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Tuesday, May 10, 2016, Baishakh 27, 1423 BS, Shaban 2, 1437 Hijri

Asia stocks weaker after soft US jobs, China trade data
Published :Tuesday, 10 May, 2016,  Time : 12:00 AM  View Count : 22

TOKYO, May 9: Asian stocks were mostly lower on Monday after a disappointing US jobs report and worse-than-expected trade numbers out of China raised questions about the underlying strength of the world's biggest economies.
Meanwhile, crude oil prices soared on supply woes stemming from devastating wildfires in Canada, and the dollar edged up against its peers.
Spreadbetters expected European shares to shrug off the weak Chinese data, picking a higher open for Britain's FTSE .FTSE, Germany's DAX .GDAXI and France's CAC .FCHI following Friday's rise on Wall Street.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS stood effectively flat. South Korea's Kospi .KS11 fell 0.6 per cent and Shanghai stocks .SSEC retreated more than 2 per cent after data released over the weekend showed Chinese exports and imports fell more than expected in April.
Elsewhere, Malaysian, Indonesian and Thai share markets also lost ground.
Japan's Nikkei .N225 bucked the trend and rose 0.6 per cent as the yen's recent surge appeared to halt for now.
"The dollar has rebounded against Asian currencies in May, and Asian stock markets are slipping in correlation with their respective currencies," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
The South Korean won KRW=, Indonesian rupiah IDR= and Malaysian ringgit MYR= have fallen to six-week troughs against the dollar over the past few days.
US shares posted modest gains on Friday as the weaker-than-expected US jobs report fanned expectations that the Federal Reserve would have to hike interest rates at a very slow pace. The Dow gained 0.4 per cent .DJI and the S&P 500 .SPX edged up 0.3 per cent on Friday.
US non-farm payrolls increased by 160,000 in April, the smallest gain since September, and below the 200,000 economists had expected. It prompted some financial institutions to lower their expectations of an interest rate hike for this year to just one from two before the report.
The dollar was up 0.2 per cent at 107.29 yen JPY=. The US currency initially fell in reaction to the lackluster jobs report on Friday but bounced after New York Federal Reserve President William Dudley said two rate hikes this year were still a "reasonable expectation".
The dollar remained within reach of an 18-month low of 105.55 yen plumbed last week. The euro was flat at $1.1408 EUR= after touching $1.1380, its lowest since April 29. The dollar index .DXY brushed 94.056, its highest since April 28.
The Australian dollar was little changed at $0.7373 AUD=D4 after sliding more than 1 per cent on Friday after the country's central bank slashed its inflation forecasts.
US crude CLc1 was up 1.9 per cent at $45.51 a barrel and Brent crude LCOc1 rose 1.4 per cent to $46.02 a barrel as a wildfire raged through Canada's oil sands region, shutting half of the country's vast oil sands capacity.     ?Reuters

Editor : Iqbal Sobhan Chowdhury
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