Stocks in Asia Rally After U.S. Jobs; Yen in Focus: Markets Wrap’

Asian stocks gained as trade-war concerns took a backseat to economic optimism following a U.S. jobs report Friday that showed the American economy continued to strengthen without the prior month’s rapid wage gains that stoked inflation fears. The dollar slipped and Treasuries ticked lower.

The MSCI Asia Pacific Index of stocks climbed, with markets from Tokyo to Sydney higher. The Topix index had it’s biggest advance in three weeks though China’s stocks underperformed. The S&P 500 Index rose Friday and the Nasdaq Composite Index soared to a fresh record high after U.S. non-farm payrolls data topped forecasts. The yen fluctuated thanks to political concerns surrounding Japan’s Finance Ministry, run by a stalwart ally of Prime Minister Shinzo Abe, whose administration has endorsed a weak currency.

Strong economic indicators have given fresh impetus to the bull market in global equities that’s now nine years old. A slew of data out of China this week and readings on U.S. inflation and retail sales could provide more insight into the strength of global growth. Appetite for risk assets was boosted at the end of last week as U.S. President Donald Trump accepted an invitation to meet North Korean leader Kim Jong Un and the narrower-than-expected tariff plan from the White House eased speculation of a trade war.

“Our customers are still bullish,” Chris Brankin, chief executive officer at TD Ameritrade Singapore, told Bloomberg TV. “You saw the jobs report last Friday, which was a perfect scenario — you had an uptick in wages, but not too much. Investors have taken that opportunity to buy the market dips and we look for the bull market to continue.”

In Japan, debate is emerging over the political future of Aso, after his ministry altered documents tied to a controversial land sale. Aso has been Abe’s deputy since he took office in December 2012, and is seen as a key backer of the Abenomics program. The yen pared gains after Aso in a press briefing Monday declined to comment on his responsibility, but said he wasn’t thinking of resigning.
Elsewhere, Bitcoin climbed back toward $10,000 after sliding 18 percent last week. Crude oil traded nudged higher above $62 a barrel after last week’s advance.

Courtesy : Bloomberg , MagnadanaNews.com

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