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SINGAPORE—Asian stock markets were higher Thursday amid growing optimism that Greece’s debt swap would prove successful, while Japanese exporter stocks benefited from a weaker yen, which fell after Japan posted a record current account deficit.
As Thursday’s deadline approached, investors were cautiously optimistic that improving participation in a key debt swap for Greece, needed to keep the debt-laden nation from defaulting, was an indication that the country’s debt restructuring efforts would prove successful. However, gains in most markets were limited as many investors stayed on the sidelines before an official announcement on Greece’s debt swap was made and ahead of Friday’s much-awaited U.S. jobs data.
“If last night’s optimism on the (Greek) PSI is confirmed (Thursday) and U.S. non-farm payrolls follow the ADP data on (Friday), expect the momentum the market had at the beginning of the year to continue,” Miguel Audencial, sales trader at CMC Markets said in a note. “On the other hand if its double bogey where both provide unsatisfying results, anticipate more fear to be displayed by the equity market,” he added.
Japan’s Nikkei Stock Average gained 0.9%, Australia’s S&P/ASX 200 added 0.5%, South Korea’s Kospi Composite rose 0.1% and New Zealand’s NZX-50 advanced 0.3%.
Dow Jones Industrial Average futures were down 13 points in screen trade.
In Tokyo, exporter stocks gained on a weaker yen; Canon rose 1.5%, Nintendo advanced 2.1%, Panasonic gained 1.0% and Toyota Motor climbed 1.8%.
Sumco Corp. rose 2.1% following a Nikkei report that a turnaround fund backed by three major Japanese banks and Mitsubishi Corp. will invest ¥15 billion in the company.
Technology shares led gains in Seoul on expectations of fresh demand for components after the release of Apple’s new iPad. LG Display rose 2.0% and Hynix Semiconductor gained 1.4%.
In foreign exchange markets the euro was range-bound against the U.S. dollar as investors awaited the results of Greece’s debt swap as well as the European Central Bank’s policy decision and accompanying statement.
“Ahead of the European Central Bank meeting and outcome of the Greek PSI debt swap it is very difficult to see the euro moving out of ranges,” Credit Agricole said in a note to clients.
The single currency was at $1.3139 against the dollar, from $1.3150 late Wednesday in New York, and at ¥106.76 against the yen, from ¥106.62.
The U.S. dollar rose against the yen after Japan posted a record ¥437.3 billion current account deficit in January, well below expectations for a ¥322.4 billion deficit. The dollar rose as high as ¥81.33 following the data and was recently at ¥81.26 from ¥81.08 late Wednesday in New York.
The Australian dollar was weighed by weaker-than-expected employment data, which showed the Australian economy lost 15,400 jobs in February, below expectations for an addition of 5,000 jobs. The Australian dollar fell to US$1.0535 against the U.S. dollar from US$1.0571 just before the data, and was recently at US$1.0553.
Spot gold was at $1,685 per troy ounce, up 70 cents from its New York settlement on Wednesday. April Nymex crude oil futures were two cents lower at $106.14 per barrel on Globex.
Source: Dow Jones
