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World Shares Up Ahead of US Jobs Report05/03 04:48
European and Asian shares were mostly higher Friday ahead of a report on
U.S. employment that is expected to show the economy remains strong despite a
prolonged bout of high interest rates.
(AP) -- European and Asian shares were mostly higher Friday ahead of a
report on U.S. employment that is expected to show the economy remains strong
despite a prolonged bout of high interest rates.
Oil prices and U.S. futures were higher.
Germany's DAX gained 0.3% to 17,958.12 and the CAC 40 in Paris rose 0.5% to
7,950.67. In London, the FTSE 100 added 0.3% to 8,198.88.
The future for the S&P 500 was up 0.3% while that for the Dow Jones
Industrial Average gained 0.6%.
Markets in Tokyo and mainland China were closed for holidays.
The Japanese yen strengthened slightly against the U.S. dollar amid signs of
heavy central bank intervention to tamp down the dollar's advance.
The financial newspaper Nihon Keizai Shimbun reported that estimates showed
the government spending an estimated 8 trillion yen (about $50 billion) in
reserves this week to try to keep the yen from slipping further against the
dollar.
The weaker yen has helped boost prices for imported goods, a factor behind
the Bank of Japan's recent decision to give up its negative interest rate
policy and raise its benchmark rate to zero to 0.1% from a longstanding level
of minus 0.1%. It might raise rates further, Marcel Thieliant of Capital
Economics said in a commentary, even if its target of 2% isn't met.
"Even though the economic case for preventing the yen from sliding is much
weaker, the Ministry of Finance seems to have responded with an even more
forceful round of foreign exchange interventions this week than it did two
years ago," Thieliant said.
While a weak yen is a boon for Japanese companies that earn much of their
revenues overseas, significant shifts in the foreign exchange market can play
havoc with corporate planning and a sharply weaker yen also boosts costs for
imports of oil and other vital commodities.
The dollar was trading at 153.26 early Friday, down from 153.65 late
Thursday. The euro rose to $1.0743 from $1.0727.
In Asian trading, Hong Kong's Hang Seng jumped 1.5% to 18,475.92, tracking
gains on Wall Street. News of fresh moves by Chinese leaders to energize the
economy also helped drive buying of technology shares.
E-commerce giant Alibaba climbed 4.1% and rival JD.com was up 5.5%. Baidu
advanced 4.4%.
Australia's S&P/ASX 200 gained 0.6% to 7,629.00 and the Kospi in Seoul
slipped 0.3% to 2,676.63. Taiwan's Taiex picked up 0.5%.
India's Sensex shed 0.9% to 73,952.37.
On Thursday, the S&P 500 rose 0.9%, a day after swinging sharply when the
Federal Reserve said it's likely delaying cuts to interest rates but not
planning to hike them. That more than halved its drop for the week.
The Dow advanced 0.9% and the Nasdaq composite jumped 1.5%.
Later Friday, the U.S. government will report on how many jobs employers
added last month, one of the most highly anticipated economic updates each
month.
Economists expect it to show a slowdown in hiring. However, a report
Thursday showed that fewer U.S. workers applied for unemployment benefits last
week than economists expected in the latest signal that the job market remains
solid despite high interest rates.
The U.S. economy is in a tight spot, where the hope is that it remains
strong enough to stay out of a recession but not so strong that it worsens the
already stalled progress on inflation.
Stubbornly high readings on inflation this year pushed Federal Reserve Chair
Jerome Powell to say on Wednesday that it will likely take "longer than
previously expected" to get enough confidence about inflation to cut interest
rates.
In energy trading, U.S. benchmark crude oil gained 13 cents to $79.08 per
barrel in electronic trading on the New York Mercantile Exchange. It lost 5
cents on Thursday.
Brent crude, the international standard, added 13 cents to $83.80 per barrel.
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