Asia stocks up after US bank test; job report eyed
HONG KONG — Asian stock markets were modestly higher Friday as investors braced for a key U.S. jobs report that could bolster — or undercut — a growing belief that recession in the world’s largest economy is starting to ease.
Trade was back-and-forth early in the session, though, as many investors used the U.S. government’s long-awaited “stress test” report on leading banks as an excuse to take profits amid worries the recently rally may be overdone. Crude oil prices continued their march higher, while the dollar strengthened against the yen.
“The result of the stress test had been leaked out by the press several days in advance already, so it came at no surprise at all whatsoever,” said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. “But the market continued to go up for five days beforehand, so now it’s really time to consolidate.”
After opening lower, a number of markets regained their footing, helped by gains in the U.S. futures.
In Japan, the Nikkei 225 stock average rose 76.49 points, or 0.8 percent, to 9,462.19, lifted by banks such as Mitsubishi UFJ Financial Group., which surged more than 6 percent as the stress test results lifted uncertainty about U.S. lenders.
Hong Kong’s Hang Seng added 35.74 points, or 0.2 percent, to 17,253.63.
South Korean shares also climbed moderately, while benchmarks in Australia, India and Shanghai were flat.
A two-month surge in world markets gain paced over the last week as signs of a pulse in economies, industries an companies around the world continued to feed hopes of a year-end recovery.
Investors will be eyeing Friday’s U.S. jobs survey, regarded by Wall Street as the most important economic news each month, for any evidence that a rebound is at hand. A drop in unemployment would be good news for Asia and its export-driven economies, sensitive as they are to the spending moods of U.S. consumers.
Overnight in the U.S., stocks ended down ahead of the government announcement that its stress tests showed the banking sector was viable but still vulnerable, with ten of the nation’s largest financial firms needing to raise $75 billion more in case the recession deepened.
The Dow Jones industrial average fell 102.43, or 1.2 percent, to 8,409.85. The S&P 500 index fell 12.14, or 1.3 percent, to 907.39.
With U.S. futures higher, Wall Street was poised to rebound. Dow futures were up 53 points, or 0.6 percent, to 8,440.
Oil prices rose, with benchmark crude for June delivery up 53 cents to $57.24. On Thursday, the contract rose as high as $58.57 a barrel, a six-month high, before settling up 32 cents at $56.47
In currencies, the dollar gained to 99.29 yen from 99.09 yen. The euro was higher at $1.3408 from $1.390.
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