The Dow Jones industrial average crossed 15,000 for the first time before closing 1% higher at 14,973.96 and the Standard & Poor's 500 index rose 1% to 1,614.42, closing above 1,600 for the first time on Friday, after the Labor Department reported that U.S. employers added 165,000 workers last month and many more in February and March than previously estimated. The unemployment rate fell to 7.5%, which was the lowest level in four years. The report counterbalanced weeks of mixed signals about manufacturing and corporate earnings and renewed hopes of a recovery in the world's largest economy.
Base metal prices posted solid gains of up to 6.2% in London trade on Friday with copper faring the best. World crude oil prices rose solidly on Friday with investors concluding that stronger US employment would underpin US and global growth and thus oil demand. Brent crude rose by $1.34 or 1.3% to US$104.19 and US Nymex crude lifted by $1.62 or 1.7% to $95.61 a barrel.
In the Asia Pacific market, Malaysian shares jumped sharply today, with the KLSE Composite surged 3.4% to 1,752.02, outperforming in the Asia Pacific region after the country's ruling political alliance won national elections albeit with a weakened majority, to extend its unbroken, 56-year rule, and reassuring investors who had worried about a potential change of government.
In Australia, Sydney shares rallied, with the mining shares led gainers on taking a cue from stronger commodity prices. However, portion of the gains were wiped out before finishing the day due to a weaker than forecast domestic retail spending report, China service PMI data, and ahead of RBA decision of interest rate. All Ordinaries Index was up 28.40 points, or 0.56%, to 5133.80, after moving between 5120- 5175.30. The benchmark S&P/ASX200 index advanced 26.70 points, or 0.52%, to 5,156.20.
Fortescue share price advanced 5.9% to A$3.61 after the junior iron ore miner said it has opened its Firetail iron ore mine in Western Australia's Pilbara region, part of a wider A$3.2 billion development. The company said its 60 million tonne per annum (mtpa) Solomon mine was a major component of Fortescue's expansion to 155mtpa by the end of this calendar year.
Shares in Lynas, which has a rare earth plant in Malaysia, surged 16% to A$0.58 on news that the Malaysia's National Front coalition won re-election, fending off an opposition challenge that had unnerved investors. Lynas' A$800 million rare earth plant in Malaysia, the world's biggest outside China, finally began production in November after lengthy environmental and safety disputes with residents and the Save Malaysia Stop Lynas and Stop Lynas Coalition protest groups since construction began two years ago.
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Leighton shares rose 2.2% to A$19.43 after the construction giant forecasted to make a full year profit range of A$520 to A$600 million after positing first quarter results. Leighton made a net profit of A$123 million in the three months to the end of March. That compares to a loss of A$80 million in the same period in the previous year, when the company was reeling from $1 billion-plus loss in blowouts at the Brisbane Airport Link and Victorian desalination plant projects. Revenue in the three months to March was A$5.4 billion, up from $5.1 billion in the prior comparable period.
Shares in Boral dropped 3.2% to A$4.52 after the Australian building materials maker warned that continued weakness in the domestic housing market would impact on full year results. Boral said it expects full year 2013 net profit after tax before significant items to be in the range of A$90 million to A$105 million, assuming a further A$10 million from property sales yet to be finalized. Boral said on Monday that its earnings from Boral's construction materials and cement division in the three months to March 31 were A$19 million below the company's forecasts, due to weaker building activity in Victoria, delays to projects in Victoria and South Australia, and poor weather in southeast Queensland.
Also key economic news in Australia, ANZ's monthly job advertising survey found ads declined 1.3% in April, after a 0.5% fall in March. Job ads remained higher than in late 2012, but remained 25% below their last peak at the start of 2011.
The monthly retail trade report has been issued by the Australian Bureau of Statistics this morning, showing that Australian retail turnover fell 0.4% in March 2013, seasonally adjusted, following a rise of 1.3% in February 2013. Through the year, Australian retail turnover rose 3.2% in March 2013, seasonally adjusted, compared to March 2012. The largest contributor to the fall in March 2013 was clothing, footwear and personal accessory retailing (-4.2%) followed by household goods retailing (-1.5%), other retailing (-1.0%) and department stores (-0.1%). These falls were partially offset by rises in food retailing (0.8%) and cafes, restaurants and takeaway food services (0.2%).
