HONG KONG, Sept 27 — Asian markets mostly rose today following a bounce on Wall Street fuelled by better-than-forecast US jobs data.
However, trading is tentative as US lawmakers remain unable to reach agreement over a budget just days before a deadline kicks in that could see parts of the federal government shut down.
Sydney added 0.24 per cent, or 12.6 points, to 5,307.1, while Seoul closed 0.22 per cent higher, adding 4.48 points to 2,011.80. Shanghai rose 0.20 per cent, or 4.29 points, to 2,160.03.
On Wall Street yesterday the Dow and S&P enjoyed their first rises since September 19, when they hit fresh record highs.
US investors were cheered by data from the Labor Department showing new claims for unemployment benefits sank by 5,000 to 305,000 last week, beating forecasts of a rise to 325,000.
And while pending home sales fell 1.6 per cent last month, it was better than the 2.3 per cent fall expected.
The Dow advanced 0.36 per cent, the S&P 500 tacked on 0.35 per cent and the Nasdaq was 0.70 per cent higher.
The gains came despite growing tensions on Capitol Hill, where Republicans and Democrats are locked in yet another stand-off over government funding as the Monday night deadline approaches.
With Democrats refusing to agree to Republican demands that President Barack Obama’s healthcare bill be cut back there are fears that hundreds of thousands of US state employees will be sent home from Tuesday.
More critical, though, is a looming row over the US debt ceiling, which must be raised before mid-October, when the government runs out of money to pay its bills.
If the spending limit is not hiked, Washington would be unable to service its debt obligations and in turn default. A similar stand-off in 2011 sent global markets sliding and led to a historic downgrade of the country’s AAA sovereign rating by Standard & Poor’s.
In currency trading the dollar bought ¥98.54 in afternoon Tokyo trade, compared with ¥98.94 late in New York. The euro was at US$1.3500 from US$1.3488, while it also fetched ¥133.02 against ¥133.48.
Japanese shares had rallied yesterday on reports that the government was considering a cut to corporation tax to offset an expected hike in sales tax.
However, the Nikkei was unable to add to those gains today after Finance Minister Taro Aso threw into question a timeline for any business tax cuts, which he described as a “long-term issue”.
Traders were unmoved by Japanese data showing inflation at a five-year high as most of the increase was driven by higher fuel bills. Energy imports soared in the wake of the Fukushima atomic disaster in 2011, forcing the shutdown of Japan’s nuclear reactors.
On oil markets New York’s main contract, West Texas Intermediate for delivery in November, dipped 58 cents to US$102.45, while Brent North Sea crude for November was down 45 cents at US$108.76.
Gold cost US$1,324.60 at 1045 GMT compared with US$1,335.92 yesterday.
In other markets:
– Wellington added 0.36 per cent, or 17.21 points, to 4,782.68.
Air New Zealand was up 3.78 per cent at NZ$1.51, Telecom rose 1.28 per cent to NZ$2.37 and Warehouse was steady at NZ$3.77.
– Taipei rose 0.56 per cent, or 46.0 points, to 8,230.68.
Taiwan Semiconductor Manufacturing Co. rose 1.48 per cent to TW$103.0 while Hon Hai was 0.66 per cent higher at TW$76.3.
– Manila fell 0.43 per cent, or 27.65 points, to 6,379.81.
Alliance Global Group tumbled 2.15 per cent to 25 pesos while Philippine Long Distance Telephone slipped 0.88 per cent to 2,942 pesos.
– Bangkok slipped 0.51 per cent, or 7.27 points, to 1,417.49.
Coal producer Banpu lost 3.36 per cent to 28.75 baht and PTT Plc shed 0.31 per cent to 326.00 baht.
– Singapore closed up 0.50 per cent, or 15.87 points, at 3,210.18.
United Overseas Bank gained 0.14 per cent to SG$21.28 while oil rig maker Keppel Corp eased 0.66 per cent to SGUS$10.53.
– Jakarta rose 0.40 per cent, or 17.83 points, to 4,423.72.
Bank Negara Indonesia gained 1.18 per cent to 4,275 rupiah, while miner Aneka Tambang fell 0.70 per cent to 1,420 rupiah.
– Kuala Lumpur gained 0.11 per cent, or 2.00 points, to 1776.16.
Genting Malaysia ended 2.4 per cent higher at RM4.26 while UMW Holdings shed 3.5 per cent to RM12.16.
– Mumbai fell 0.84 per cent, or 166.58 points, to 19,727.27.
United Spirits was up 6.51 per cent at 2,620.65 rupees while pharma company Wockhardt was down 4.99 per cent at 549.85 rupees. — AFP
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