Beijing, Oct. 8 (BNA): Asian stocks followed Wall Street higher on Friday after US lawmakers temporarily averted a potential government debt default while investors awaited US job numbers.
Market indices advanced in Shanghai, Tokyo, Hong Kong and Sydney, according to an AP report today.
Congress temporarily set aside the debt row on Thursday to extend the government’s borrowing ability through December. Experts say a default would have set back the recovery from the coronavirus pandemic.
Also on Friday, investors were watching the Labor Department’s employment data that they hope will show US employers hired more workers in September.
Federal Reserve officials say employment levels are a potential factor when the US central bank begins to roll back economic stimulus.
The Shanghai Composite Index rose 0.5% to 3,587.46 as Chinese markets reopened after a five-day holiday. Tokyo’s Nikkei 225 jumped 2.2% to 28275.52 and Hong Kong’s Hang Seng rose 0.2% to 24737.54.
Seoul’s Kospi advanced 0.3% to 2,968.77 and the ASX-S&P 200 rose 0.8% to 7,313.70. New Zealand and Southeast Asia markets advanced.
On Wall Street, the S&P 500 rose 0.8% to 4,399.76, its third straight daily gain. The index earlier swung between gains and losses of more than 1% for four days on concern about the debt fight in Washington.
The Dow Jones Industrial Average rose 1% to 3,4754.94. The Nasdaq added 152.10 points to 14,654.02.
On Thursday, the Labor Department reported that the number of people filing for unemployment fell last week.
Investors are watching employment levels as an indication of when the Federal Reserve will reduce its monthly bond purchases and other forms of support for the economy as it recovers from the coronavirus pandemic.
Federal Reserve officials have responded to rising inflation by saying they want to make sure there is a recovery before withdrawing support.
Stronger hiring could add to the pressure on prices to rise faster, which investors fear could prompt the Fed and other central banks to undo the stimulus that has boosted stock prices.
In energy markets, the price of US crude rose $1.10 to $79.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract increased 87 cents on Thursday to $78.30. Brent crude, the price basis for global oils, rose $1.06 a barrel to $83.01 in London. It added 87 cents in the previous session to $81.95.
The dollar rose to 111.84 yen from 111.63 yen on Thursday. The euro advanced to $1.1554 from $1.1550.
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