Share

Asian markets tread water after US jobs rally

Hong Kong - Asian traders took a breather on Tuesday after the previous day's sharp gains but the dollar edged higher against the yen as the chances of a US interest rate hike this month diminish.

Markets remain largely upbeat after data on Friday showed a healthy increase in US jobs creation - indicating an improving economy - but not strong enough to justify lifting borrowing costs soon.

"Monetary policy is going to remain easy around the world and that will continue to be supportive of risk assets," James Woods, a strategist at Rivkin Securities in Sydney, told Bloomberg News.

"The non-farm payrolls last week indicate there's no rush for the Fed to raise rates."

The prospect of interest rate being kept low for the time being sent markets soaring on Monday but profit-taking dug into those gains in most markets in early trade on Tuesday.

Hong Kong dipped 0.1%, Shanghai and Sydney each shed 0.4%, while Seoul was flat.

But Tokyo rose 0.2% by the break as exporters were supported by the weaker yen. The dollar rose to ¥103.75 from ¥103.38 late on Monday.

On oil markets both main contracts were up after a volatile session on Monday as investors were left disappointed by a lack of action from Russia and OPEC kingpin Saudi Arabia on addressing a global supply glut.

Prices soared on Monday as news broke that the two were about to make a statement on the side lines of the G20 summit in China, with expectations they would announce a freeze.

But the commodity dipped after they issued a vague comment on the "importance of constructive dialogue".

Stephen Innes, senior trader at OANDA, said in a note: "When the Saudi oil minister stated there is no explicit agreement and further commented that there is nothing decided on output, with nothing forthcoming, in typical buy the rumour, sell the fact fashion, oil prices plummeted."

In early Asian trade West Texas Intermediate was up 1.8% at $45.24 and Brent added 0.04% to $47.65. With US markets closed on Monday for a holiday, electronic transactions on WTI will be booked with Tuesday's for settlement purposes.

Read Fin24's top stories trending on Twitter:
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.34
+0.0%
Rand - Yen
0.13
-0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders