HONG KONG — Equities mostly rose in Asia on Monday following
a forecast-busting US jobs report and as investors kept tabs on the progress of
US President Joe Biden’s latest economy-boosting spending package.
اضافة اعلان
With holidays keeping business limited, trading was light,
but the strong employment reading on Friday provided healthy support, while
eyes turn to the upcoming earnings season.
The US Labor Department said the world’s top economy created
more than 900,000 jobs in March, far more than expected and reinforcing the
view that it is well on the recovery track after last year’s virus-induced
collapse.
“We can expect one million-plus prints if the US vaccination
efforts stay on track,” said OANDA’s Jeffrey Halley.
Meanwhile, upward revisions to figures in January and
February meant 156,000 more jobs than previously flagged were created.
Tokyo, Seoul, Singapore and Manila were all in positive
territory, though Jakarta and Bangkok fell.
And Mumbai sank more than 2 percent as India continues to
struggle with surging virus infections, which have forced the government to
impose limited lockdowns in Maharashtra state. However, observers said that
while they expect markets to continue their upward march this year as
vaccination programs progress and the global economy reopens, they expect the
gains to be a little harder.
“We are not doubting the market’s expectations of strong US
economic momentum,” Eric Robertsen, of Standard Chartered Bank, said. “But the
market has also priced in much of the good news up front.”
Focus now turns to Washington, where lawmakers are preparing
to discuss Biden’s $2.25 trillion infrastructure plan, which he has said will
create millions of jobs for struggling Americans.
Talks on the package come as the White House’s recently
passed $1.9 trillion stimulus begins to filter through, with $1,400 cash
handouts being delivered.
And the chances of the latest spending spurge getting
through Congress were given a boost at the weekend after a top Senate
Republican said the president could get an “easy bipartisan win” if he
concentrated on physical improvements such as rebuilding roads, bridges and
airports.
While many in the party oppose the planned tax hikes
penciled in to pay for the scheme, Roy Blunt, the chairman of the Senate
Republican Policy Committee, called on Democrats to focus on the traditional
pillars of infrastructure.
Axi strategist Stephen Innes said: “The infrastructure
package could have an enormous impact on ... (many areas of) the real economy,
including traditional infrastructure, construction, repairs of roads, bridges,
transport infrastructure and utility lines.
“There is still potentially a long catalyst runway courtesy
of the reopening and vaccine narrative. Not to mention the arrival of those
stimulus checks should feed directly into corporate profits, which is not
necessarily reflected in earnings yet.”
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