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Shares in Shanghai down after weekend trade data, Nikkei gains

Published 05/08/2016, 10:56 PM
Updated 05/08/2016, 10:57 PM
© Reuters.  Shanghai lower after trade data at weekend
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Investing.com - Shares in Shanghai fell on Monday in Asia as weekend trade data weighed on sentiment, though foreign exchange reserves posted a second straight monthly gain.

The Shanghai Composite fell 1.59%, while the S&P/ASX 200 drifted down 0.33%. The Nikkei 225 however was up 0.54% as investors mulled the minutes from the central bank's April policy meeting.

The Bank of Japan published the minutes of its April policy meeting, showing some numbers expect the target date for 2% sustained inflation may need to be pushed back.

Japan also reported average cash earnings for April rose 1.4%, well above a 0.6% year-on-year gain seen.
Still overall wage growth remains gradual as companies are cautious about increasing fixed labor costs amid slow global and domestic demand.

In China, monthly trade data released on Sunday, which showed that both exports and imports fell more than expected in April, added to concerns over the health of the world’s second largest economy. At the same time, foreign exchange reserves rose for a second straight month.

Last week, U.S stocks inched up on Friday, as nonfarm payrolls in the U.S. rose in April by its lowest level in seven months, potentially lowering the probability that the Federal Reserve could raise interest rates before the end of the first half.

On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) said domestic nonfarm payrolls in April increased by 160,000, considerably below a downwardly revised gain of 209,000 in March and the lowest monthly total since last September.

Nevertheless, the unemployment rate remained unchanged at 5.0%, while average hourly earnings increased by 0.3%, in line with consensus estimates.

The Dow Jones Industrial Average gained 79.79 or 0.45% to 17,740.50, while the S&P 500 Composite index added 6.53 or 0.32% to 2,057.16, capping a relatively flat 5-day stretch when both indices closed fractionally lower for the week.

The NASDAQ Composite index, meanwhile, rose 19.07 or 0.40% to 4,736.16, withstanding a sharp decline in the biotech sector.
On the S&P 500, seven of 10 sectors closed higher as stocks in the Basic Materials, Industrials and Consumer Services industries led. For the week, Energy, Basic Materials and Industrials sectors closed lower.

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