Asian shares mostly higher thanks to bullish US jobs and growth data
BANGKOK – Asian stocks rose on Friday, fueled by encouraging signs that the US economic recovery from the pandemic is gaining momentum.
President Joe Biden’s proposal fo A budget of ra $ 6 trillion also stimulated the purchase of stocks that could benefit from significant government spending.
Tokyo’s Nikkei 225 index climbed 2.1% and other regional benchmarks were all higher.
Shares in the logistics arm of Chinese e-commerce giant JD.com Inc. rose 4.3% on their first day of trading in Hong Kong after raising HK $ 24 billion (HK $ 3.1 billion). billion dollars) by selling part of the unit to outside investors.
JD Logistics Inc. is the latest technology company to be listed in the semi-autonomous Chinese city as Beijing intensifies its control Of the industry. Its IPO was the second-largest in the market this year after short video company Kuaishou raised $ 5.3 billion.
The markets were carried by mainly positive reports. The number of Americans who applied unemployment benefits once again fell to a pandemic low of 406,000 people.
Although the Commerce Department said durable goods sales fell 1.3%, it also released updated data showing that the U.S. economy has grown at a steady pace. 6.4% annual rate in the first trimester, when an increasing number of people were vaccinated, which allowed the economy to return to normal activity.
“The optimism around US economic data is boosting the recovery theme and could potentially spur some catch-up growth in the Asian indices, given they are lagging behind,” IG’s Jun Rong Yeap said in a commentary. .
Tokyo added 600 points to 29,149.41 while the Hang Seng in Hong Kong advanced to 29,123.51. In Seoul, the Kospi jumped 0.7% to 3,188.73. The Shanghai Composite Index lost 0.4% to 3,595.41 and the Sydney S & P / ASX 200 added 1.2% to 7,179.50.
On Thursday, the S&P 500 rose 0.1% to 4,200.88. He was on track for a gain this week of around 1%. It hit an all-time high on May 7, but then fell for two straight weeks.
Industrials and financials were among the biggest winners. General Electric jumped 7.1% for the S&P 500’s biggest gain, while Boeing rose 3.9% and JPMorgan Chase added 1.6%. These gains were largely tempered by the slide in tech companies. Manufacturers of health products and household items have also fallen behind in the market in general. Treasury yields and energy prices rose.
The Dow Jones Industrial Average gained 0.4% to 34,464.64. Falling tech stocks left the Nasdaq mostly flat. It slipped less than 0.1% to 13,736.28.
In another signal that investors were confident about the future of the economy, the Russell 2000 index of smaller stocks outperformed the market in general, rising 1.1% to 2,273.07 .
Online medical scrubs seller Figs jumped 36.5% on its stock market debut, valuing the 8-year-old company at $ 4.8 billion.
As they monitor inflation, investors anxiously await Friday’s release of the Commerce Department’s personal consumption expenditure index, more commonly known as PCE. The Federal Reserve, whose job it is to monitor and control inflation to the extent possible, relies more on PCE data than the better-known Consumer Price Index, or CPI, to make decisions policies.
Analysts said they believed the price increases were mainly due to the rebound in the crisis caused by the pandemic. Should they persist, worry is that the Fed will tighten its policy and raise interest rates to try to cool it down.
Bond yields rose this week. The 10-year US Treasury note was trading at a yield of 1.62% on Friday, compared to 1.57% on Wednesday. But it has stayed around that level for the past two weeks.
In other trades, US benchmark crude oil gained 3 cents to $ 66.88 per barrel on electronic trading on the New York Mercantile Exchange. It picked up 64 cents to $ 66.85 on Thursday. Brent, the international price standard, fell 6 cents to $ 69.14 a barrel.
The dollar rose to 109.91 Japanese yen from 109.83 yen on Thursday night. The euro slipped to $ 1.2176 from $ 1.2196.
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