Asian stock markets saw an increase in share prices this morning, thanks to data indicating the stabilization of the world’s largest economies, the United States and China.
On the Tokyo Stock Exchange, the Nikkei index was up 1.2 percent at 7:30 AM, while share prices in Australia, Singapore, South Korea, Hong Kong, and Shanghai rose between 0.1 and 1.7 percent.
The MSCI index of Asia-Pacific stocks, excluding Japan, was up 0.6 percent at 7:30 AM, close to its highest levels in two weeks.
Investors remain impressed by yesterday’s data indicating the stabilization of Chinese economic activity after a prolonged period of slowdown.
They were also encouraged by data from the ADP employment agency regarding the increase in new jobs in the U.S. private sector, as well as the rise in consumer confidence in the U.S.
– Thanks to developments in the U.S. and China, it seems that global business conditions are improving, which positively affects investor sentiment as the risk of falling stock prices decreases – says Toru Yamamoto, a strategist at Daiwa Securities.
However, he adds that the direction of the market largely depends on the employment data in the U.S., which will be released in the afternoon.
In a Reuters survey, analysts expect that in October, the number of employed increased by 125,000, about 10,000 more than in September, but that the unemployment rate rose from 7.8 to 7.9 percent.
This data could also impact the presidential elections in the U.S. next week. If the data is good, it would be a boost for President Barack Obama, while if it is bad, it would increase the chances for Republican candidate Mitt Romney. Meanwhile, the dollar has strengthened in the currency markets following positive data from the U.S. economy.
The euro exchange rate was around 1.2930 dollars yesterday at this time, but has slipped below the 1.29 dollar level this morning.
Against the Japanese currency, the dollar price rose 0.2 percent this morning to 80.29 yen, close to the highest level in four months of 80.38 yen reached last week. The euro exchange rate against the Japanese currency remains stable around 103.50 yen.
After rising by about 90 cents yesterday, the futures price of oil on the New York exchange weakened by about 30 cents this morning to 86.80 dollars per barrel.
