Two trends about Asia markets’ performance around the latest US Jobs data

Leave a comment
Australian Economy, Chinese Economy, Uncategorized

Asian markets delivered a subdued performance ahead of US Jobs data: Janet Yellen, the Chair of the Federal Reserve had few days ago indicated about a possible interest rate hike that could be on the cards this year. Given this view, Asian markets traded mixed last week ahead of the US jobs data release. Nikkei 225 (INDEXNIKKEI:NI225) increased over 3.5% last week (from August 29, 2016 till September 02 2016). SSE Composite Index (SHA:000001) slightly fell over 0.1% last week while FTSE 100 (INDEXFTSE: UKX) rose about 0.8%. Australia’s S&P/ASX 200 performed the worst on September 02, 2016 in the Asian market. On the same day, Gold was also flat at $1,314.20 an ounce while Brent crude was up 0.9% at $45.87 a barrel and West Texas Intermediate was 1% higher at $43.58.

aaa1.png

S&P AUST INDEX ASX 200 INDEX XJO (Source: Financial Times)

Lower than estimated jobs data performance drove the Asian markets: The labor market data was not as expected wherein nonfarm payrolls came out lower-than-expected to 151,000 rise in August (against the consensus forecast rise of 180,000) with revisions to July and June at a net minus 1,000. This was way below the downwardly revised 271,000 increase of July. Nonetheless, the unemployment rate remained steady at 4.9% while earnings rose only 0.1% in the August month for a year-on-year plus 2.4% which is down a sizable 3 tenths from July. Even goods producing payrolls fell on the back of weakness in mining, construction and manufacturing. As a result, Asian markets rose post this data on hopes of change in interest rate related decision by federal reserve on the back of weak jobs data. FTSE 100 (INDEXFTSE: UKX) rose over 2.09% from September 02, 2016 till September 08, 2016. Nikkei 225 (INDEXNIKKEI: NI225) rose over 0.33% from September 02 till September 08, 2016 while SSE Composite Index (SHA:000001) rose over 1.07% during the same period.

kunalsa1 (1)



Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s