Aust dollar weaker at noon

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The Australian dollar is almost one US cent lower after American jobs figures boosted the US currency.

At 12pm (AEDT) on Monday, the local currency was trading at US77.07c, down from US78.01c on Friday.

The local currency hit a low of US77.03c on Monday morning.

The US dollar strengthened after official data showed that 295,000 US jobs were created in February, which was better than market expectations of 235,000 positions.

The American unemployment rate also fell to a seven-year low of 5.5 per cent, from 5.7 per cent, giving economists another reason to believe the Federal Reserve would raise interest rates in June.

Source: Market Spectator

Japan’s Rebound From Recession Was Weaker Than First Estimated

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Japan’s rebound from recession was weaker than first estimated by the government following an unexpected decline in business investment.

Gross domestic product expanded an annualized 1.5 percent in the three months through December from the previous quarter, less than a preliminary 2.2 percent, according to revised data released Monday by the Cabinet Office. The expansion followed two straight quarters of contraction caused by an increase in the sales tax last April.

Bank of Japan Governor Haruhiko Kuroda is counting on a pickup in growth to reduce slack in the economy and increase inflationary pressure. While he says the tumble in oil prices will benefit the country in the longer term, cheaper energy is threatening to trigger a decline in consumer prices in coming months that challenges his 2 percent inflation target.

Private capital expenditure dropped 0.1 percent from the previous quarter, after a preliminary reading of a 0.1 percent gain. Consumer spending rose 0.5 percent. Preliminary data had shown an increase of 0.3 percent.

The yen advanced 0.1 percent to 120.74 per dollar at 8:58 a.m. in Tokyo.

Source : Bloomberg

Japan Stocks Fall on Bets of U.S. Rate Rise, Weaker Japanese GDP

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Japanese stocks fell after U.S. jobs data spurred speculation of an earlier interest-rate increase in the world’s largest economy, while a report showed Japan’s exit from a recession was weaker than previously reported.

Real-estate stocks led declines, with Mitsubishi Estate Co. dropping 1.9 percent. Mobile carriers retreated after Mizuho Financial Group Inc. downgraded NTT Docomo Inc., which fell 1 percent. Kyocera Corp. slid 0.5 percent as Reuters reported Microsoft Corp. was suing the electronic-parts maker over cell-phone patents. Japan Display Inc. jumped 4.2 percent after announcing it will build a factory to manufacture sixth-generation LCD panels.

The Topix Index slid 0.4 percent to 1,534.67 at the break in Tokyo, paring last week’s 1.1 percent gain. All but eight of its 33 industry groups fell. The Nikkei 225 Stock Average dropped 0.6 percent to 18,850.69. The yen traded at 120.85 after weakening 0.6 percent on Friday as U.S. stocks slumped the most in two months after nonfarm payrolls rose more than projected and the jobless rate sank to a seven-year low.

Source : Bloomberg

Japan Stocks Fall on Bets of U.S. Rate Rise, Weaker Japanese GDP

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Japanese stocks fell after U.S. jobs data spurred speculation of an earlier interest-rate increase in the world’s largest economy, while a report showed Japan’s exit from a recession was weaker than previously reported.

Real-estate stocks led declines, with Mitsubishi Estate Co. dropping 1.9 percent. Mobile carriers retreated after Mizuho Financial Group Inc. downgraded NTT Docomo Inc., which fell 1 percent. Kyocera Corp. slid 0.5 percent as Reuters reported Microsoft Corp. was suing the electronic-parts maker over cell-phone patents. Japan Display Inc. jumped 4.2 percent after announcing it will build a factory to manufacture sixth-generation LCD panels.

The Topix Index slid 0.4 percent to 1,534.67 at the break in Tokyo, paring last week’s 1.1 percent gain. All but eight of its 33 industry groups fell. The Nikkei 225 Stock Average dropped 0.6 percent to 18,850.69. The yen traded at 120.85 after weakening 0.6 percent on Friday as U.S. stocks slumped the most in two months after nonfarm payrolls rose more than projected and the jobless rate sank to a seven-year low.

Source : Bloomberg

China’s Stocks Fall to Three-Week Low as Brokerages Slump

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China’s stocks fell to a three-week low amid concern new share sales will divert funds from existing equities and as securities firms tumbled after regulators said they may allow banks to conduct brokerage businesses.

Citic Securities Co. and Haitong Securities Co. retreated more than 3 percent after the China Securities Regulatory Commission said it’s considering allowing banks to apply for brokerage licenses. Jiangxi Copper Co. dropped 2.6 percent to pace declines for commodity shares as a steeper-than-forecast drop in imports signaled weak demand.

The Shanghai Composite Index fell for a third day, losing 1 percent to 3,209.22 as of 9:45 a.m. Twenty-three companies including Orient Securities Co. are scheduled to sell new shares from Tuesday to Friday. The sales are expected to freeze about 3 trillion yuan ($479 billion), according to the median estimate of 12 brokerages surveyed by Bloomberg News.

Hong Kong’s Hang Seng China Enterprises Index declined 1.1 percent to 11,479.21. The CSI 300 Index slid 1.4 percent. The Hang Seng Index lost 0.8 percent. The Shanghai gauge plunged 2.1 percent last week, the first weekly decline in four weeks.

The Bloomberg China-US Equity Index fell 1 percent in New York on Friday, tracking losses for U.S. stock gauges after American jobs data spurred traders to bring forward bets on higher interest rates.

Source: Bloomberg