Asian shares up on US jobs slowdown
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