,744.61.
MANILA closed 1.86 percent, or 77.90 points, lower at 4,119.67.
BANGKOK fell 1.19 percent or 12.42 points to 1,029.86.
MUMBAI closed down 1.37 percent, or 286.62 points, to end at 20,589.09.
VIETNAM: The VN Index dropped 4.57 points or 1.01 percent to close at 446.69 pts with the total matching order trade of over 26 million shares valued at 623 billion dong.
the HNX Index also plunged 2.39 points or 2.23 percent to 104.79 pts with the total market trade of over 26 million shares worth 463 billion dong.
EUROPE: European stocks fell yesterday, with weaker financials on fresh worries about sovereign debt levels in peripheral euro zone countries outpacing firmer mining shares, which climbed on underlying strength in China’s economy.
At 1218 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,107.59 points after falling 0.7 percent on Wednesday. It is up 71 percent since a record low in March 2009, but is up just 6 percent in 2010.
Banks lost ground on renewed concerns about debt levels in some European countries.
In Europe, the FTSE index of leading British shares was down 19.80 points, or 0.3 percent, at 5,797.14, while Germany’s DAX fell 8.17 points, or 0.1 percent, to 6,711.67. The CAC-40 in France was 25.71 points, or 0.7 percent, lower at 3,862.74
AMERICA: Stocks are sinking after a disappointing outlook from Cisco rattled the market.
Traders are also on edge as world leaders meet in South Korea in hopes of heading off another bad turn in global trade relations.
According to preliminary calculations, the Dow Jones industrial average fell 74, or 0.7 percent, to close at 11,283 Thursday. It had been down as much as 126 earlier.
The S&P 500 index fell 5, or 0.4 percent, to 1,213, and the Nasdaq lost 23, or 0.9 percent, to 2,555.
Cisco disappointed investors with another cut in its sales forecast, sending its shares down more than 16 percent.
Falling shares outnumbered gaining ones two to one on the New York Stock Exchange, where volume came to 950 million shares.
Benchmark Currency Rates USD EUR JPY GBP CHF CAD AUD HKD HKD 7.7519 10.5783 0.0942 12.5000 7.9517 7.7290 7.7464 AUD 1.0007 1.3656 0.0122 1.6136 1.0265 0.9978 0.1291 CAD 1.0030 1.3686 0.0122 1.6173 1.0288 1.0022 0.1294 CHF 0.9749 1.3303 0.0118 1.5720 0.9720 0.9742 0.1258 GBP 0.6201 0.8463 0.0075 0.6361 0.6183 0.6197 0.0800 JPY 82.321 112.337 132.744 84.4431 82.0789 82.2634 10.6195 EUR 0.7328 0.0089 1.1817 0.7517 0.7306 0.7323 0.0945 USD 1.3646 0.0121 1.6125 1.0258 0.9971 0.9993 0.1290 Bloomberg