Asian Stocks Hover at 3-Yr High, U.S. Jobs Data Enthrall
Bareksa • 03 Jul 2014
A pedestrian is reflected on an electronic board showing the graph of the recent fluctuations of Japan's Nikkei average outside a brokerage in Tokyo. (REUTERS/Yuya Shino)
Focus also on ECB meeting, possible euro comments.
Bareksa.com - Asian stocks hovered at a three-year high and the dollar rose early on Thursday after robust jobs data fuelled hopes that the U.S. nonfarm payrolls report would point to momentum building in the economy.
MSCI's broadest index of Asia-Pacific shares outside Japan stood little changed at 499.88, within a short distance of a three-year peak of 500.26 reached the previous day.
Tokyo's Nikkei gained 0.4 percent, buoyed by the weaker yen.
Asian equities received an early lift after the Dow and the S&P 500 closed overnight at record highs for a second straight day following data from payrolls processor ADP showing U.S. private-sector hiring hit a 1-1/2-year high in June.
The upbeat ADP report heightened expectations that the all-important June U.S. nonfarm payrolls due at 1230 GMT would show the American economy gathering momentum after a dismal start to the year.
"The market is expecting to see another print north of 200,000 and no doubt sentiment will be riding high following this ADP reading," Stan Shamu, market strategist at IG in Melbourne, wrote in a note to clients.
A Reuters poll forecast non-farm payroll gains of 212,000. The data will be released on Thursday because U.S. markets close for Independence Day on Friday, the day the report is usually released.
Investors are keeping an eye on the European Central Bank meeting later on Thursday. Market participants do not expect the ECB to do much after it launched a number of monetary easing measures last month.
The focus was on whether the ECB mentions quantitative easing or verbally warns against the strength of the euro, which has crawled higher against the dollar despite last month's easing.
The dollar inched up to 101.77 yen after gaining more than 0.2 percent overnight, helped after the benchmark U.S. Treasury yield rose to a 1-1/2 week high on the strong ADP report.
The euro stood little-changed at $1.3656 after shedding 0.15 percent overnight.
The Australian dollar fell 0.1 percent to $0.9435, still on shaky ground after being knocked down from an eight-month peak the previous day on disappointing trade data.
Crude oil extended losses after falling the previous day on encouraging signs of supply from Libya and Iraq.
U.S. light crude fell 0.4 percent to $104.09 per barrel. (Source : Reuters)