Asia report: Markets ahead on strong US jobs report

Asian markets were led higher by Japan on Monday, as investors shrugged off weak trade data from China and reacted to a stronger-than-expected US jobs report on Friday.

Japan’s Nikkei 225 added 2.44% to close at 16,650.57, with the Topix rising 2% to 1,305.53.

The country’s stocks were also boosted by a weaker yen, which was last 0.56% behind the greenback at JPY 102.39 per $1.

Major exporters were boosted by the weaker yen, with Mazda Motor rising 5.7%, Nissan adding 2.6% and Toyota closing up 3.33%.

Shares in Mitsubishi Heavy were up 4.64% after it was reported that Iran was looking to purchase 20 regional jets from one of its business units.

It’s understood the deal will be finalised when a Japanese delegation visits Tehran at the end of the year.

Yields on Japanese government bonds rose again, with the benchmark 10-year bond moving to -0.048%.

On the mainland, the Shanghai Composite finished up 0.94% at 3,004.71, while the Shenzhen Composite advanced 1.06% at 1,962.26.

China’s exports and imports fell beyond expectations in dollar-denominated terms in July, with exports slipping 4.4% year-on-year and imports sliding 12.5%.

Analysts had picked declines of 3% and 7% respectively, according to a Reuters poll.

The country’s trade surplus for the month was $52.31bn.

“China is less reliant on external demand than it used to be and we still think the continued feed through from stronger credit growth will provide some further support to domestic demand during the rest of this year,” said Capital Economics China economist Julian Evans-Pritchard.

South Korea’s Kospi closed up 0.65% at 2,031.12, while the Hang Seng Index in Hong Kong was up 1.57% at 22,494.76.

Oil prices advanced during Asian hours, with Brent crude last up 1.07% at $44.75 per barrel and West Texas Intermediate adding 1.32% at $42.36.

Monday was the first chance for traders in Asia to react to Friday’s non-farm payrolls report out of the US, which showed the country added 255,000 jobs in July, well above economist expectations for a gain of 180,000.

“Hotter than forecast average workweek hours, hourly earnings and participation rate suggests this report was of genuine quality,” said IG chief market strategist Chris Weston.

Australia’s S&P/ASX 200 added 0.73% to 5,537.80, boosted by a 1.09% rise in the weighty financials subindex.

All of the major Australasian banks gained at least 1%, with National Australia Bank rising 1.43%.

Smaller player Bendigo and Adelaide Bank posted earnings during the session, with an after-tax profit of AUD 415.6m for the year to 30 June.

The company’s cash earnings were up 1.6% at AUD 439.3m, while shares in the bank closed up 4.32%.

Higher oil prices also boosted Oil Search by 1.93% and Woodside Petroleum, also rising 1.93%.

New Zealand’s benchmark S&P/NZX 50 rose 0.6% on Monday to 7,348.30.

It was led by premium sports and outdoor brand Kathmandu, which rose 4.3% during the session.

Last week, Kathmandu had indicated its annual profit was likely to be 67% higher on much wider margins.

The dual-listed Australasian banks also rose on the eastern side of the Tasman Sea, with Australia and New Zealand Banking Group rising 2.6% and Westpac Banking Group improving 1.8%.

It was a mixed purse of down under dollars on Monday, with the Aussie last 0.19% stronger than the greenback, at AUD 1.3100, while the Kiwi weakened 0.16% to NZD 1.4024.