Asian traders cau­tious, dol­lar climbs

The Myanmar Times - - International Business -

ASIAN in­vestors trod war­ily in hol­i­day-thinned trade yes­ter­day and the dol­lar climbed after last week’s drop on be­low-par US jobs data.

The labour depart­ment said on Oc­to­ber 7 that fewer jobs than ex­pected were cre­ated in the world’s top econ­omy in Septem­ber.

The news left the main in­dexes on Wall Street in nega­tive ter­ri­tory and sent the dol­lar lower against the yen.

How­ever, an­a­lysts said the fig­ures were un­likely to pre­vent the Fed­eral Re­serve from rais­ing in­ter­est rates by year’s end.

The dol­lar was at 103.10 yen from 102.93 yen in New York yes­ter­day.

In share trad­ing, Shang­hai, which was closed last week for a na­tional hol­i­day, ended up 1.5 per­cent, while Sydney closed 0.2pc higher.

Sin­ga­pore and Welling­ton eased, while Bangkok tum­bled 3pc. Tokyo, Hong Kong and Taipei were closed for pub­lic holidays.

Seoul ended up 0.2pc but Sam­sung Elec­tron­ics was bat­tered by re­ports that it had sus­pended pro­duc­tion of its flag­ship Galaxy Note 7 hand­set after dis­trib­u­tors stopped of­fer­ing re­place­ments be­cause of con­tin­ued safety con­cerns.

Asian sen­ti­ment was given a lift by the tape of Don­ald Trump mak­ing lewd com­ments about women, which an­a­lysts said could deal a se­vere blow to his pres­i­den­tial hopes.

“It tends to be the case that when it looks more likely that [Hil­lary] Clin­ton will win, mar­kets tend to rally,” Shane Oliver, Sydney-based head of in­vest­ment strat­egy at AMP Cap­i­tal In­vestors, told Bloomberg News.

Oth­ers said they con­sid­ered Ms Clin­ton was still favoured to beat Mr Trump after a vi­cious sec­ond de­bate late Sun­day, but warned of volatil­ity ahead of the Novem­ber 8 elec­tion.

Sim Moh Siong, a cur­rency strate­gist at Bank of Sin­ga­pore, said: “Clin­ton should still main­tain” her lead. For risky as­sets, it’s still a bumpy pe­riod head­ing into Novem­ber 8. There’s still a third de­bate com­ing up.”

Boom­ing ex­ports mean­while pumped up Ger­many’s trade sur­plus in Au­gust, as calls grow for Europe’s largest econ­omy to use the cash it brings in to nur­ture growth.

Firms ex­ported 102.3 bil­lion eu­ros ($114.3 bil­lion) of goods in Au­gust 2016 ad­just­ing for sea­sonal and cal­en­dar ef­fects, the fed­eral sta­tis­tics of­fice Des­tatis said.

That was an in­crease of 5.4pc over July’s fig­ure, which had seen ex­ports fall to their low­est level since Jan­uary 2015 in the wake of Brexit.

Ger­many im­ported 80.1 bil­lion eu­ros of goods in Au­gust, a slower in­crease of just 3pc over the pre­vi­ous month’s value – leav­ing the trade sur­plus stand­ing at 22.2 bil­lion eu­ros.

Ex­ports to EU coun­tries out­side the euro sin­gle cur­rency saw the strong­est growth, gain­ing 11.8pc.

Sales of Ger­man goods to fel­low mem­bers of the 19-na­tion eu­ro­zone also grew strongly, up 8.8pc, while sales to the rest of the world in­creased by 9.6pc. –

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