Asian shares hover around two-month peak ahead of US employment data

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Asian shares hover around two-month peak ahead of US employment data

On Friday, the 5th of July, a gauge of Asian share had been extending gains and anchoring near their two-month peak over optimisms of a riant US employment figures, which would likely to ease some concerns of sluggish growth and might intervene an aggressive policy easing by US Central Bank, which during June FOMC minutes had been quoted saying that next policy measures would depend on economic data and geo-political factors.

Ahead of a US non-farm payroll report, which held tremendous significance following a bunch of calamitous financial data last week from world’s second-, third- and eleventh-largest economy, China, Japan and South Korea respectively, global trade volumes were expected to remain thinner.

However, while this report was being prepared, during late Asian trading hours, MSCI’s broadest index of Asia-Pacific shares outside Japan had been well on-route to post its fifth straight week of gains. Quoting statistics, on Friday’s (July 5th) market closure, Japan’s Nikkei 225 was up by 0.20 percent to 21,746.38 and Hong Kong’s Hang Seng was down by 0.11 percent, while Mainland Shanghai wrapped up the day mixed with its blue-chips adding about 0.2 percent.

Meanwhile, during midday trading hours, Bombay stock exchange remained flatlined to 39,903.87, and ASX 200 and New Zealand had winded down the day slightly higher. Nonetheless, adding that the market has been eyeing US non-farm payroll report with caution amid lavishly languished financial data across the globe, a London-based market strategist at National Australia Bank, Tapas Strickland said, “If payrolls were not to rebound this would be very significant.

A better-than-expected print would likely see markets pare expectations of a July rate cut, though given the deterioration in other domestic data as well as international PMIs, a July rate cut of 25 basis points remains highly likely”.