Asian shares up on US jobs slow­down

The Myanmar Times - - International Business -

ASIAN stock mar­kets ral­lied yes­ter­day and the dol­lar dipped as a slow­down in US jobs cre­ation doused ex­pec­ta­tions for an in­ter­est rate hike this month while at the same time show­ing the world’s top econ­omy was still im­prov­ing.

The much-an­tic­i­pated read­ing show­ing 151,000 new posts in Au­gust was be­low ex­pec­ta­tions but in­di­cated hir­ing re­mained solid.

Be­fore its re­lease an­a­lysts had marked the read­ing as a guide to the Fed­eral Re­serve’s plans for mone­tary pol­icy after the bank’s boss Janet Yellen – and later her vice chair Stan­ley Fis­cher – sug­gested a rate rise could come this year.

While mar­ket-watch­ers sug­gested the be­low-par read­ing was likely to mean the Fed will hold off mov­ing this month, there are still some who think a hike could come soon.

“Mar­kets hardly took it as a bad num­ber, with con­jec­ture from both sides of the fence on what it means for the Fed,” Cameron Ba­grie, chief econ­o­mist in Welling­ton at ANZ Bank New Zealand, said in a re­search note.

“Our take is that the (Fed pol­icy com­mit­tee) will con­tinue to pro­ceed cau­tiously, with a Septem­ber rate hike a tad early.”

The ini­tially weaker yen lifted Ja­panese stocks more than 1 per­cent but its strength­en­ing through the day weighed on ex­porters and the Nikkei ended 0.7pc higher.

Hong Kong added 1.7pc while Shang­hai ended up 0.2pc.

Syd­ney was 0.9pc up by the close, Sin­ga­pore climbed 1.3pc and Taipei put on 1.1pc. There were also gains in Welling­ton and Jakarta. – AFP

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