Upbeat US figures boost Asian markets
Strong US manufacturing figures boosted Asian stock markets Tuesday
while Tokyo was pushed higher following an announcement from Toyota that
the auto giant would start fixing recalled cars.
Cheaper shares in China following a tumble also brought bargain
hunters into the mix, while rising commodity prices benefited resource
companies in Australia.
Tokyo’s Nikkei rose 1.88 percent to 10,396.48 by lunch, lifted by a
surge in Toyota shares after the company said it would start its
programme of repairing vehicles this week.
Toyota jumped 5.5 percent to 3,640 yen, recovering some of its recent
heavy losses, after the company said it had started shipping parts to US
dealers to fix the millions of vehicles recalled due to sticking
The Japanese firm said it would resume production of the eight
affected models on February 8 at factories in North America and resume
sales after dealers have fixed the vehicles on their lots.
Hong Kong rose 1.18 percent in the first few minutes of trade and
Shanghai was 1.35 percent up after a correction that had been caused by
fears Beijing may restrict credit.
Wall Street was pushed 1.17 percent higher on Monday after the US
Institute of Supply Management said its manufacturing index, also known
as the purchasing managers index, climbed to 58.4 percent in January,
the best number since 2004 and well ahead of the 50 percent that
A separate report showed consumer spending rose 0.2 percent in
December, and personal incomes increased 0.4 percent.
Hopes for a strong recovery in the United States had been boosted
Friday by data showing the world’s biggest economy grew 5.7 percent in
the fourth quarter, the strongest in six years.
And dealers now have an eye on Washington for figures on unemployment
and job creation for January, which will give more clues on the strength
of the rebound.
Analysts expect the report to show a net gain of 50,000 jobs,
following a loss of 85,000 in December. That would be a big positive,
although not enough to bring down the US unemployment rate from its
level of 10 percent.
Australian shares lifted in early trade Tuesday, as resources stocks
got a fillip from higher oil and gold prices.
By noon (0100 GMT) the benchmark S&P/ASX200 index was up 68.7 points,
or 1.57 percent, at 4,592.8 points and the broader All Ordinaries index
had gained 71.5 points, or 1.52 percent, to 4,618.5 points. “The global
manufacturing data we got from pretty much all around the world was
very, very strong last night,” IG Markets institutional dealer Chris
“We do still have quite a few downside risks in the market, you can’t
rule that out, but at least in the short term it’s been good to get some
positive news from all around the world.” Shortly after noon, mining
giant BHP Billiton was up 3.24 percent at 40.47 Australian dollars
(36.06 US) and Rio Tinto had gained 4.64 percent to 70.54 dollars.
Meanwhile investors were anticipating an interest rate decision by the
Australian central bank later in the day.