Asia stocks rise on oil price
Asian stock markets were mostly higher Friday as investors brushed aside a 30-month high in oil prices, turning their attention instead to a key U.S. jobs report and a weakening yen that boosted Japan’s quake-hammered exporters.
Tokyo’s Nikkei 225 stock average slipped 0.2 percent to 9,739.85 after a higher opening, as authorities sought French and U.S. expertise to regain control of a nuclear power station that has been leaking toxic radiation after being damaged in the March 11 earthquake and tsunami.
Still, Japan’s powerhouse export sector was helped by the lower yen. Shares in Canon Inc., rose 1.4 percent. Sony Corp., Sharp Corp., Panasonic Corp. and Toyota Motor Corp. also saw upticks.
The yen last month backed away from historic highs against the U.S. dollar thanks to a coordinated intervention in currency markets by the Group of Seven industrialized nations that was aimed at supporting Japan’s recovery from the natural disasters.
“The yen has continued to weaken, providing a boost for beaten up Japanese exporters,” IG Markets in Melbourne said in a report.
Hong Kong’s Hang Seng was 0.2 percent higher to 23,565.84 andSouth Korea’s Kospi added 0.3 percent to 2,113.95.
China’s Shanghai Composite Index gained 0.2 percent to 2,935.28 after a state-affiliated agency reported the country’s manufacturing regained momentum in March, easing fears of a sharp slowdown. China’s purchasing managers index, or PMI, rose to 53.4 last month, ending a three-month decline.
Traders were positioning themselves ahead of the March employment report from the U.S. Labor Department later Friday, anticipating that the jobs figure would come in higher than expected. The figures often set the stock market tone for a week or two and could have an even bigger impact this time as investors gauge when the Federal Reserve will begin raising interest rates.
“Markets are sensing an upside surprise this month,” DBS Bank Ltd. of Singapore said in a report. “Especially when it comes to labor markets, which lagged the rest of the economy for as long as they could and are now, finally, taking a bit of the stage.”
Meanwhile, Taiwan’s benchmark was marginally down at 8,675.91, after digesting the news that personal computer maker Acer Corp. had replaced top executive Gianfranco Lanci amid a fall in sales due to competition from tablets and other devices. Acer shares dropped 4.5 percent.
Benchmark crude for May delivery was up 31 cents at $107.03 a barrel in electronic trading on the New York Mercantile Exchange after settling at a 30-month high of $106.72 the day before. The gains came as fighters loyal to Moammar Gadhafi pushed back rebels from key areas in eastern Libya, dimming chances that the OPEC member’s crude exports will resume soon.
A sustained rise in the oil price is a risk for world economic growth as it would force increases in the cost of gasoline, food and other necessities, reducing people’s discretionary spending. But it was good for oil-related stocks like Inpex Corp., Japan’s biggest energy explorer, which rose 4.3 percent.
The Dow Jones industrial average fell 30.88 points, or 0.3 percent, to 12,319.73 on Thursday. That’s just 72 points shy of its Feb. 18 high for the year. The Standard & Poor’s 500 fell 2.43, or 0.2 percent, to 1,325.83. The Nasdaq composite rose 4.28, or 0.2 percent, to 2,781.07.
In currencies, the euro rose to $1.4173 from $1.4157. The dollar rose to 83.61 yen from 83.07 late Thursday in New York.
Source: AP