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STOCKS NEWS ASIA-Shares to rise after data lifts Wall St

Published 01/05/2011, 06:14 PM
Updated 01/05/2011, 06:20 PM
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TOKYO, Jan 6 (Reuters) - Asian stocks are expected to gain on Thursday after global equities pared losses and the dollar jumped following strong data on U.S. private-sector jobs that added to growing evidence the U.S. economy is on a recovery path.

The dollar posted its best one-day gain in more than three months against the yen and in more than two weeks against the euro after a report that U.S. private employers added 297,000 jobs in December, nearly triple analysts' forecasts.

The stronger dollar pressured commodity prices, with copper tumbling from a record hit on Tuesday and gold down in its biggest three-day slide since mid-November.

The main Wall Street indexes rose between 0.3 and 0.8 percent after the jobs data.

The ADP Employer Services private-sector jobs report logged its biggest-ever rise on Wednesday. That came two days ahead of the U.S. government's closely watched and more comprehensive payrolls report for December, prompting many economists to raise their forecasts for that data.

In other positive economic data, the Institute for Supply Management reported that the U.S. services sector grew in December at its fastest pace in more than four years.

British shares gained 0.5 percent on the U.S. data, which helped miners and oil stocks pare losses and banks rally, while European shares rose 0.04 percent.

Asian stocks listed on Wall Street lost 0.57 percent.

A stronger dollar against the yen will likely help lift shares of Japanese exporters. The Tokyo market is seen moving higher, with Nikkei futures traded in Chicago 160 points above the last closing level in Osaka.

Australian shares are seen bouncing off a one-month low on the U.S. data. Stock index futures climbed 19 points or 0.4 percent to 4,733, an 18.1 point premium to the close of the underlying S&P/ASX 200 index.

Oil prices, which bounced back above $90 a barrel on the U.S. data, will likely boost resource-related shares.

HEADLINES: > US hiring surges in Dec, buoys economic outlook > Dollar jumps, stocks rebound on U.S. jobs data > U.S. Dec nonfarm payrolls forecast revised up > Microsoft to work with ARM chips, not just Intel > N.Korea wants talks, U.S wants end to provocations > Old Wall Street dogs try some new tricks > FAO sees record food prices heading even higher > China cenbank chief warns of inflation risk > Oil rallies to $90/bbl on strong US jobs data

KEY INDEXES pct change

Bank of New York Asia ADR index -0.57

Dow Jones Industrial Average +0.27

Nasdaq Composite Index +0.78

Nikkei futures in Chicago 10,380

Nikkei futures in Osaka 10,540

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TOP ASIA EVENTS:

For more Asian company earnings, see ASIA/EQTY

JAPAN - The U.S. envoy responsible for policy toward North Korea, Stephen Bosworth, will visit Japan.

JAPAN - Japan 10-year government bond auction. Results at 0345.

BEIJING - Global Urban Development Forum.

HONG KONG - HSBC to release Hong Kong Purchasing Managers' Index for December. (Reporting by Antoni Slodkowski; Editing by Michael Watson)

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