GLOBAL MARKETS-Dollar firmer, Asia stocks mostly higher

By Staff
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HONG KONG, Dec 11 (Reuters) Asian stocks were mostly firmer on Monday buoyed by exporters such as Honda Motor after the dollar extended its gains on the back of an upbeat US employment report.

But investors gave gold a wide berth, knocking spot gold to three-week lows, while crude slid below $62 a barrel as ample US stockpiles offset worries of more OPEC production cuts. Oil was down 23 cents at $61.80.

US bond yields were supported as investors trimmed back expectations of an interest rate cut following the non-farm payrolls data, which showed 132,000 jobs created in November, topping Wall Steet's estimates of 110,000 jobs.

By the midsession, Japan's Nikkei had climbed 0.55 per cent, recovering from Friday's 0.34 per cent fall, with Honda Motor T> , electronics components maker Kyocera and Sony all gaining more than 1 percent.

''High-tech stocks are seeing benefits from a weaker yen, and that is helping to lift the index,'' said Toshihiko Matsuno, assistant general manager of investment research at SMBC Friend Securities.

But Matsuno expects caution ahead of the Federal Reserve policy-setting meeting on Tuesday to keep the market at current levels.

Nintendo jumped 2.6 per cent after a strong debut for its new Wii video game console, while Australia's Qantas Airways added 4.8 percent ahead of an expected formal takeover offer from a consortium.

Also in favour, South Korea's Woori Financial Group advanced 3.8 per cent as investors anticipated a planned sale of the government's 78 per cent stake in the firm, and Star Cruises surged 21 per cent after it won the right to build and run a $3.1 billion casino in Singapore.

But market heavyweight Samsung Electronics eased 1 per cent on worries about the strength of the won, while Hong Kong's HSBC shed 0.3 per cent, extending to four days its downtrend after a revenue growth warning last week.

The MSCI index of Asian stocks outside Japan inched lower, remaining shaky after snapping 11 straight weeks of gains last week.

Taiwan's TAIEX slipped 0.6 per cent after a narrow victory at the weekend in a key mayoral race by the embattled ruling party suggested a thawing of relations with China is unlikely in the near term.

But Australia's key S&P/ASX 200 index and Hong Kong's Hang Seng index both gained more than 0.7 per cent, while Singapore's Straits Times climbed 1.2 per cent.

DOLLAR FIRM The dollar strengthened against the euro and yen, further supported by market talk the European Central Bank was checking rates and a report from Japan's Jiji news agency that the chances of a rate rise in Japan at next week's policy meeting have decreased.

The euro bought $1.3134, down from near $1.3200 late in New York on Friday and a 20-month high of $1.3370 set last week.

The single currency slipped to 153.40 yen The dollar edged up to 116.79 yen and was well off a four-month low of 114.43 yen plumbed last week.

The firmer dollar pushed spot gold to an early low of about $622.60 an ounce, a level last seen on Nov. 21, and off $624.70/626.20 late in New York on Friday.

Japan's benchmark 10-year government bond yield eased 1.5 ticks to 1.675 percent, remaining under pressure after Friday's weaker-than-expected core private-sector machinery orders data cast doubts on whether the Bank of Japan will tighten rates at next week's meeting.

''The market is seeing some buybacks as investors now think the possibility of a January rate hike is greater than for one in December,'' said Hidenori Suezawa, chief fixed income strategist at Daiwa Securities SMBC.

The US 10-year bond yield was trading at around 4.55 percent, down a touch from near two-week highs of 4.56 per cent in late US trade on Friday.

Reuters SP RS0942

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