HONG KONG, Oct 8 (Businesshala) – Asian stocks rose on Friday, as Chinese stocks tracked a global rally after a week-long holiday, while investors looked for any new insights into the timing of the Federal Reserve tapering. Keys were also eyeing US jobs data.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.5%, after gaining 2.1% a day earlier, its biggest daily gain since August. Japan’s Nikkei index (.N225) rose 1.8%.
Chinese blue chips (.CSI300) gained 0.56% when trading resumed after closing for the National Day holiday, while Hong Kong (.HSI), which remained open throughout the week, rose 1%.
Elsewhere, Australian shares (.AXJO) were up 0.84%, helped by mining stocks amid a rise in commodity prices.
Over the past three months, Chinese stocks have been battered by regulatory changes, turmoil in the property sector and the recent power outage, but some investors are now seeing a buying opportunity.
Harald van der Linde, head of the Asia Pacific region, said, “The debate on China is moving a little away from being too negative. People are asking ‘Is there any way out of regulatory uncertainty? How much of that is reflected in prices? ” Equity Strategy at HSBC.
“We’re neutral, we tell people not to be too negative because valuations are low.”
The focus remains on the property market as investors wait to see if regulators take action to prevent a transition from the debt problems of cash-strapped China Evergrande Group (3333.HK).
US futures rose 0.16% after the US Senate approved legislation to temporarily increase the federal government’s $28.4 trillion debt limit and avoid the risk of a historic default later this month.
Overnight on Wall Street, the Dow Jones Industrial Average (.DJI) gained 0.98%, the S&P 500 (.SPX) 0.83% and the Nasdaq Composite (.IXIC) gained 1.05%.
Investors are also eyeing US employment data for September due later on Friday. They expect employment figures that are closer to consensus will lead the Federal Reserve to indicate at its November meeting when it will begin to ease its massive stimulus program.
US Treasury yields rose ahead of those figures, with volatility at the shortest end of the curve, emerging as a default avoidance plan on government debt.
In Asian hours, the benchmark 10-year US Treasury yield rose 1.6 basis points to 1.58887%, the highest since June at 1.594%.
In currency markets, the dollar index, which measures the greenback against a basket of its peers, was little changed at 94.206, not far from the 12-month high it hit at 94.504 at the end of September, as traders looked at jobs data. Was waiting for
Analysts at CBA said it’s possible that the jobs figures could surprise investors by falling short of expectations, but “we think this will be a huge omission, as we are hoping to prevent. [Federal Reserve] From the announcement of a taper in November.”
“A strong payroll print could support the USD as it would indicate an imminent … taper.”
Oil prices continued to fluctuate. Brent crude rose 0.6% to $82.44 a barrel, while US crude rose 0.78% to $78.90 a barrel.