American markets are drifting ever-so-slightly lower in pre-market action, following yesterday’s monster gains. There’s no reason for anything too wild until the big jobs number comes out at 8:30.
But markets rallied hard overseas, particularly in Asia.
WSJ: Hong Kong’s Hang Seng Index jumped 1.6% to 21829.72 and Japan’s Nikkei 225 Average climbed 0.7% to 9789.35, while China’s Shanghai Composite added 0.3% to 3164.04, taking its winning run to a sixth straight session. Australia’s S&P/ASX 200 climbed 1.9% and South Korea’s Kospi advanced 1.3%, with India’s Sensex coming off its early gains, but still 0.2% higher in afternoon trading.
“It is reasonable that markets should rise because major central bankers have already given strong hints that the low interest rate environment will be maintained for a period of time,” said Ben Kwong, chief operating officer at KGI Asia. “The U.S. dollar is under pressure and it’s quite obvious that its weakness is driving the commodity and equity markets.”
Commodity shares performed strongly, with Rio Tinto climbing 3.9%, BHP Billiton rising 2.6% and Sino Gold Mining adding 2.1% in the resources-laden Sydney stock market. Jiangxi Copper gained 2.6% and Shandong Gold-Mining rose 1.7% in Shanghai, with energy producer Cnooc jumping 3.4%.
Europe is up modestly, as well. Like us, they’re waiting for the jobs number, perhaps.
Gold, meanwhile, continues to get very near the $1100 mark, last trading at $1094.10.