{"id":21404,"date":"2017-02-06T09:00:52","date_gmt":"2017-02-06T09:00:52","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=21404"},"modified":"2017-02-06T09:00:52","modified_gmt":"2017-02-06T09:00:52","slug":"asia-shares-lag-wall-st-gains-dollar-doldrums","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/asia-shares-lag-wall-st-gains-dollar-doldrums.html","title":{"rendered":"Asia shares lag Wall St. gains, dollar in doldrums"},"content":{"rendered":"
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Asia shares lag Wall St. gains, dollar in doldrums<\/span><\/strong><\/span><\/h2>\n

Asia shares lag Wall St. gains, dollar in doldrums:- Asian shares crept up on Monday as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on U.S. fiscal stimulus.<\/span><\/p>\n

E-mini futures for the S&P 500 ESc1 were barely changed and spread betters pointed to a steady start for the major European bourses.<\/span><\/p>\n

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.4 percent, with Taiwan .TWII leading the pack by adding 0.9 percent.<\/span><\/p>\n

Japan’s Nikkei .N225 rose 0.2 percent in the wake of a firmer finish on Wall Street. Japanese Prime Minister Shinzo Abe meets U.S. President Donald Trump on Feb. 10 and 11, with trade and currencies likely to be on the agenda.<\/span><\/p>\n

A private survey out of China showed activity in the services sector remained strong in January as companies reported a solid increase in orders, though the pace of growth eased.<\/span><\/p>\n

Local markets seemed unimpressed and Shanghai stocks were barely changed .SSEC. Dealers are still absorbing Friday’s surprise move by China’s central bank to raise short-term interest rates and whether its attempts to reduce leverage in the system this year will dampen growth.<\/span><\/p>\n

While the rate increases were modest, they suggested Beijing was intent on both containing capital outflows and reining in risks to the financial system created by years of debt-fueled stimulus.<\/span><\/p>\n

It was the first move in the repo rate since October 2015.<\/span><\/p>\n

“This change is ground-breaking and suggests that the central bank will change onshore rates more frequently,” wrote analysts at ANZ in a note.<\/span><\/p>\n

“The bottom line is to prevent a cash crunch amidst deleveraging and deflating financial bubbles in certain sectors.”<\/span><\/p>\n

DOLLAR ON DEFENSE<\/span><\/p>\n

On Wall Street, banks had ended Friday strongly as President Donald Trump moved to roll back regulations intended to prevent a repeat of the global financial crisis.<\/span><\/p>\n

JP Morgan Chase (JPM.N) shares closed up 3.1 percent and helped push the S&P bank index .SPXBK up 2.6 percent. The Dow .DJI rose 0.94 percent, while the S&P 500 .SPX gained 0.73 percent and the Nasdaq .IXIC 0.54 percent.<\/span><\/p>\n

Friday’s payrolls data also showed U.S. jobs jumped more than expected in January as construction firms and retailers ramped up hiring, but wages growth still slowed.<\/span><\/p>\n

“All in all a very mixed payroll report, with the breakdown tending to validate the latest Fed message of a gradual tightening and no need to rush into a hike at the next meeting,” said Deutsche Bank’s global head of forex Alan Ruskin.<\/span><\/p>\n

“This data plays to the idea that there may be an extended gestation period both for easier U.S. fiscal policy and tighter monetary policy.”<\/span><\/p>\n

Fed fund futures <0#FF:> show only a slim chance of a hike in March and a Reuters poll of primary dealers found none expected a move before the second quarter.<\/span><\/p>\n

That cautious outlook kept the dollar softer on the yen at 112.52 yen JPY=, having lost 2.3 percent last week in its worst weekly performance since late July.<\/span><\/p>\n

The euro was a fraction firmer at $1.0775 EUR= while the dollar dipped against a basket of currencies to 95.763 .DXY.<\/span><\/p>\n

In the commodities market, spot gold XAU= was 0.3 percent higher around $1,223.00 an ounce.<\/span><\/p>\n

Oil prices edged up after the United States imposed sanctions on some Iranian individuals and entities, days after the White House rebuked Tehran for a ballistic missile test.<\/span><\/p>\n

U.S. crude futures CLc1 added 17 cents to $54.00 per barrel, while Brent LCOc1 gained 18 cents to $56.99 a barrel having rallied 2 percent last week.<\/span><\/p>\n

Source:-\u00a0http:\/\/www.reuters.com\/article\/us-global-markets-idUSKBN15L01R<\/span><\/div>\n

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