Asian shares buoyed by strong US job data

SYDNEY — Asian stocks edged up on Monday, catching some of Wall Street’s momentum after surprisingly strong US jobs data, although regional gains were capped by concerns about China’s economic slowdown due to the prolonged Sino-US trade war.

Japan’s benchmark Nikkei added 0.33% while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.27%. China’s Shanghai Composite stood flat and so did Hong Kong’s Hang Seng.

European shares are expected to give up some of the gains made on Friday after the US payrolls data, with pan-European Euro Stoxx 50 futures down 0.14%, German DAX futures slipping 0.04% and FTSE futures losing 0.35%.

Wall Street rose to near record highs on Friday on the strong jobs data and some signs of optimism about the US-China trade talks, with the benchmark S&P 500 closing within 0.2% of its peak set in late November.

US job growth increased by the most in 10 months in November as the health care industry boosted hiring and production workers at General Motors returned to work after a strike, in the strongest sign that the world’s largest economy is in no danger of stalling.

“This economy is still climbing and shattering the records for longevity,” said Chris Rupkey, chief financial economist at MUFG Union Bank.

“Right now, the clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war.”

Beijing hopes that it can reach a trade agreement with the United States that satisfies both sides as soon as possible, China’s Assistant Commerce Minister Ren Hongbin said on Monday.

Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

Still, investors think things could change if trade tensions escalate further, especially if Mr. Trump goes ahead with the planned tariffs on some $156 billion worth of products from China in mid-December.

The market has been largely working on the assumption that those tariffs, which cover several consumer products such as cellphones and toys, will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal.

Meanwhile, China’s exports shrank for the fourth consecutive month in November, sending shivers through a market already concerned about damage being done to global demand by the trade war.

But growth in imports was seen as a possible sign that Beijing’s stimulus efforts over the last two years were helping to stir demand.

“Although the trade data did not have much impact, concerns about slowing growth and a lack of government stimulus are capping the Chinese shares’ upside,” said Naoki Tashiro, president of TS China Research.

“Yet chip-related shares are doing well, suggesting investors are still positive on the outlook of Sino-US trade talks overall.”

The Federal Reserve’s Open Market Committee kicks off its two-day policy meeting on Tuesday. The central bank is expected to highlight the economy’s resilience and keep interest rates on hold in the range of 1.50-1.75%.

Analysts said the much betterthan-expected jobs report offset mixed signals from recent economic data and validated the Fed’s wait-and-see stance on interest rates after three “insurance cuts” this year. —