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5 years ago

Asian stocks quiet, dollar firm after upbeat US job data

File Photo (Collected)
File Photo (Collected)

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Asian shares hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen.

MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat. It had scaled a four-month peak on Friday along with a surge in its global peers.

Trade was subdued with many of the region’s markets closed for the Lunar New Year. China’s financial markets are closed all week, while those in South Korea are shut until Thursday.

Hong Kong’s Hang Seng, which is trading for only half a day, edged up 0.2 per cent.

Japan’s Nikkei added 0.5 per cent, reports Reuters.

On Wall Street on Friday optimism from a surge in January US job growth was offset by a weaker-than-expected outlook from Amazon.com Inc that battered retail stocks.

The Dow nudged up 0.26 per cent while the Nasdaq shed 0.25 per cent.

Global equity markets performed strongly last week after the Federal Reserve pledged to be patient with further interest rate hikes, signalling a potential end to its tightening cycle.

Friday’s robust economic data triggered a sharp rebound in US Treasury yields, in turn lifting the dollar.

On Monday, the US currency was a shade higher at 109.555 yen after advancing 0.6 per cent on Friday.

The euro was little changed at $1.1456 after getting pulled back from a high of $1.1488 on Friday.

The Australian dollar was mostly steady at $0.7244 after slipping 0.4 per cent the previous session.

The benchmark 10-year US Treasury yield was at 2.686 per cent after climbing nearly 6 basis points on Friday to pull away from a four-week low of 2.619 per cent earlier last week.

West Texas Intermediate (WTI) US crude oil futures extended Friday’s rally and were last up 0.3 per cent at $55.42 per barrel.

On Friday, WTI futures had rallied 2.7 per cent on the upbeat US job report, signs that Washington’s sanctions on Venezuelan exports have helped tighten supply and data showing US drillers cut the number of oil rigs.

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