Asian shares rose across the board on Monday as strong offshore cues and higher commodity prices on the back of diminished rate hike expectations helped revive investors' appetite for risk. The U.S. economy added just 142,000 jobs last month, well below economist estimates for an increase of about 203,000 jobs, dampening expectations that the Federal Reserve would raise interest rates this year. The last two months' job figures were revised downward by a combined 59,000, suggesting weakness in the world's largest economy at a time when risks are growing from China's slowdown and political infighting.
The Chinese market was closed to celebrate the National Day festival. Hong Kong's Hang Seng index gained 348.41 points or 1.62 percent to finish at 21,854.50 on expectations that Beijing would strengthen fiscal policy and boost infrastructure spending to support growth.
Japanese stocks hit a two-week high with the prospects of a delay in U.S. rate hikes and signs of progress in Trans-Pacific Partnership negotiations boosting investor sentiment. The dollar was marginally higher against the yen on expectations the Bank of Japan will expand its stimulus program. The benchmark Nikkei average closed up 280.36 points or 1.58 percent at 18,005.49, the highest level since September 18, while the broader Topix index of all first-section shares rose 1.31 percent to 1,463.92.
Among the best performers, Fujitsu, Kawasaki Industries, Mitsubishi Chemical Holdings, Mitsubishi Corp and Japan Steel Works rose 4-6 percent. Market heavyweight Fast Retailing and robot maker Fanuc both rose over 2 percent, while mobile carrier Softbank Corp advanced 4.3 percent. Oil explorer Inpex Corp added 3.1 percent and JX Holdings rose 2.6 percent. Mazda Motor rose 1.4 percent on hopes that a free trade agreement being negotiated between several countries would give Japan's automakers a freer hand to source parts from Asia.
In economic news, Japan's services sector growth slowed in September as output and new orders rose at slower rates, a survey by Markit Economics showed with the corresponding PMI dropping to 51.4 from August's 22-month high of 53.7. Separately, a preliminary report showed that total labor cash earnings in Japan increased for the second straight month in August, but at a slower pace than in the prior month.
Australian shares also hit a two-week high as mostly positive economic data as well as higher gold and metal prices boosted investor confidence in the economy. The benchmark S&P/ASX 200 index rose 98.5 points or 1.95 percent to 5,510.5, the highest level since September 18, while the broader All Ordinaries index gained 94.9 points or 1.86 percent to close at 5,184.1.
Mining giants Rio Tinto and BHP Billiton jumped 2-4 percent. Gold miner Newcrest Mining soared 9.1 percent and Evolution Mining climbed 7.5 percent after gold prices rose more than 2 percent on Friday. Oil Search gained 1.5 percent and Woodside Petroleum rallied 3.1 percent. Woodside CEO Peter Coleman said there's no need to put forward a higher bid for Oil Search anytime soon.
The big four banks closed up between 1.2 percent and 1.7 percent, while Macquarie Group advanced 1.1 percent and insurer QBE climbed 2.6 percent. The Reserve Bank of Australia holds a policy review on Tuesday and many economists expect the central bank to keep the cash rate unchanged.
On the economic front, a monthly survey by Australia and New Zealand Banking Group revealed that job advertisements in the country climbed 3.9 percent in September, building on the 1.3 percent gain seen in August. On an annual basis, job ads rose 10.5 percent, slightly slower than August's 10.7 percent growth.
Separately, Australia's services sector expanded for the fourth consecutive month in September, marking its longest period of continuous growth since March 2008, the latest survey from the Australian Industry Group said with a Performance of Services Index score of 52.3, down from 55.7 in August.
The TD securities- Melbourne Institute's inflation gauge ticked up to 1.9 percent in the twelve months to September, reaching its highest level in 10 months but holding below the Reserve Bank of Australia's (RBA) target band of 2 to 3 percent.
Seoul shares pared early gains amid selling by foreign funds. The benchmark Kospi average rose as much as 1.3 percent in early trading before paring gains to end the session up 8.57 points or 0.44 percent at 1,978.25. Oil refiner SK Innovation and S-Oil Corp soared almost 6 percent each, while automaker Hyundai Motor dropped 1.8 percent and its affiliate Kia Motors fell 2.2 percent.
New Zealand shares joined the global rally amid speculation the U.S. Federal Reserve will hold fire a bit longer on its first interest-rate rise in nearly a decade. The benchmark NZX-50 index gained 37.03 points or 0.66 percent to close at 5,630.54 in thin trading. Shares of Kathmandu Holdings climbed 4.3 percent on reports that Briscoe's chief executive and controlling shareholder Rod Duke may launch another takeover bid for the outdoor retailer.
Elsewhere, India's Sensex was up 1.9 percent, Indonesia's Jakarta Composite index was climbing 3.2 percent, Malaysia's KLSE Composite was up 1.1 percent, Singapore's Straits Times index was rallying 1.7 percent and the Taiwan Weighted rose 0.6 percent.
Singapore's private sector activity expanded at the fastest pace in seven months in September as output grew at a solid pace, survey figures from Markit Economics showed.
On Wall Street, stocks reversed early steep losses to end sharply higher on Friday as the unambiguously soft payrolls report for September, downward revisions to the prior two months and disappointing factory orders figures dented rate hike hopes. The Dow rose 1.2 percent, the tech-heavy Nasdaq climbed 1.7 percent and the S&P 500 advanced 1.4 percent.
For comments and feedback contact: editorial@rttnews.com