Asian markets mostly higher on US jobs data

Asian markets mostly rose yesterday, tracking gains on Wall Street after strong US jobs data but worries about Greece’s unresolved debt crisis – and default fears – weighed on markets and the euro.
Tokyo was up 1.10 percent, or 97.27 points, at 8,929.20, Sydney added 1.05 percent, or 44.8 points, at 4,296, while Seoul gave up earlier gains to close flat, inching 0.79 points higher at 1,973.13.
Hong Kong and Shanghai were both flat in afternoon trade.
Financial markets in Kuala Lumpur and Wellington were closed yesterday for a public holiday.
Investors cheered the latest batch of US economic data, which hinted that the world’s biggest economy was staging a lasting recovery as the Dow Jones Industrial Average climbed to pre-financial crisis levels on Friday.
The Labor Department figures showed that the US economy added 243,000 new jobs in January, while the unemployment rate fell to 8.3 percent from 8.5 percent in December – the lowest rate since February 2009.
The White House said the jobs report was another sign that the country’s economy was climbing back from the deep 2008-2009 recession.
The market also favoured Facebook’s plan for a share sale that could top USD 5 billion.
The Dow gained 1.23 percent to finish at 12,860.23, its highest closing level since May 2008, while the tech-heavy Nasdaq Composite jumped 1.61 percent to 2,905.66, its best close since December 2000 and the dot-com collapse.
The broad-based S&P 500 rose 1.46 percent to 1,344.90.
Concerns about the US economy “have been overturned by the latest jobs data, eurozone fears are easing, and there’s abundant liquidity being pumped in by developed nations all over global stock markets”, said Samsung Securities analyst Park Seung-Jin in Seoul.
“If Greece finalises talks with the private sector over its debt issue, there could be an even stronger rally.”
However, Athens has not yet finalised an agreement with private lenders to wipe out part of its 350-billion-euro (USD 460-billion) debt mountain, as the country faces heavy loan repayments next month, raising fears it may default.
Greek officials are also in talks with the European Union, the International Monetary Fund and the European Central Bank on further action needed to unlock a new eurozone rescue deal worth 130 billion euros.
The measures demanded by the trio include cuts to Greece’s monthly minimum wage, pensions and civil service jobs.
Leaders from Greek political parties were expected to resume talks yesterday after failing to bridge differences on the reforms demanded by the EU, IMF and Europe’s central bank.
“The constant delays and negative comments from European leaders raises concerns that Greece will not meet the necessary conditions for more funds. That means disorderly default,” said National Australia Bank currency strategist Emma Lawson, according to Dow Jones Newswires.
Yesterday, Indonesia said its gross domestic product grew by 6.5 percent last year, the latest in a string of positive economic news for Southeast Asia’s largest economy.
On forex markets, the euro bought USD 1.3073 and 100.18 yen, down from USD 1.3156 and 100.80 yen in New York late Friday. The dollar changed hands at 76.60 yen, almost flat from New York.
New York’s main contract, West Texas Intermediate crude for delivery in March, was down 54 cents at USD 97.30 a barrel in the afternoon.
Brent North Sea crude for March delivery shed four cents to USD 114.54.
Gold was at USD 1,731.20 an ounce at 0730 GMT, against USD 1,736.50 late Friday.

(AFP)