Asian stocks track Wall St rally after US data

Asian markets rose Thursday, while the dollar strengthened further on growing
expectations the US will hike interest rates by the end of the year.
Another round of positive data out of Washington, this time on the key services sector,
reinforced views that the world's top economy is back on track and able to deal with the impact
of tighter borrowing costs.
"Data has been consistent with the Fed moving in December," Chris Green, the
Auckland-based director of economics and strategy at First NZ Capital Group, said.
"The Fed has a delicate balancing act," he told Bloomberg News. "They'd want to normalise
rates as the economy improves but at the same time they don't want to scare the financial
system."
Mitsushige Akino, an executive officer at Ichiyoshi Investment Management, added: "A
December hike will happen for sure."
US markets rallied Wednesday after the Institute for Supply Management said the services
sector expanded at its fastest rate in almost a year in September, rebounding from the previous
month's slump.
The prospects of US rates tightening within three months has rallied the dollar, which bought
103.71 yen in Tokyo -- slightly up from late in New York and sharply higher than the levels
below 103 yen earlier Thursday in Asia.
Japanese exporters welcomed the weaker yen, sending the Nikkei in Tokyo 0.5 percent higher
for its fourth-straight gain.
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Asian stocks track Wall St rally after US data
Written by Imaduddin
Thursday, 06 October 2016 13:39
Hong Kong added 0.7 percent -- marking a fourth-straight gain -- and Sydney closed 0.6
percent higher while Singapore gained 0.4 percent.
Seoul rose 0.6 percent, with market giant Samsung Electronics soaring to a record high as the
firm said it would review a proposal by US hedge fund Elliott Management to split it into two
companies.
Shanghai is closed for a week-long public holiday.
In early European trade London added 0.1 percent, while Paris and Frankfurt each rose 0.3
percent.
The greenback was also at three-decade highs against the pound, which has been hammered
this week after Prime Minister Theresa May set a timeline for Britain to exit the EU by 2019.
However, her comments suggesting she was not a fan of the Bank of England's loose monetary
policy of bond-buying provided some lift to sterling, which also managed to edged up against
the euro slightly -- though it is still at five-year lows.
The euro has also been given some lift by a report that the European Central Bank is
considering winding down its own stimulus programme.
On oil markets both main contracts dipped in Asian trade, having enjoyed a healthy pick-up
Wednesday on data showing a surprise drop in US inventories last week.
WTI and Brent each rose about a dollar on the news as the commodity sees some new life after
last week's OPEC agreement to cut production.
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Asian stocks track Wall St rally after US data
Written by Imaduddin
Thursday, 06 October 2016 13:39
Brent is now above the crucial $50 mark that makes drilling cost-effective for companies, while
WTI is also approaching the figure.
- Key figures at 0800 GMT -
===========================
Tokyo - Nikkei 225: UP 0.5 percent at 16,899.10 (close)
Hong Kong - Hang Seng: UP 0.7 percent at 23,952.50 (close)
Shanghai - Composite: Closed for holiday
London - FTSE 100: UP 0.1 percent to 7,039.76
Pound/dollar: DOWN at $1.2716 from $1.2750 Wednesday
Euro/pound: UP at 88.03 pence from 87.91 pence
Euro/dollar: DOWN at $1.1194 from $1.1208
Dollar/yen: UP at 103.71 yen from 103.53 yen
Oil - West Texas Intermediate (November): DOWN 40 cents at $49.43 per barrel
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Asian stocks track Wall St rally after US data

Source : AFP