International Development News
Development News Edition

GLOBAL MARKETS-Asian shares cheered by U.S. jobs data but traders fear trade talks

GLOBAL MARKETS-Asian shares cheered by U.S. jobs data but traders fear trade talks
Image Credit: StoryBlocks

Asian shares edged higher on Monday after data showed the U.S. unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world's largest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.16%. Australian shares were up 0.63%. Japan's Nikkei stock index opened higher but reversed course and fell 0.2%. The pan-region Euro Stoxx 50 futures were up 0.2% at 3,435, German DAX futures were up 0.18%, while FTSE futures were down 0.03%.

U.S. stock futures, fell 0.39% in Asia on Monday after the S&P 500 surged 1.4% on Friday. The offshore yuan fell around 0.3% to 7.1337 to the dollar after Bloomberg reported that Chinese officials are signaling they are increasingly reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump.

There was no onshore yuan trading, as Monday is the last day of a long China holiday for its national day. The media report also pushed up safe-haven assets such as gold and the yen.

Crude oil futures pared losses to trade little changed amid caution about a resolution to the trade dispute. Sentiment toward the U.S. economy deteriorated sharply much of last week after disappointing data on manufacturing and services suggested the trade war was taking a toll, and more rate cuts would be needed to avert a potential recession in the world's biggest economy.

But a modest September increase in U.S. jobs, announced on Friday, eased some of these concerns and lifted U.S. markets that day. The U.S. unemployment rate fell to 3.5% in September to reach the lowest since December 1969. Non-farm payrolls also grew in September, but slightly less than expected. "Moderate job growth and subdued inflation in the United States is a positive for stocks," said Shusuke Yamada, head of FX and Japan equity strategy at Merrill Lynch Japan Securities in Tokyo.

This week, the main focus will be the high-level U.S.-China trade negotiations expected in Washington on Oct. 10-11 to see if the two sides can end a bruising year-long trade war that has hurt global growth and raised the risk of recession. "The dollar is a little soft heading into U.S.-China trade talks," said Yamada. "I see some scope for yen gains, but it is not likely to be a big move higher."

The United States and China have slapped tariffs on each other's goods as part of a long-running dispute over Beijing's trading practices, which Washington says are unfair. Central banks around the world have been easing policy to try to offset the impact of the trade war.

The Federal Reserve has lowered interest rates twice this year. Before the jobs report, traders saw an 85.2% chance the Fed will cut rates by 25 basis points to 1.75%-2.00% this month, but that chance has now fallen to 81.1%, according to CME Group's FedWatch tool. The yield on benchmark 10-year Treasury notes rose to 1.5272% on Monday compared with its U.S. close of 1.5140% on Friday.

Spot gold, an asset often bought during times of uncertainty, rose 0.05% to $1,505.11 per ounce. The yen also considered a safe-haven asset, edged slightly higher to 106.85 versus the U.S. dollar and gained to 72.12 per Australian dollar.

U.S. crude was flat at $52.81 a barrel. Brent crude fell 0.15% to $58.28 per barrel. In addition to worries about the global economy, signs of oversupply in the oil market are weighing on futures prices. Political instability in Hong Kong could hurt market sentiment after China's army took the unusual step of issuing warnings to anti-government protesters in Hong Kong over the weekend.

Hong Kong's stock market is closed on Monday for a public holiday. Trading will resume on Tuesday. Four months of often violent protests against Chinese rule has pushed the former British colony to the brink of recession and posed a serious challenge to Beijing's control of the city.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



EdTech: A technical approach to flexible and cost-effective education

Its hight time for the world to go for innovative approaches like e-learning over traditional learning methods that need physical infrastructure, long-term planning, and huge investment. ...

'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....


Latest News

100 protesters still holed up in Hong Kong university

Hong Kong, Nov 19 AP About 100 anti-government protesters remained holed up at a Hong Kong university Tuesday as a police siege of the campus entered its third day. City leader Carrie Lam said 600 people had left the Hong Kong Polytechnic c...

Soccer-Euro 2020 likely to decide my future, says Southgate

Gareth Southgate says Englands performance at the European Championship next year is likely to determine whether or not he is in charge at the 2022 World Cup. That will depend very much on how we get on next summer, said Southgate, who will...

Moana NZ supports WWF and Māui63 to protect 63 Māui dolphins

Moana New Zealand, Aotearoas largest Mori-owned seafood company, is throwing its support behind the initiative announced yesterday by WWF-New Zealand and MUI63, to utilize cutting edge drone technology to protect the last remaining 63 Mui d...

UPDATE 1-Trump was not treated for any urgent health issues in Saturday's exam -physician

U.S. President Donald Trumps health examination on Saturday was routine and he was not treated for any urgent or acute issues, his physician said in a statement on Monday.Trumps unexpected trip to Walter Reed National Military Medical Cente...

Give Feedback