Stocks Gain With Dollar Before Jobs Data; Hong Kong Rises
Stocks gained, with a European index recovering from its biggest loss in 15 months, and the U.S. dollar strengthened versus major peers before the world’s largest economy reports payrolls data. Hong Kong shares rallied.
As investors assess the strength of the U.S. economy, analysts are predicting a return to gains of more than 200,000 in monthly nonfarm payrolls.
“The rise is at least in part due to traders buying back short positions ahead of tonight’s U.S. non-farm payrolls,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney, referring to bets that Asian equities would decline further.
The Hang Seng China Enterprises Index of mainland companies listed in the city rose 0.4 percent. Hong Kong’s top official Leung Chun-ying agreed to demands by student leaders for talks, nominating his his deputy, after protests disrupted some of the city’s busiest areas.
The Bloomberg Dollar Spot Index headed for a seventh weekly gain, its longest run since June 2010, as improving U.S. data adds to speculation the Federal Reserve will raise interest rates next year.
The Bank of Japan, which is trying to spur inflation through increasing the money base and buying assets, today snapped up a record 3.5 trillion yen ($32.2 billion) of Treasury bills. That beat the previous highs of 3 trillion yen on Aug. 1 and Aug. 22. The purchases sent the three-month bill rate to minus 0.02 percent. Two-year government bond yields fell to 0.06 percent, the lowest since Sept. 26.
Source: bloomberg- Stocks Gain With Dollar Before Jobs Data; Hong Kong Rises
