Today Asian stocks performed better after Wall Street snapped a five-day losing streak yesterday. However, there is no respite for Japan as it lagged in the red as a weak inflation reading kept buyers at bay. In a better trading day, Australia’s S&P/ASX 200 was a standout and traded 0.2% higher after touching a new five-year high.
According to market analysts this is a signs of economic stabilization in China which also happens to be Australia’s largest trading partner. It has spurred a strong quarter for the Australian market and enabled it to become one of Asia’s best performers with a 10% increase so far. This is something good for the newly elected government in Australia which is facing a huge challenge to tackle unemployment.
Amidst the estimates that U.S. jobless claims data are pointing to an improving labor market, Asian shares ticked up on Friday. However, as there is a lack of progress in budget and debt negotiations in Washington, investors are on edge. According to market observers the solid jobs data revived expectations of a reduction in U.S. monetary stimulus.
The U.S. jobless claims data is positive and is expected to encourage investors. However, according to some market analysts investors need further evidence of a U.S. economic recovery. In today’s trade MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.1 percent; thus, Japan is still not doing better.
On the other hand, Australian shares are scaling a five-year high; particularly, stocks in the energy and consumer goods sector are faring better. Though the U.S. employment data may have some influence on Australian stocks, some experts believe that there appeared to be no major driver behind the gains as some stocks had posted almost inexplicable rises.
For instance, David Jones rose 14 cents, or 4.9 per cent, to $2.99, though the same store reported a six percent fall in its annual net profit to $95.2 million. Similarly, another retailer Myer went up two cents at $2.67 and JB Hi-Fi up 14 cents at $20.92.
Like retailers, energy stocks rose despite several days of oil price falls. This according to traders happened due to speculations on a bounce in the oil price which is falling drastically. Whereas Oil Search added 29 cents to $8.79, Santos gained 23 cents to $15.33.
Similarly, Woodside was 25 cents higher at $38.85, BHP Billiton improved 13 cents to $36.00 and Rio Tinto gained 31 cents to $62.41.
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