Asian Stocks Rise On Positive U.S. Job Data

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Asian Stocks Rise On Positive U.S. Job Data

Stock markets across Asia registered gains on Monday and favorable U.S. labor data released last Friday could be behind the moves. Asian investors also appear to be growing more hopeful that central banks in the region will roll out yet more stimulus measures to counter the economic volatility created by the Brexit vote.

On Friday, the U.S. labor department reported that some 287,000 jobs were created in June, which was significantly higher than economists had predicted for the month. The jobs data showed a big recovery in the labor market considering the weaker labor data reported for May.

In Japan, the Nikkei 225 (INDEXNIKKEI:NI225) was up 4% at close on Monday relative to Friday’s closing, thus registering its largest daily gain in three months. Finance, investment and banking sectors led the gain in Asian shares.

Although favorable U.S. job data played a role in lifting Japanese shares, the landslide victory of Prime Minister, Shinzo Abe’s coalition in the upper house election also boosted investor confidence of speedy rollout of stimulus packages by Japan’s central bank, as Abe is big on stimulus.

In the currency market, USDJPY rose 1.31% to 101.91 while EURJPY jumped 1.25%.

In Taiwan stocks, Communication, internet, semiconductor and electronics fueled the gains in stocks. At close, the Taiwan Weighted was up 1.7%, thus reaching a new three-month high.

Chinese stocks also continued higher with the Shanghai Composite up 0.23% and Hong Kong’s Hang Seng (INDEXHANGSENG:HSI) up more than 1.5%.

Australian stocks post gains

In Australia, the S&P/ASX 200 rose 1.9% to reach a new one-month high. Gains in the Australian stocks were led by Resources, Metal & Mining and Materials sectors.

In the forex market, AUDUSD declined 0.17% to 0.7559 and AUDJPY jumped 0.76%.

European shares open higher

In Europe, stocks opened higher as the Bank of England prepared for interest rate cuts despite the falling pound to spur growth after Britain decided to withdraw from the European Union. The EURO STOXX 50 was seen up 1.4% in the morning and France’s CAC 40 was advancing 1.5% in the morning. Germany’s DAX 30 had also popped up 1.7% in early morning trading.