Monday, November 8, 2010

STOCKS NEWS ASIA-Shares set for modest start after strong run

WELLINGTON: Asian stocks are set to make a steady start on Monday, Nov 8 after U.S. stocks notched modest gains despite some profit taking on stronger-than-expected jobs data.

The main Wall Street indexes rose between 0.1 and 0.4 percent, their fifth straight week of gains, but investors were seen booking profits after the strong run and starting to question how much longer the uptrend could continue. [.N]

A government jobs report suggested the sluggish recovery could be picking up steam. Non-farm payrolls rose a solid 151,000 in October, the first gain since May and more than double economists' expectations, which might bode well for future consumer spending.

Asian stocks listed on Wall Street <.BKAS> rose 0.47 percent.

British shares <.FTSE> rose 0.2 percent to their highest in 29 months on the back of strength in mining stocks and the U.S. jobs report, while European shares <.FTEU3> rose 0.4 percent.

The U.S. dollar strengthened on the jobs data, with analysts suggesting it could be at a turning point against the yen and euro but would likely remain weak against high-yield currencies.

Japanese stocks, which posted their best week in a year on the back of short-covering by foreign investors, are seen moving higher. Nikkei futures traded in Chicago <2NKc1> 60 points above the last closing level in Osaka .

Investors will be watching the outcome of the Bank of Japan's two-day meeting and for any possible yen-selling intervention by Japanese authorities to weaken their currency.

Analysts expect next targets for the Nikkei to stand around 9,700, a high hit last month, and then around 9,800, a July peak.

Australian shares are also seen tracking higher, with share index futures 18 points higher at 4,829, a 28.4 point premium to the underlying S&P/ASX 200 index <.AXJO>. - Reuters

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