ASIA MARKETS-Japan stocks up but others mixed; US data eyed
Reuters, 06.06.03, 2:35 AM ET
(Adds close in Japan and other markets, updates prices)
By Raju Gopalakrishnan
SINGAPORE, June 6 (Reuters) - Japanese shares surged to their highest levels in months on Friday, but the rally in most other Asian stock markets lost steam as investors awaited more clues on the U.S. economic recovery story.
The euro remained firm against the dollar at about $1.1845 <EUR=> after ticking up in the aftermath of Thursday's widely anticipated half-point interest rate cut by the European Central Bank.
Gold prices slipped after surging on Thursday on the strength of the euro, and oil futures were firm after rising on more talk of OPEC supply cuts.
After a week of the best gains seen this year, most Asian stock markets sobered as profits were cashed in ahead of the weekend and U.S. jobs data later in the day.
The keenly awaited indicator should provide clues on the timing and strength of the recovery in the world's biggest economy.
But Japanese shares did not pause. The Nikkei average <.N225> ended 1.49 percent up at 8,785.87 points, the highest close since January 23, as steel and chemical shares caught up with the earlier rally led by tech and auto stocks. The broad TOPIX index hit a six-month high.
"The high level of market energy, reflected in a rise in trading volume, is having a positive impact on investors," said Yusuke Sakai, manager of equities at Mizuho Securities.
"If the buying focus returns to high-tech issues, that would easily prop up the Nikkei average above 8,800."
Markets in Australia <.AXJO>, Singapore <.STI>, Hong Kong <.HSI> and Taiwan <.TWII> were little changed. Indian shares <.BSESN> were up 0.87 percent after the onset of the much-awaited annual monsoon. South Korea <.KS11> was closed for a holiday.
JOBS OUTLOOK CLOUDY
The United States is to announce the May jobs report later on Friday and analysts expect unemployment in the month to have risen to 6.1 percent from April's 6.0 percent.
But sizable statistical revisions and uncertainty about how quickly the recent rebound in confidence will induce firms to begin hiring again have left many in the market not knowing what to expect.
On Thursday, the U.S. government said applicants for initial jobless benefits rose last week to 442,000, the highest level in more than a month.
Economists had forecast 420,000 new jobless claims and the weekly figure raised some anxiety before the monthly report.
To offset the gloom, an upbeat sales forecast by Intel Corp (nasdaq: INTC - news - people) offered cheer to technology companies in Asia. Intel is the world's largest semiconductor manufacturer and its forecasts are widely viewed as an indicator of demand in the PC industry.
In its report issued after Wall Street closed on Thursday, Intel narrowed its revenue forecast but said sales of its microprocessors, chipsets and motherboards, which account for more than 80 percent of total revenue and are included in most personal computers, were "trending to the high end of the normal seasonal patterns".
In the currency markets, the dollar crept lower against the yen, but quickly moved back to about 117.85 <JPY=> by 0615 GMT from 117.30 yen as intervention fears resurfaced.
AUSTRALIAN DOLLAR STRONG
The Australian dollar <AUD=> broke above 67 U.S. cents for the first time since July 1999 after the Reserve Bank of Australia governor said the local currency's rally had not been excessive. But it fell back after Governor Ian Macfarlane said he could cut rates if the world economy did not improve.
U.S. Treasuries firmed slightly in Asia after slipping overnight ahead of the jobs report. The benchmark 10-year note <US10YT=RR> was last at 102-21/32 for a yield of 3.31 percent, down from 3.34 percent in late New York trade.
Spot gold <XAU=> was weaker as the euro came off its highs, inching down in Asian trade to about $366.90 per ounce from about $368.75 in late New York.
Front-end NYMEX oil futures