Friday, 10 March 2017

Asia stocks firm ahead of U.S. jobs, dollar hits seven-week high vs yen

Asian stocks edged up and the dollar rose to seven-week highs versus the yen on Friday, ahead of the closely-watched U.S. non-farm payrolls report due later in the day.
Spreadbetters expected the firmer tone in equities to carry over into Europe, forecasting a higher open for Britain's FTSE, Germany's DAX and France's CAC.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent, taking cues from a modest bounce in Wall Street overnight.

Shares in South Korea rose 0.3 percent and the won firmed slightly after the country's Constitutional Court upheld parliament's impeachment of President Park Geun-hye over a graft scandal involving big business.

In currencies, the euro enjoyed a lift after European Central Bank head Mario Draghi's suggestion on Thursday it was less necessary to prop up the market through ultra-loose monetary policy.

German, British and Italian bond yields extended their rise in Asia as the region's investors reacted to Draghi's comments, traders said.

The euro extended its overnight gains and was last up 0.2 percent at $1.0599.

The dollar fared better against the Japanese yen, rising to 115.435, its highest since Jan. 19, as benchmark U.S. Treasury yields rose to three-month highs on expectations that Friday's nonfarm payrolls report could seal expectations for the Fed to hike rates next week.

Cementing views of tighter U.S. policy was also a report on Thursday that showed the number of Americans applying for unemployment benefits rose to 243,000 last week, rebounding from a near 44-year low, but continuing to point to a tightening labor market. 

Wall Street was marginally higher the day before, underpinned by speculation the widely-anticipated labor market report on Friday would show U.S. payrolls growth in February was far more than economist forecast.

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