The TD Securities-Melbourne Institute Monthly Inflation Gauge released on Monday, showing consumer price increased tad 0.3% in April, after a 0.2% rise in March and a flat result in February as a fall in petrol prices and a rise in fruit and vegetables prices cancelled each other out. In the 12 months to April, the gauge rose 2.1%, the equal lowest result in nine months.
In China, Shanghai-listed shares advanced, sending the benchmark Shanghai Composite 1.16% higher at 2231.17, on the top of prior session 1.44% gain, thanks to improved optimism for corporate earnings and easing liquidity pressure. Appetite for risk assets grew as investors are more optimistic about corporate earnings after combined net profit of companies listed on Shanghai's A-share market rose 8.6% in the October-December quarter and 11% in the January-March quarter from a year earlier. Market gains were also prospered due to calming concerns about market liquidity following data from the Shanghai and Shenzhen stock exchanges showed nearly 18.31 billion yuan worth of locked-up shares become eligible for trading this week, sharply down from the 40.9 billion yuan in shares that became tradable last week.
Metal & mining and energy shares climbed up in Mainland on the back of strong rise in commodity prices, in particular copper which jumped by 6.2%. Financial stocks went up on news that the People's Bank of China was set to allow foreign institutions greater access to its stock markets. Minmetals Development Co gained 3.7% to 14.98 yuan, while Jiangxi Copper Co jumped 3.6% to 21.33 yuan. Zhongjin Gold Co rose 1.1% to 12.48 yuan. Zijin Mining Group Co surged 1.3% to 3.14 yuan. Shanghai Yuyuan Tourist Mart Co notched up 1.6% to 7.49 yuan. Haitong Securities Co rose 0.9% to 11.30 yuan and China Everbright 1.6% to 3.16 yuan. Industrial & Commercial Bank of China added 0.5% to 4.10 yuan. Ping An Bank Co. gained 2.9% to 20.31 yuan. Shanghai Pudong Development Bank added 1.2% to 10.13 yuan.
In Hong Kong, blue chip shares ended higher, with the benchmark Hang Seng Index rose 225.13 points or 1% from prior day to 22915.09, on tracking a cue from Wall Street Friday's. Meanwhile sign of funds inflow and earmarked for the big IPOs (Sinopec Engineering and Galaxy Securities started taking orders from Monday for IPOs valued at a total of US$3.6 billion) also bolstered buying activities. Market gains were, however, limited, as weak PMI numbers from China (51.1 in April - lowest in 20 months) and key earnings later this week are amongst the dampeners. Key earnings and data this week includes quarterly results from SJM Holdings (0880.HK) (Monday), HSBC (0005.HK) (Tuesday), HKEx (0388.HK) and AAC Technologies (2018.HK) (Wednesday), China's inflation data due Thursday, and HSI quarterly review results Friday
Among the 50 HK blue chips, 40 rose, while 6 fell and remaining 4 unchanged. Sands China advanced 2.6% to HK$41.45, while Tingyi dipped 2.9% to HK$20.35, making themselves the largest blue-chip gainer and loser. Market heavyweights were mostly higher. China Mobile was up 0.4% to HK$85.15 on talks that tenders for 310,000 TD base stations will kick off soon, while HSBC rose 0.9% to HK$86 ahead of its earnings report tomorrow. Casino operator Galaxy Entertainment Group jumped 6% to HK$36.15 after the company said it would buy assets on Macau's Cotai Strip from Get Nice Holdings for 3.25 billion Hong Kong dollars ($419 million). Shares of Get Nice zoomed 11% to HK$0.39 after selling its casino assets to Galaxy.
In India, the Indian benchmark indices closed slight higher on first trading day of the week. The barometer index, the S&P BSE Sensex, was provisionally up 91.23 points or 0.47%, up 112.56 points from the day's low and off 27.42 points from the day's high. Index heavyweight and cigarette major ITC dropped. Another index heavyweight Reliance Industries (RIL) advanced. The market breadth, indicating the overall health of the market, was positive. IT stocks were in demand on an upbeat April job report. Metal stocks edged higher on renewed buying. Pharma major Sun Pharmaceutical Industries reversed direction after scaling a record high. Adani Power fell after reporting weak Q4 March 2013 results.
Elsewhere, New Zealand's NZX50 advanced 1.14%, Indonesia's Jakarta Composite added 1.35%, Taiwan's Taiex rose 0.42%, and Singapore's STI rose 0.37%. South Korea's Kospi was 0.2%. Japan's Nikkei 225 index was closed for a public holiday.
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