Tokyo Stocks to Start Week With Gains
Japan's
benchmark Nikkei index appears to be set for a strong open on Monday
following a decent U.S. employment report late last week, but caution
may set in after data at the weekend pointed to a sputtering ...
Tokyo Stocks to Start Week With Gains
By: Nyshka Chandran | News Assistant, CNBC Asia-Pacific
Japan's benchmark Nikkei
index appears to be set for a strong open on Monday following a decent
U.S. employment report late last week, but caution may set in after
data at the weekend pointed to a sputtering economic recovery in China.
Trade in Japanese stock futures showed a rebound for the Nikkei. Chicago futures traded at 13,230, down from the Osaka close of 13,270; both are higher than the benchmark's previous close of 12,877.
The Nikkei was Asia's worst-performing index last week, with losses exceeding 6 percent.
(Read More: Emerging Market Funds See Biggest Exodus Since 2011)
Trading volumes in Asia are likely be thin on Monday with Australian and Chinese markets shut for public holidays.
Trade in Japanese stock futures showed a rebound for the Nikkei. Chicago futures traded at 13,230, down from the Osaka close of 13,270; both are higher than the benchmark's previous close of 12,877.
The Nikkei was Asia's worst-performing index last week, with losses exceeding 6 percent.
(Read More: Emerging Market Funds See Biggest Exodus Since 2011)
Trading volumes in Asia are likely be thin on Monday with Australian and Chinese markets shut for public holidays.
| Name | Price | Change | %Change | ||
|---|---|---|---|---|---|
| NIKKEI | Nikkei 225 Index | 12877.53 | --- | UNCH | 0% |
| HSI | Hang Seng Index | 21575.26 | -263.17 | -1.21% | |
| ASX 200 | S&P/ASX 200 | 4737.70 | -43.50 | -0.91% | |
| SHANGHAI | Shanghai Composite Index | 2210.90 | -31.21 | -1.39% | |
| KOSPI | KOSPI Index | 1923.85 | --- | UNCH | 0% |
| CNBC 100 | CNBC 100 ASIA IDX | 6643.31 | -77.50 | -1.15% |
Data on Friday showed the U.S. economy added 175,000 new jobs in May,
indicating the economy was expanding modestly, but not enough to
convince investors the Federal Reserve could pare back its bond-buying
program soon.
Wall Street shares closed sharply higher on the closely-watched payrolls number, with all three major averages rallying over 1 percent each.
(Read More: Markets May Have Gone Too Far on Taper Talk: Plosser)
Employment is a key indicator for the Fed and Chairman Ben Bernanke has indicated the central bank could start tapering off its monthly $85 billion bond purchase program if the jobs market shows consistent improvement.
China's economic recovery was cast in doubt after May data showed subdued activity, fueling talk about whether Beijing could step in with stimulus measures to put the recovery back on track.
Exports rose just 1 percent last month from a year earlier, down from a 14.7 percent rise in April, while imports shrank after expanding the previous month. Annual inflation slowed to 2.1 percent in May, the lowest in three months, while producer prices edged deeper into deflationary territory.
(Read More: Fresh China Data Fuel Weakness Fears)
The Bank of Japan kicks off its two-day meeting on Monday and investors will be waiting to see if the central bank will take further steps to curb volatility in Japanese government bonds (JGBs).
Japan releases April current account data and a preliminary reading of first-quarter gross domestic product numbers around 7:50 am Singapore/Hong Kong time.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter
Wall Street shares closed sharply higher on the closely-watched payrolls number, with all three major averages rallying over 1 percent each.
(Read More: Markets May Have Gone Too Far on Taper Talk: Plosser)
Employment is a key indicator for the Fed and Chairman Ben Bernanke has indicated the central bank could start tapering off its monthly $85 billion bond purchase program if the jobs market shows consistent improvement.
China's economic recovery was cast in doubt after May data showed subdued activity, fueling talk about whether Beijing could step in with stimulus measures to put the recovery back on track.
Exports rose just 1 percent last month from a year earlier, down from a 14.7 percent rise in April, while imports shrank after expanding the previous month. Annual inflation slowed to 2.1 percent in May, the lowest in three months, while producer prices edged deeper into deflationary territory.
(Read More: Fresh China Data Fuel Weakness Fears)
The Bank of Japan kicks off its two-day meeting on Monday and investors will be waiting to see if the central bank will take further steps to curb volatility in Japanese government bonds (JGBs).
Japan releases April current account data and a preliminary reading of first-quarter gross domestic product numbers around 7:50 am Singapore/Hong Kong time.
— By CNBC.com's Nyshka Chandran. Follow her on Twitter
@NyshkaCNBC
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