ASIA MARKETS: Asian Markets Swing Higher To Start The Week

Published August 06, 2017
Dow Jones Newswires

Nikkei benefits from weaker yen; ASX, Kospi rebound from last week's selloffs

Stocks started the week higher in Asia, building on Friday's gains in the Americas and Europe after an upbeat U.S. employment report helped sentiment behind demand for goods from Asia.

The report helped give The Wall Street Journal Dollar Index its best day in a month. The U.S. dollar was little changed Monday morning in Asia.

The dollar's rebound occurred as bond yields rose Friday. That helped the Nikkei to rise 0.6% Monday on gains from exporters and financial stocks, which benefit when the yen weakens and bond yields rise.

Regionally, "we have been seeing buying from the get-go," said Chris Weston, chief market strategist at IG Markets.

Australia's S&P/ASX 200 was up 0.8% after falling in the previous three sessions. Mining companies Rio Tinto (RIO) and BHP Billiton (BHP.AU) each rose about 2% as commodity prices continued to climb. Bank stocks were also strong.

Elsewhere, Korea's Kospi climbed 0.6%, continuing a rebound from a selloff last week stoked by the potential for tax increases there. Also, the United Nations Security Council over the weekend passed a unanimous resolution which could cut North Korea's annual export revenue by up to a third, or $1 billion.

In Hong Kong, Tencent Holdings (0700.HK) jumped 2% to reach fresh record highs. The Hang Seng Index rose 0.4% as it continued to march toward 2015's best level -- which if topped would put the index at heights not seen in a decade.

Chinese stocks opened down slightly but rebounded, with the small-cap-heavy ChiNext rising 1.3%. The Shanghai Composite , which fell in the last three sessions of last week and declined as much as 0.6% in early trading, was recently little changed. The index has risen for seven straight weeks, its longest winning streak since early 2015.

(END) Dow Jones Newswires

August 06, 2017 23:02 ET (03:02 GMT)