Investing.com – Asian stocks rose on Thursday after the news that Bank of Japan is not going to end its monetary easing uless inflation is firmly rooted and reporting of positive trade figures from Australia.
Bank of Japan Deputy Governor Kikuo Iwata told a gathering of business leaders in southern city of Miyazaki that, "even if the year-to-year rate of increase in the consumer price index reaches 2%, unless the bank is convinced that inflation is likely to remain around that level in a stable manner, it won''t suddenly end monetary easing.”
Japan’s Ministry of Finance’s weekly international transactions in securities data showed that in the week ending 1 February, Japanese investors sold a net JYP 1,815.8 billion in foreign bonds. For the week ended Jan 25, Japanese investors sold a net JYP357.0 billion in foreign bonds.
MOF also said that it auctioned JPY 5.303 trillion of 13 week treasury discount bills with the lowest price of 99.9875 to yield 0.0501%.
Australian Bureau of Statistics reported on Thursday that country’s trade surplus widened to AUD468 million in December from AUD83 million in November. Markets were instead expecting a trade deficit of AUD300 million. Country’s retail sales for December also rose by 0.5% against the expected rise of 0.4%. There was a 0.7% rise in November.
Markets in China remain closed for the weeklong lunar New Year holidays, and are due to reopen Friday.
Nikkei rose 0.33%, Hang Seng was up 0.43% while S&P/ASX rose 1.03%.
On Wednesday U.S. stocks traded flat to lower as investors balanced positive data out of the U.S. service sector with lackluster data out of the labor market.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.03%, the S&P 500 index slid 0.20%, while the Nasdaq Composite index fell 0.50%.
Stocks applauded the Institute for Supply Management''s report that its services purchasing managers’ index came in at 54.0 in January, up from 53.0 in December.
Analysts had expected the index to rise to 53.7.
The employment component of the index rose to its highest level since November 2010.
The data eased concerns over a possible slowdown in U.S. recovery after Monday’s ISM manufacturing index showed that activity slumped to a seven-month low in January, which was partially the product of rough winter weather.
On the flip side, payroll processor ADP reported that private-sector non-farm payrolls rose by 175,000 in December, below expectations for an increase of 180,000, which dampened spirits though the numbers didn''t spark a sell-off.
Losses were limited as investors concluded that a string of blizzards and bitter cold snaps may have prompted businesses to put off hiring early this year.
Friday’s official U.S. jobs report is expected to show that jobs growth rebounded in January after unseasonably cold weather in December kept gains down to 74,000.
On Thursday, the U.S. is to publish data on its trade balance as well as its weekly report on initial jobless claims.
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