Monday, February 7, 2011

Asian markets may edge higher on U.S. jobs data, earnings eyed

WELLINGTON: Asian stocks may start higher on Monday, Feb 7 tapping into a positive economic mood as the focus turns to corporate activity and earnings this week.

The main Wall Street indices added between 0.3 percent and 0.6 percent on Friday as investors took a mixed U.S. non-farm payrolls report as generally backing the view that the economy is improving. The S&P 500 index posted its best week in nine.

The world's largest economy added fewer jobs than expected in January, although the unemployment rate fell.

The U.S. dollar and Treasury yields both gained on the closely-watched data, with the greenback seen likely to reverse some of the previous week's losses against the euro.

Investors are seen as showing more demand for consumer discretionary and TECHNOLOGY [] stocks and out of recent strong performers in energy and materials as the economic mood picks up.

In Egypt the government and opposition held talks on ending the political crisis as tensions remained high, although some signs of normality returned on Sunday as banks opened their doors for the first time in a week.

British and European shares both rose 0.2 percent, as the mixed U.S. jobs report kept investors on edge, with banks and CONSTRUCTION [] stocks leading the gains.

Asian stocks listed on Wall Street fell 0.3 percent.

The lunar new year holiday continues, with markets in China, Taiwan and Vietnam closed.

Japanese markets are set for a solid start, helped by a weaker yen, and hopes of further corporate activity in the wake of the planned merger between Nippon Steel Corp and Sumitomo Metal Industries

Nikkei futures traded in Chicago 110 points above the last closing level in Osaka.

Australian stocks are set for a flat start with share price index futures up 8 points to 4,852, a 10.7 point discount to the close of the underlying S&P/ASX 200 index. Profit warnings may weigh on sentiment but will be offset to a degree by mining stocks buoyed by strong metals prices. - Reuters


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