HONG KONG: Asian markets rose Monday as investors tracked a record on Wall Street fuelled by a better-than-expected jump in US jobs, while financials were boosted by Donald Trump’s review of trading regulations.
However, the dollar’s struggles extended as the employment report also showed tepid wage growth, which chimed with the Federal Reserve’s plans to lift interest rates only gradually.
While the week has started on a positive note, investors are on edge as they try to assess how a Trump presidency will affect the global economy following outbursts against trade deals.
New York’s main indexes provided a positive lead, with the Dow bouncing back above 20,000 points and the Nasdaq hitting an all-time high after figures showed 227,000 new jobs were created in January.
Tokyo ended the morning session 0.3 percent higher, while Hong Kong added 0.7 percent and Shanghai 0.2 percent. Sydney put on 0.1 percent and Seoul 0.2 percent while Taipei, Manila and Jakarta also pushed up.
Among the big winners were banks as traders cheered Trump’s order to review key reforms enacted after the 2008 financial crisis.
The announcement was the first step towards scaling back toughened regulations on the banking industry, with Trump having promised to cut red tape in a bid to help fire the world’s top economy further.
In Japan Mitsubishi UFJ Financial Group rallied more than four percent, HSBC jumped one percent in Hong Kong and Sydney-listed National Australia Bank also put on more than one percent.
On currency markets the dollar continues to face pressure on concerns about Trump, while the soft growth in wages overshadowed the upbeat jobs reading and analysts warned it could fall further.
Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said: “If the US dollar is at risk of a break lower that means the yen, the euro, the Australian dollar, and of course the Mexican peso which has surged recently, could all surge.”
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.3 percent at 18,974.07 (break)
Hong Kong – Hang Seng: UP 0.7 percent at 23,284.51
Shanghai – Composite: UP 0.2 at 3,147.45
Euro/dollar: UP at $1.0785 from $1.0782
Pound/dollar: UP at $1.2495 from $1.2482
Dollar/yen: DOWN at 112.30 yen from 112.61 yen
Oil – West Texas Intermediate: UP six cents at $53.89 per barrel
Oil – Brent North Sea: UP eight cents at $56.89
New York – Dow: UP 0.9 percent at 20,071.46 (close)
London – FTSE 100: UP 0.7 percent at 7,188.30 (close)
