HONG KONG, Jan 13 — Asian markets mostly rose today as investor attention turned from the Middle East to the global economic outlook and this week’s planned signing of the China-US trade pact.
While the optimism that characterised the end of 2019 is returning to trading floors, dealers were left a little disappointed by a below-par jobs report out of Washington, which also showed a slower pace of wage growth.
All three main indexes on Wall Street ended in negative territory following the reading, having hit new highs, with profit-taking also playing a role.
However, analysts pointed out that while the data missed expectations, it did suggest that the Federal Reserve will likely maintain interest rates at low levels for some time to come, with some tipping the next move could be another cut.
Hong Kong rallied more than one per cent and Shanghai ended up 0.8 per cent, while Seoul jumped one per cent, Mumbai put on 0.6 per cent and Bangkok gained 0.3 per cent.
Taipei rose 0.7 per cent after Tsai Ing-wen won a landslide victory at the weekend and was returned as the island’s president for a second term, with investors cheering the removal of uncertainty caused by the election.
The Taiex is sitting at its highest levels in three decades, while the Taiwan dollar is also at an 18-month peak, boosted by government moves to attract foreign cash and encourage local firms to invest at home.
Among other bourses, Sydney shed 0.4 per cent, Singapore eased 0.2 per cent and Wellington slipped 0.1 per cent. Tokyo was closed for a holiday.
Dollar slips
Focus this week is on Washington, where China and the United States will finally put pen to paper on their much-vaunted “phase one” trade deal, which has lowered tensions between the economic superpowers and boosted hopes for the global economy.
While there are not expected to be any major announcements at the signing, investors will be looking for signs of progress on the next part of negotiations for a wider agreement.
“Provided the deal inks a commitment from China to increase agricultural products and outlines a dependable enforcement mechanism, the market will go merrily along the way,” said AxiTrader’s Stephen Innes.
“Traders are probably not too concerned about a currency pact as China should hold the line on any weakness in the yuan as we roll forward to negotiating phase two.”
On foreign exchanges, the dollar was down against most high-yielding, riskier units as confidence returns to markets after the volatile start to the year, with the Indonesian rupiah rallying 0.7 per cent and the South Korean won rising 0.5 per cent.
Oil prices were slightly up but remain under pressure on waning concerns about Middle East supplies, rising US shale production and following a pick-up in output from non-OPEC countries such as Norway.
In early European trade, London and Paris each rose 0.2 per cent, while Frankfurt added 0.3 per cent.
Key figures at 0820 GMT
Hong Kong — Hang Seng: UP 1.1 per cent at 28,954.94 (close)
Shanghai — Composite: UP 0.8 per cent at 3,115.57 (close)
Tokyo — Nikkei 225: Closed for a public holiday
London — FTSE 100: UP 0.2 per cent at 7,605.48
Pound/dollar: DOWN at US$1.3000 from US$1.3063 at 2100 GMT Friday
Euro/pound: UP at 85.57 pence from 85.16 pence
Euro/dollar: UP at US$1.1125 from US$1.1120
Dollar/yen: UP at 109.63 yen from 109.47 yen
Brent Crude: UP three cents at US$65.01 per barrel
West Texas Intermediate: UP four cents at US$59.08 per barrel
New York — Dow: DOWN 0.5 per cent at 28,823.77 (close) — AFP
