Tokyo stands out as Asian mar­kets rally

The Myanmar Times - - International / Business -

TOKYO led a surge in Asian stock mar­kets yes­ter­day as a strongerthan-fore­cast jump in US jobs pro­vided some much-needed op­ti­mism after the ham­mer­ing caused by Bri­tain’s vote to leave the Euro­pean Union.

Last week’s data show­ing the world’s big­gest econ­omy saw a surge in new posts last month lit a fire un­der US and Euro­pean shares, which were also boosted by hopes for fresh cen­tral bank stim­u­lus.

The La­bor Depart­ment said 287,000 jobs were cre­ated in June, 112,000 more than ex­pected and a sharp im­prove­ment on May’s 11,000 that had raised fears of a po­ten­tial re­ces­sion.

The news saw all three main in­dexes on Wall Street surge, while Euro­pean mar­kets also ral­lied.

Tokyo’s Nikkei was the stand­out per­former in Asia yes­ter­day, with a land­slide vic­tory for Prime Min­is­ter Shinzo Abe’s rul­ing party pro­vid­ing ex­tra sup­port.

The vic­tory fu­elled spec­u­la­tion for a fresh round of stim­u­lus, re­port­edly worth as much as 20 tril­lion yen (US$120 bil­lion), to kick­start the stum­bling econ­omy.

Nin­tendo was the star, soar­ing more than 20 per­cent on news that its smart­phone game Pokémon Go de­buted at the top of the gam­ing charts. The gains built on a 9pc rise on July 8.

The Ja­panese mar­ket ended 4.0pc higher.

“In­vestors are ba­si­cally wel­com­ing the vic­tory of Mr Abe’s rul­ing coali­tion,” said Daisuke Uno, chief mar­ket strate­gist of Su­mit­omo Mit­sui Bank­ing.

“But the ques­tion is whether or not stock prices can keep up this pace.”

The pos­i­tive mood fanned buy­ing through­out Asia, which suf­fered sharp losses last week on wor­ries about the im­pact of Bri­tain’s shock June 23 de­ci­sion to break away from the EU.

Hong Kong rose 1.5pc, Shanghai added 0.2pc and Seoul gained 1.3pc.

Syd­ney jumped 2.0pc after the rul­ing con­ser­va­tive party won last week’s gen­eral elec­tion, bring­ing an end to un­cer­tainty that had put the coun­try’s AAA sov­er­eign rat­ing at risk.

The up­beat start to the week also saw high-yield­ing cur­ren­cies rise, with the South Korean won up more than 1pc against the dol­lar, In­done­sia’s ru­piah 0.6pc higher and Malaysia’s ring­git also ris­ing more than 1pc.

How­ever, the dol­lar strug­gled to break out against the yen, sit­ting at 100.76 yen in early trade. The pound bought $1.2933, sit­ting around 31-year lows as the vote to leave the EU raises ques­tions about the out­look for the Bri­tish econ­omy. –

Photo: AFP

Peo­ple walk in front of a stock quo­ta­tion board in the win­dow of a se­cu­rity com­pany in Tokyo on July 11.

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