Source: CNBC
Asian stocks traded higher on Monday, after a solid U.S. jobs report sent U.S. equities soaring on Friday.
Nonfarm payrolls data showed the U.S. economy created 211,000 jobs for November, beating market expectations. It is likely to have been the final sign for the Federal Reserve that conditions are right for a hike in interest rates in December.
Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note that despite the solid jobs number for November, the imminent Fed rate hike is expected to be modest.
Nonfarm payrolls data showed the U.S. economy created 211,000 jobs for November, beating market expectations. It is likely to have been the final sign for the Federal Reserve that conditions are right for a hike in interest rates in December.
Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note that despite the solid jobs number for November, the imminent Fed rate hike is expected to be modest.
"The hike when it comes will be a sign of how the U.S. has
recovered since the GFC [global financial crisis]; and that subsequent
rate hikes will likely be gradual and tied to progress in lifting
inflation back towards the Fed's target."
Oil prices will remain in focus after U.S. crude futures once again dipped below the $40-mark. In Asian trade, the West Texas Intermediate (WTI) futures traded at 46 cents or 1.15 percent lower at $39.51. The internationally traded Brent was down 20 cents or 0.47 percent at $42.80.
Last Friday in Vienna, OPEC left its production levels unchanged for the third year in a row despite a global supply glut.
U.S. markets closed last Friday 2 percent higher. The Dow Jones Industrial Average was up 370 points or 2.12 percent at 17,848. The S&P 500 was up 42 points or 2 percent at 2,092 and the Nasdaq was up 105 points or 2 percent at 5,142.
Oil prices will remain in focus after U.S. crude futures once again dipped below the $40-mark. In Asian trade, the West Texas Intermediate (WTI) futures traded at 46 cents or 1.15 percent lower at $39.51. The internationally traded Brent was down 20 cents or 0.47 percent at $42.80.
Last Friday in Vienna, OPEC left its production levels unchanged for the third year in a row despite a global supply glut.
U.S. markets closed last Friday 2 percent higher. The Dow Jones Industrial Average was up 370 points or 2.12 percent at 17,848. The S&P 500 was up 42 points or 2 percent at 2,092 and the Nasdaq was up 105 points or 2 percent at 5,142.
Chinese markets in positive territory
Chinese markets traded higher in the morning session, ahead of a deluge of economic data due this week such as trade numbers, consumer and producer price indexes, industrial production and retail sales.
The Shanghai Composite index was up 11 points or 0.31 percent at 3,536. The smaller Shenzhen Composite was up 24 points or 1 percent at 2,256. Away from the mainland, Hong Kong's Hang Seng index was up 68 points or 0.31 percent at 22,304.
Finance stocks weighed, with brokerages trading lower between 0.6 and 2 percent. Banking stocks were also in the red.
Shares in Citic Resources were down 2.35 percent after the company issued a profit warning, saying it expected a substantial net loss in 2015 due to lower oil prices and decline in sales of commodity-related assets.
Its sister company Citic Securities reported on Sunday that it was not able to contact two of its top executives. Reuters reported Citic said it could not reach its most senior investment bankers Jun Chen and Jianlin Yan. Business site Caixin had reported on Friday the bankers were detained, though it was not clear why. Shares in Citic Securities were down 2.3 percent.
In Hong Kong, Bank of Jinzhou made its IPO trading debut, becoming the second Chinese bank to do so in as many weeks. It stock traded at HK$4.69 ($0.61) during market open.
The Shanghai Composite index was up 11 points or 0.31 percent at 3,536. The smaller Shenzhen Composite was up 24 points or 1 percent at 2,256. Away from the mainland, Hong Kong's Hang Seng index was up 68 points or 0.31 percent at 22,304.
Finance stocks weighed, with brokerages trading lower between 0.6 and 2 percent. Banking stocks were also in the red.
Shares in Citic Resources were down 2.35 percent after the company issued a profit warning, saying it expected a substantial net loss in 2015 due to lower oil prices and decline in sales of commodity-related assets.
Its sister company Citic Securities reported on Sunday that it was not able to contact two of its top executives. Reuters reported Citic said it could not reach its most senior investment bankers Jun Chen and Jianlin Yan. Business site Caixin had reported on Friday the bankers were detained, though it was not clear why. Shares in Citic Securities were down 2.3 percent.
