Asia stocks slip on US rates expectations

HONG KONG: Most Asian markets slipped yesterday as a strong US jobs report fuelled expectations the Federal Reserve will bring forward an interest rate rise.

But poor Chinese trade data lifted shares in Shanghai on hopes Beijing will introduce renewed easing measures.

Oil prices advanced after last week enjoying their best weekly gains in four years. Traders are also watching events in Europe as Greece’s new anti-austerity government prepares to meet its creditors.

Tokyo ended 0.36% higher, adding 63.43 points to 17,711.93 as the yen softened against the dollar in reaction to the US jobs data. Shanghai finished up 0.62%, or 19.22 points, at 3,095.12.

But Sydney, which jumped more than 10% during a 12-day winning streak, ended marginally lower, giving up 5.3 points to 5,814.9.

Seoul closed 0.44%, or 8.52 points, lower at 1,947.00 and Hong Kong slipped 0.64%, or 158.39 points, to 24,521.00.

China on Sunday said exports fell 3.2% year-on-year in January. Imports plunged 19.7% -- the largest drop in five years -- owing to lower commodity prices and sluggish domestic demand.

The figures are the latest illustration of China’s slowing economy, which in 2014 expanded at its slowest rate in 24 years.

However, mainland Chinese traders took the news as a catalyst to buy, with hopes that leaders will further loosen monetary policy.

Last week authorities cut the amount of cash which banks must keep in reserve, after lowering interest rates in November.

Investors are also tracking the US Fed after a better-thanexpected jobs report on Friday increased the chances of an early rate increase.

Wall Street’s three main indexes ended lower Friday. The Dow dipped 0.34%, the S&P 500 also lost 0.34%cent and the Nasdaq gave up 0.43%.

The dollar rallied Friday following the announcement, climbing to 119.00 yen in New York from 117.33 yen in Tokyo earlier in the day. Yesterday it was at 118.95 yen.

The euro bought $1.1341 and 134.87 yen yesterday against $1.1316 and 134.65 yen in US trade.

On oil markets the two main contracts extended their recent gains following the US jobs data as well as a decline in the number of US rigs drilling.

US benchmark West Texas Intermediate for March delivery rose 36 cents to $52.05, while Brent crude for March rose 10 cents to $57.90 in afternoon trade.

Last week saw WTI surge seven percent and Brent add 9.4%, their best weekly gains since February 2011.