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Asian markets rise again as investors make most of feel-good vibe

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AFP Hong Kong
Last Updated : Sep 06 2019 | 9:35 AM IST

Asian markets rose again Friday as the feel-good factor that fired investors the day before looked set to push into the weekend, fuelled by upbeat data and trade optimism.

A growing sense that Britain could avoid crashing out of the European Union was adding to the positive vibe and keeping the pound at a more than one-month high against the dollar.

After a tumultuous August, dealers were given a much-needed shot in the arm this week with news that China and the United States would resume high-level trade talks next month in Washington.

This week also saw China flag plans for fresh economy-boosting measures, while data out of Washington on Thursday showed August private-sector jobs creation beat the previous month and was higher than expected.

A forecast-topping read on the US services sector provided extra joy.

The reports set the scene for the much-anticipated release of non-farm payrolls later Friday, which are closely watched for clues about the state of the world's top economy.

The reading could also give an idea about the Federal Reserve's plans for interest rates this year, with observers expecting it to unveil more cuts this year. Expectations for an extended run of reductions has lent much-needed support to markets this year.

However, Kristina Hooper, chief global market strategist at Invesco, said: "While this has been some positive economic data, it makes it a little more difficult for the Fed to cut rates."
Alluding to an upcoming speech on Friday by Fed boss Jerome Powell, she told Bloomberg TV: "I suspect what we will hear from Powell is a very tepid commentary on the Fed's ability to provide monetary policy accommodation."

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First Published: Sep 06 2019 | 9:35 AM IST

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