Australian stocks lead Asian markets higher

HONG KONG — Australia’s stock market and currency jumped today (Feb 6) after encouraging economic data while gains on other major world benchmarks were more modest as investors waited for key policy meetings in Europe and a major United States job report.

Australia’s S&P/ASX 200 rose 1.2 per cent to 5,129.20 and the Australian dollar rose to its highest in more than three weeks after the government reported a surprise trade surplus in December. Economists had been expecting a deficit.

Economists at Societe Generale wrote in a report that the trade figures as well as “solid” growth in December retail sales indicate strong economic growth in the final quarter of last year for Australia, which has been contending with a cooling mining boom.

In early European trading, Germany’s DAX climbed 0.6 per cent to 9,167.85 while France’s CAC 40 advanced 0.4 per cent to 4,133.09. The FTSE 100 index of leading British companies was up 0.3 per cent to 6,477.90

US stocks were poised to edge higher. Dow futures rose 0.1 per cent to 15,389.00 while S&P 500 futures added 0.2 per cent to 1,747.40.

Benchmarks in Asia finished higher, although Japan’s benchmark Nikkei 225 index closed 0.2 per cent lower at 14,155.12 after spending most of the day in positive territory.

South Korea’s Kospi climbed 0.9 per cent to 1,907.89 and Hong Kong’s Hang Seng advanced 0.7 per cent to 21,423.13.

Markets in China remained closed until tomorrow because of Chinese New Year holidays.

Asian stocks were stabilising after sharp declines earlier in the week.

Investors are holding tight ahead of interest rate policy meetings by the European Central Bank and Bank of England later today and a US report on non-farm payrolls for last month tomorrow.

“Range trading is likely to dominate” before those events, said Mr Mitul Kotecha, Asian head of global markets research for Credit Agricole CIB.

While no change in policy is expected from the bank meetings, the results of the US job report will provide an important clue to the state of the world’s largest economy. That in turn will guide policymakers at the US Federal Reserve, who have been scaling back stimulus that has helped fuel gains in world markets.

In currencies, the dollar dipped to ¥101.35 from 101.54 in late trading Wednesday. The euro slipped to US$1.3525 from US$1.3540.

Benchmark US oil for March delivery was up 17 cents to US$97.55 in electronic trading on the New York Mercantile Exchange. The contract rose 19 cents to close at US$97.38 yesterday. AP