Thursday, November 6, 2014

Asian indices up on ECB assurances, PBOC liquidity injection

CNBC
Asian equities traded higher on Friday, following overnight gains in the U.S. on assurances from European Central Bank President Mario Draghi that the central bank will adopt further easing measures, if needed.
China also confirmed that it has pumped in 769.5 billion yuan of liquidity to the banking system, aimed at supporting slower growth in China's base money on a diminished supply of dollars. Overnight, U.S. stocks rose amid a volatile session, with the blue-chip Dow and S&P 500 hitting fresh records, while the tech-heavy Nasdaq (^IXIC) gained 0.4 percent.
Read More Could a strong dollar derail Wall Street's rally? Upbeat economic data from the U.S. also boosted sentiment. The government's tally of Americans filing for jobless benefits fell by 10,000 to 278,000 last week, compared with expectations of 285,000. Another report had productivity rising more than estimated in the third quarter.
U.S. nonfarm payrolls for the month of October are due later in the day. Economists polled by Reuters forecast the report adding 235,000 jobs to the economy and the unemployment rate unchanged from the preceding month at 5.9 percent.
Tokyo surges 0.8% Japan's benchmark Nikkei (Nihon Kenzai Shinbun: .N225) index rallied at the open, buoyed by the yen which hovered above a seven-year high of 115 against the U.S. dollar (Exchange:.DXY). Sony (Tokyo Stock Exchange: 6758.T-JP) was among the top gainers, adding nearly 2 percent early Friday. Automotive parts maker Takata Corporation reversed early gains to plunge 3.3 percent amid an ongoing crisis sparked by its defective airbags which has so far prompted the recall of almost 17 million vehicles worldwide made by at least 10 carmakers including Toyota Motor (Tokyo Stock Exchange: 7203.T-JP).
Read More APEC summit kicks off in China: What to expect Sydney rises 0.4% Australia's S&P ASX 200 (^AXJO) index reversed marginal losses at the open to higher on the last trading day of the week. Miners brushed off a fresh 5-year low in iron ore prices; Atlas Iron (ASX:AGO-AU) and BC Iron (ASX:BCI-AU) advanced 8.9 and 5.4 percent respectively while Fortescue Metal (ASX:FMG-AU) rallied 2.3 percent. In its monetary policy statement, the Reserve Bank of Australia highlighted the risk of a crash in the Chinese property market and a still-high local dollar as key sources of uncertainty as it again forecast sub par economic growth at home. Read More Australiabears sharpen their claws Seoul rebounds 0.1% South Korean shares entered a two-day winning streak early Friday, after reversing a 0.2 percent loss at the open.

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