Asia report: Markets start week strong as steel plays surge
Markets in Asia started the week well on Monday, as investors reacted to a strong Friday on Wall Street after the latest nonfarm payrolls data beat the market’s expectations.
AUD/USD
$0.6531
22:24 28/04/24
GBP/NZD
NZD2.1025
23:53 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥157.9470
22:22 28/04/24
In Japan, the Nikkei 225 was up 1.65% at 21,824.03, as the yen strengthened 0.22% against the dollar to last trade at JPY 106.59.
Steel producers recovered in Japan after a miserable Friday, with the country's leading producer Nippon Steel and Sumitomo Metal adding 2.84%, while JFE Holdings was ahead 0.91%.
On the mainland, the Shanghai Composite added 0.58% to 3,326.33, and the smaller, technology-heavy Shenzhen Composite finished up 1.24% at 1,908.84.
South Korea’s Kospi was ahead 1% at 2,484.12, while the Hang Seng Index in Hong Kong surged 1.93% to settle at 31,594.33.
Manufacturers and technology plays were among the winners of the day in Seoul, although Samsung Electronics was flat.
Steel plays were also on the mend on the Korean peninsula, with Hyundai Steel and Posco ahead 2.35% and 2.32% respectively.
The positive movement in the region came after a surge on Wall Street on Friday, with all three major indices in New York recording gains of around 1.7%.
It came after fresh data showed the US economy added 313,000 jobs last month - well ahead of the 200,000 forecast in a Reuters poll.
Wage growth was still a concern, however, with pay packets rising 2.6% year-on-year for February, below the market’s expectations.
“Fears of four rate hikes from the Fed this year have receded while risk sentiment is back firmly in the ascendancy - for now at least,” noted National Australia Bank’s head of foreign exchange strategy Ray Attrill.
Oil prices were lower towards the end of the Asian day, with Brent crude last down 0.91% at $64.90 per barrel and West Texas Intermediate off 0.91% at $61.48.
In Australia, the S&P/ASX 200 finished 0.55% above the waterline at 5,996.10, led higher by the energy and materials subindices, which were up 1.58% and 1.15% respectively.
Gold producers underperformed, however, with the sector sliding 1.88% by end-of-play in Sydney.
Steel producers were on the up in the sunburnt country, after a tweet from US president Donald Trump on Friday suggested his administration was working with Australian prime minister Malcolm Turnbull to ensure the country would not be subject to Trump’s proposed punitive tariffs on steel and aluminium.
Bluescope Steel ended the session up 3.46%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.7% higher at 8,452.08, led higher by A2 Milk, which surged 4.7%.
Local analysts said Monday’s rise was on the back of market chatter suggesting the infant food and dairy products exporter could be included on an MSCI index in the future.
Both of the down under dollars were stronger on the greenback, with the Aussie ahead 0.22% at AUD 1.2715 and the Kiwi advancing 0.23% to NZD 1.3697.