TOKYO – Asian shares rose Monday after Wall Street rose on a strong U.S. employment report and as global investors recovered gradually from post-Brexit jitters.
KEEPING SCORE: Japan’s benchmark Nikkei 225 added 3.6 per cent to 15,642.53 in morning trading following a weekend election that landed the ruling coalition a resounding victory, ensuring stability and more stimulus spending. South Korea’s Kospi gained 1.3 per cent to 1,987.78. Hong Kong’s Hang Seng rose nearly 2.0 per cent to 20,964.99, while the Shanghai Composite was up 0.8 per cent at 3,013.33. Other regional markets were also higher.
U.S. JOBS: Markets were cheered by a strong June job report out of the U.S. that sent Wall Street to nearly record highs. The Labor Department said U.S. employers added 287,000 jobs last month. That was far more than analysts expected, and after weak reports from April and May, it suggests the economy and job market haven’t run out of steam. A strong American economy is a boon to Asia, which relies on exports.
WALL STREET: The Dow Jones industrial average surged 250.86 points, or 1.4 per cent, to 18,146.74. The S&P 500 rose 32 points, or 1.5 per cent, to 2,129.90. The Nasdaq composite advanced 79.95 points, or 1.6 per cent, to 4,956.76.
THE QUOTE: “While the US equity market response is encouraging, it is important not to factor too much into one single monthly report, as more data is needed to confirm that the dismal May jobs report was an aberration,” warned Stephen Innes, senior trader at OANDA Asia Pacific.
ENERGY: Benchmark U.S. crude sank 45 cents to $44.96 a barrel in New York. It added 27 cents to $45.41 a barrel Friday. Brent crude, a standard for international oil prices, lost 41 cents to $46.35 a barrel in London.
CURRENCIES: The dollar rose to 100.68 yen from 100.58 yen late last week in Asia. The euro slipped to $1.1057 from $1.1080.
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Her work can be found at http://bigstory.ap.org/content/yuri-kageyama
