header banner

Asian shares broadly higher after Wall Street rally

alt=
By No Author
HONG KONG, Sept 27:Asian markets mostly rose on Friday following a bounce on Wall Street that was fuelled by better-than-forecast US jobs data.



However, trading is tentative as US lawmakers remain unable to reach agreement over a budget just days before a deadline kicks in that could see parts of the federal government shut down. [break]



Tokyo fell 0.26 percent, or 39.05 points, to 14,760.07 but Hong Kong rose 0.35 percent, or 82.01 points, to 23,207.04.



Sydney added 0.24 percent, or 12.6 points, to 5,307.1, while Seoul closed 0.22 percent higher, adding 4.48 points to 2,011.80. Shanghai rose 0.20 percent, or 4.29 points, to 2,160.03.



On Wall Street Thursday the Dow and S&P enjoyed their first rises since September 19, when they hit fresh record highs.



US investors were cheered by data from the Labor Department showing new claims for unemployment benefits sank by 5,000 to 305,000 last week, beating forecasts of a rise to 325,000.



And while pending home sales fell 1.6 percent last month, it was better than the 2.3 percent fall expected.



The Dow advanced 0.36 percent, the S&P 500 tacked on 0.35 percent and the Nasdaq was 0.70 percent higher.



The gains came despite growing tensions on Capitol Hill, where Republicans and Democrats are locked in yet another stand-off over government funding as the Monday night deadline approaches.



With Democrats refusing to agree to Republican demands that President Barack Obama´s healthcare bill be cut back there are fears that hundreds of thousands of US state employees will be sent home from Tuesday.



More critical, though, is a looming row over the US debt ceiling, which must be raised before mid-October, when the government runs out of money to pay its bills.



If the spending limit is not hiked, Washington would be unable to service its debt obligations and in turn default. A similar stand-off in 2011 sent global markets sliding and led to a historic downgrade of the country´s AAA sovereign rating by Standard & Poor´s.



In currency trading the dollar bought 98.54 yen in afternoon Tokyo trade, compared with 98.94 yen late in New York. The euro was at $1.3500 from $1.3488, while it also fetched 133.02 yen against 133.48 yen.



Japanese shares had rallied Thursday on reports that the government was considering a cut to corporation tax to offset an expected hike in sales tax.



However, the Nikkei was unable to add to those gains Friday after Finance Minister Taro Aso threw into question a timeline for any business tax cuts, which he described as a "long-term issue".



Traders were unmoved by Japanese data showing inflation at a five-year high as most of the increase was driven by higher fuel bills. Energy imports soared in the wake of the Fukushima atomic disaster in 2011, forcing the shutdown of Japan´s nuclear reactors.



On oil markets New York´s main contract, West Texas Intermediate for delivery in November, dipped 58 cents to $102.45, while Brent North Sea crude for November was down 45 cents at $108.76.



Gold cost $1,324.60 at 1045 GMT compared with $1,335.92 on Thursday.



In other markets:



-- Wellington added 0.36 percent, or 17.21 points, to 4,782.68.



Air New Zealand was up 3.78 percent at NZ$1.51, Telecom rose 1.28 percent to NZ$2.37 and Warehouse was steady at NZ$3.77.



-- Taipei rose 0.56 percent, or 46.0 points, to 8,230.68.



Taiwan Semiconductor Manufacturing Co. rose 1.48 percent to Tw$103.0 while Hon Hai was 0.66 percent higher at Tw$76.3.



-- Manila fell 0.43 percent, or 27.65 points, to 6,379.81.



Alliance Global Group tumbled 2.15 percent to 25 pesos while Philippine Long Distance Telephone slipped 0.88 percent to 2,942 pesos.



-- Bangkok slipped 0.51 percent, or 7.27 points, to 1,417.49.



Coal producer Banpu lost 3.36 percent to 28.75 baht and PTT Plc shed 0.31 percent to 326.00 baht.



-- Singapore closed up 0.50 percent, or 15.87 points, at 3,210.18.



United Overseas Bank gained 0.14 percent to Sg$21.28 while oil rig maker Keppel Corp eased 0.66 percent to Sg$10.53.



-- Jakarta rose 0.40 percent, or 17.83 points, to 4,423.72.



Bank Negara Indonesia gained 1.18 percent to 4,275 rupiah, while miner Aneka Tambang fell 0.70 percent to 1,420 rupiah.



-- Kuala Lumpur gained 0.11 percent, or 2.00 points, to 1776.16.



Genting Malaysia ended 2.4 percent higher at 4.26 ringgit while UMW Holdings shed 3.5 percent to 12.16 ringgit.



-- Mumbai fell 0.84 percent, or 166.58 points, to 19,727.27.



United Spirits was up 6.51 percent at 2,620.65 rupees while pharma company Wockhardt was down 4.99 percent at 549.85 rupees.



Related story

Asia shares reap big gains following rebound on Wall Street

Related Stories
ECONOMY

Asian Hydropower's IPO opens for public

ipo_20210108082652.jpg
SOCIETY

Executive meeting held to popularize mini great wa...

1628916103_miniget-1200x560_20210814115357.jpg
SOCIETY

Mukundeshwori Wall, resembling Great Wall of China...

Mukundeshwori Wall, resembling Great Wall of China, being built in Bandipur
My City

NYC to hold first Asian American and Pacific Islan...

parade_20220512171346.jfif
ELECTION

US for peaceful, broadly supported elections

US29.jpg