Brocker.Org: GLOBAL MARKETS-Asian equities edge up as Japan outperforms, dollar regains traction – Nasdaq

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Reuters

* MSCI Asia-Pacific index up 0.1 pct, Nikkei rises 0.4 pct
    * Dollar/yen up with funding deal to avert U.S. govt
shutdown
    * Euro near 5-1/2-mth high after upbeat European inflation
data
    * Crude slips on oversupply concerns, gold dips as dollar
gains

    By Shinichi SaoshiroTOKYO, May 1 (Reuters) - Asian stocks shook off a sluggish
start and edged up on Monday, with Japan outperforming on upbeat
earnings, while the dollar regained traction as the U.S.
government looked likely to avoid a shutdown.
    MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> added 0.1 percent. Japan's Nikkei <.N225>
climbed 0.4 percent, with high-tech blue chips gaining on strong
earnings. [.T]
    Asian shares initially took their cue from Wall Street,
which dipped on Friday after data showed the U.S. economy grew
at its weakest pace in three years in the first
quarter.[nLNNSFEDE9]
    The mood brightened slightly, however, on news that U.S.
congressional negotiators hammered out a bipartisan agreement on
a spending package to keep the federal government funded through
Sept. 30, thus averting a government shutdown. [nL1N1I302A]
    Pointing to a higher open for the main market later in the
day, S&P mini futures gained about 0.1 percent  while the
safe-haven U.S. 10-year Treasury yield  rose after
three successive days of declines.
    Overall reaction was still limited as many markets in Asia
and Europe are closed for Labour Day.
    "It is hard for markets to make big moves with holidays in
so many places today, and people are just waiting for more
information to come out," said Harumi Taguchi, principal
economist at IHS Markit in Tokyo.
    While U.S. consumer spending has almost stalled, a surge in
business investment and wage growth suggested activity would
regain momentum as the year progresses, limiting Wall Street
losses. Moreover, strong earnings have kept the U.S. equity
market at or near record levels.
    "The main focus of the broader markets this week will be on
the United States, with the Fed's May 2-3 policy meeting and the
jobs report on Friday," said Masahiro Ichikawa, senior
strategist at Sumitomo Mitsui Asset Management in Tokyo.
    "While many of the indicators in the first quarter were
weak, the jobs data could confirm that labour market conditions
continue to improve and lift the dollar and U.S. yields."
    Asian markets were little fazed by China's official
manufacturing survey on Sunday which showed growth in the
country's factories slowed more than expected in April to a
six-month low. [nL4N1I200S]
    As trading resumed on Monday the safe-haven yen initially
rose against the dollar in response to Saturday's missile test
by North Korea. [nL1N1I02CO]
    But the dollar gradually regained traction after the
knee-jerk reaction to the missile test faded.
     The greenback was up 0.1 percent at 111.620 yen ,
edging back towards a four-week peak of 111.780 scaled last week
when Emmanuel Macron's victory against anti-euro nationalist
Marine Le Pen in the first round of France's presidential
elections reduced demand for the safe-haven currency. The runoff
vote is on May 7.
    The euro handed back earlier modest gains and was flat at
$1.0891 .
    The common currency had been lifted on Friday after euro
zone inflation data rose more than expected and returned to the
European Central Bank's target. [nL8N1I030C]
    The euro was still in range of the 5-1/2-month high of
$1.0951 struck early last week on relief over the first round of
the French presidential elections.
    The pound was 0.3 percent lower at $1.2907  after
climbing to a seven-month high of $1.2957 on Friday, when
traders were seen to have closed off bets against the pound
ahead of Britain's long bank holiday weekend. [GBP/]
    The dollar index against a basket of major currencies rose
0.1 percent to 99.143 <.DXY>.
    The Australian and New Zealand dollars were slightly lower
at $0.7483  and $0.6856 , respectively.
    In commodities, crude oil prices slipped amid lingering
concerns that an OPEC-led production cut has failed to
significantly tighten an oversupplied market. [O/R]
    U.S. crude  shed 11 cents to $49.22 a barrel, heading
back towards a one-month low of $48.20 plumbed late last week
and Brent  was down 16 cents at $51.89 per barrel.
    Spot gold  gave back Friday's gains as the dollar
bounced and slipped 0.35 percent to $1,262.90 an ounce.

 (Editing by Simon Cameron-Moore)
 ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:
shinichi.saoshiro.reuters.com@reuters.net)(+813-6441-1774))

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((For the state of play of Asian stock markets please click on: <0#.INDEXA>))

Keywords: GLOBAL MARKETS/ (WRAPUP 3)






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