In Hong Kong, Bank of Jinzhou made its IPO trading debut, becoming the second Chinese bank to do so in as many weeks. It stock traded at HK$4.69 ($0.61) during market open.
Japan, South Korea markets back in positive territory
The Japanese and South Korean markets were back in the
green, ahead of key economic data due this week. Japan will release its
latest update of third quarter gross domestic product (GDP) data, the
broadest measure of economic health, and machinery orders while the Bank
of Korea will announce its monetary policy decision later this week.
The Nikkei 225 was up 236 points or 1.2 percent to 19,740 while the Topix traded 15 points or 1 percent higher at 1,589.
The yen traded flat against the dollar at 123.14.
Export stocks saw a boost in morning trade, with shares in the like of Toyota, Sony, Sharp, and Canon trading between 0.52 and 1.5 percent higher. Other blue chip stocks also traded higher.
Takata shares were down near 1.8 percent after Japan's transport ministry last Friday ordered car-makers to phase out the use of Takata air bag inflators by mid-2018. Large numbers of vehicles were recalled in the U.S. and elsewhere due to faulty Takata-made airbags that resulted in passenger injuries and some deaths.
The Seoul Kospi was flat, up 1 point or 0.07 percent at 1,976.
Blue chip stocks were mostly up, with shares in steel manufacturer Posco up 0.88 percent, and Kepco up 0.73 percent. Samsung Electronics pared early gains and traded flat. Shares in SK Hynix also fell 0.64 percent.
The Nikkei 225 was up 236 points or 1.2 percent to 19,740 while the Topix traded 15 points or 1 percent higher at 1,589.
The yen traded flat against the dollar at 123.14.
Export stocks saw a boost in morning trade, with shares in the like of Toyota, Sony, Sharp, and Canon trading between 0.52 and 1.5 percent higher. Other blue chip stocks also traded higher.
Takata shares were down near 1.8 percent after Japan's transport ministry last Friday ordered car-makers to phase out the use of Takata air bag inflators by mid-2018. Large numbers of vehicles were recalled in the U.S. and elsewhere due to faulty Takata-made airbags that resulted in passenger injuries and some deaths.
The Seoul Kospi was flat, up 1 point or 0.07 percent at 1,976.
Blue chip stocks were mostly up, with shares in steel manufacturer Posco up 0.88 percent, and Kepco up 0.73 percent. Samsung Electronics pared early gains and traded flat. Shares in SK Hynix also fell 0.64 percent.
ASX back in positive territory
The Australian market was back in positive territory after shedding three weeks' worth of gains last Friday. Monday's open was boosted by strong performances in banking and resources stocks but the market lost momentum, weighed by low commodity and base metal prices. The main ASX 200 index traded 14 points or 0.27 percent higher at 5,167 in afternoon trade.Banking stocks traded between 0.3 and 0.9 percent higher as a result of improved investor confidence, after trimming early morning gains.
Resources producers also pared back early gains. Shares in Rio Tinto and BHP Billiton, Australia's two biggest miners, traded mixed. Rio Tinto was down 0.25 percent while BHP Billiton was up 0.6 percent.
Some iron ore producers felt the effects of prices dropping to a decade low of $39.40 a tonne. After opening in the green, shares in Fortescue was down 1.32 percent, BC Iron was down 4.55 percent. Atlas Iron continued to trade 2.78 percent higher while Mount Gibson was up 1.4 percent.
Gold producers saw significant boost to their stocks after prices soared last week. Spot gold traded near the $1,082-mark after the nonfarm payroll data reaffirmed the market's belief for a December rate hike.
Evan Lucas, market strategist at spreadbetter IG, said, "Gold has had an amazing week, up 2.65 percent. What's even more amazing was the snap back on Friday after the NFP surging 2.25 percent, which was in conjunction with the USD surge. It was a complete market miss-match; the logical conclusion is short-covering of the heavily short gold paper trade. The positioning in the US bond market and USD suggest this move in Australia won't last long."
Shares in Newcrest was up 3.05 percent, Evolution Mining up 4.34 percent, and Alacer Gold seeing an uptick of 1.87 percent.
Oil stocks, on the other hand, saw declines after U.S. oil prices fell into the sub-$40 region. Shares in Santos saw heavy losses of over 8 percent in morning trade.
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