Asia report: Markets finish higher as airline stocks ascend
Markets in Asia finished in the green on Monday, as investors got their first chance to react to the unprecedented rise in employment in the US, according to data released on Friday.
In Japan, the Nikkei 225 was up 1.37% at 23,178.10, as the yen strengthened 0.15% against the dollar to last trade at JPY 109.43.
Automation specialist Fanuc surged 4.01%, while among the benchmark’s other major components, fashion firm Fast Retailing was 1.7% higher and technology conglomerate SoftBank Group added 1.99%.
Japan Airlines was also in the green, ascending 3%, while ANA Holdings was 2.51% firmer.
The broader Topix index gained 1.13% by the end of trading in Tokyo, ending its trading day at 1,630.72.
On the mainland, the Shanghai Composite was up 0.24% at 2,937.77, and the smaller, technology-heavy Shenzhen Composite eked out gains of 0.01% to close at 1,856.89.
Fresh data out of China over the weekend showed exports from the country shrinking in May, as global demand was depressed by Covid-19 pandemic lockdowns.
South Korea’s Kospi was ahead 0.11% at 2,184.29, while the Hang Seng Index in Hong Kong was 0.03% higher at 24,776.77.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 1.08% while chipmaker SK Hynix rose 0.66%.
Airlines were in the green on the Korean peninsula, with Asiana Airlines managing gains of 0.12% and Korean Air Lines 0.49% firmer.
That sector sentiment was not universal, with Cathay Pacific Airways down 1.01% in Hong Kong, although China Southern shares there were ahead 3.14%.
Traders in the region had their first chance on Monday to react to Friday’s jobs data out of the United States, which showed a record 2.5 million jobs being added to the economy in May.
The movement was more than unprecedented, with economists surveyed by Dow Jones anticipating a fall in jobs of more than eight million.
“In the space of four weeks we’ve seen history made as the US economy posted a record number of job losses in one month, only to be followed by a record number of job gains in the following month,” said CMC Markets analyst Michael Hewson.
“Despite all of the enthusiasm over last month’s jobs report it doesn’t change the fact that US unemployment is still well above post financial crisis levels, and is likely to remain so for quite some time, with a margin for error in the unemployment numbers of around 3% due to uncertainty over how furloughed staff were counted by Bureau of Labor Statistics officials.”
Oil prices were higher as the region went to bed, with Brent crude last up 1.09% at $42.76 per barrel, and West Texas Intermediate 0.99% firmer at $39.94.
In Australia, markets were closed for the Queen’s Birthday public holiday.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 surged 3.16% to 11,524.16, as the country reported the recovery of its sole remaining Covid-19 case and the lifting of all economic and social restrictions, other than those at the border.
Flag carrier Air New Zealand jetted 9.15% higher after it outlined its plans to see “healthy profits” again by August 2022.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.26% at AUD 1.4312, and the Kiwi advancing 0.31% to NZD 1.5321.