Asia stocks edge up as dealers eye US, China

HONG KONG: Dealers edged up in Asia yesterday, ending an upbeat week across global trading floors on a high, with focus turning to a key US jobs report and the start of China’s annual policy gathering.

After the miserable start to the year for investors, March has so far been a ray of sunshine thanks to some positive US data and Beijing’s decision to ease monetary policy.

A pick-up in oil prices --which in January were near 13-year lows below $30 a barrel --has also provided some stability, with energy firms breathing a sigh of relief.

“US data continues to shine, oil continues to firm and risk appetite is coming back into all aspects of the markets,” Angus Nicholson, market analyst at IG in Melbourne, wrote in an email to clients.

However, after this week’s gains dealers are watching upcoming events nervously. Yesterday Washington will report how many jobs were created in the US economy in February. That comes after better-than-expected reports on private jobs, the manufacturing sector, construction spending and auto sales.

The figures come two weeks before the Federal Reserve holds its next policy meeting, which will be keenly watched to see if it hikes interest rates again or hints at its plans.

Today sees the start of China’s National People’s Congress, where delegates will sign off on a new five-year economic plan. There are growing hopes that authorities will also unveil measures to shore up the world’s number two economy, which is growing at its slowest pace in a quarter of a century.

Earlier this week the government cut the amount of cash banks must keep in reserve as it looks to get them lending again.

Tokyo’s Nikkei ended 0.3% higher, while Hong Kong added 1.2% in the afternoon. Shanghai closed 0.5% higher and Sydney added 0.2% but Seoul dipped 0.1%.

Oil prices, for most of this year a millstone around the neck of traders, retained recent gains on hopes that key producers, including Russia and Opac titan Saudi Arabia, would be able to agree to a deal to freeze or cut output.

In afternoon trade US benchmark West Texas Intermediate was up 0.6% at $34.78 while Brent was 0.5% at $37.25.

The broadly positive outlook also helped emerging market currencies that have been battered this year by a flight to safer, lower-yielding, investments.

The Australian dollar put on 0.5%, the South Korean won added 1% and Thai baht added 0.2%, while Indonesia’s rupiah gained 0.5%.