The Bureau of Labour Statistics reported that the U.S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase and below an upwardly revised 241,000 rise the previous month. The U.S. private sector added 87,000 jobs last month, disappointing expectations for 195,000 rise, after an upwardly increase of 226,000 in November. The unemployment rate fell by 0.3%age points to 6.7%, but that was largely due to people dropping out of the labour force.
The soft jobs data stoking fears that U.S. recovery could hit a soft patch, though stocks saw support on expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected.
The Fed has been buying $85 billion of bonds per month to force down interest rates and spur economic growth, helping to buoy stock prices. The Fed said in December it would reduce its purchases by $10 billion per month to $75 billion beginning this month due to an improving economy.
Among Asian bourses, shares in Indonesian market outperformed the regional market, with the benchmark Jakarta Composite index up 3.2% to 4390.77, its highest close in nearly eight weeks, as investors cheered President Yudhoyono's last-minute decision to allow the export of copper, iron ore, lead and zinc concentrates to continue, while banning other mineral ore exports.
In Thailand, Thai shares jumped, with SET Composite index up 2.2% to 1283.56, its highest level in more than two weeks, as a proposal to put off the Feb. 2 election triggered short covering.
Thai Prime Minister Yingluck Shinawatra has invited leaders of anti-government protesters and political parties to discuss an Election Commission proposal to push back the date of the snap election she called.
Tens of thousands of anti-government protesters occupied parts of central Bangkok on Monday, meeting no resistance from the authorities, ratcheting up a two-month agitation to force the resignation of Prime Minister Yingluck.
In China, shares in Mainland China extended falling streak, with benchmark Shanghai Composite index down 3.73 points to 2009.56, a fresh five-month low, amidst worries of a looming Chinese financial crisis, fuelled by record debt, and as investors shrugged off regulatory attempts to control the initial public offering (IPO) market.
On Sunday, the securities regulator said it will make random inspections on book building and road shows to keep companies in line. Fears that a glut of new listings will hurt liquidity led the index to post a 3% weekly loss on Friday. The Shanghai index has dropped 5% this year, extending 2013's 6.75% decline, amid concern slowing economic growth will hurt profits.
Shares of technology, energy, consumer-discretionary and telecom companies dropped. Goertek retreated 2.6% to 32.59 yuan. Neusoft Corp. fell 2.9% to 12.13 yuan. China Oilfield lost 6% to 20.61 yuan. Gree Electric slumped 3.8% to 28.35 yuan.
Share of China's materials counter recoded strong gains, with Aluminum Corp leading the way, up 9.7% to A$3.50 after aluminum producer returned to profit after it cut costs and sold assets to its parent.
In Australia, stock market finished first trading session of the week in the red, as losses in banks and financials consumer products and energy counters were more than offset by gains in bullion and mining stocks. The benchmark S&P/ASX 200 index declined 20.30 points, or 0.38%, to 5292.10. The broader All Ordinaries lost 19.50 points, or 0.37%, to 5296.80.
Shares of precious metal miners were sharply higher, lifted by gains in bullion prices. Gold futures lifted with the Comex gold price up by US$17.50 or 1.4% to US$1,246.90 per ounce on Friday. Kingsgate Consolidated was up 4.5% to A$1.05, Newcrest Mining 6.1% to A$8.87 and Perseus Mining 11.9% to A$0.33.
Nickel miners rallied on expectations of higher prices after Indonesia's export ban. Western Areas climbed 9% while Mincor Resources ended over 4% higher.
Home loan commitments for November beat estimates to rise 1%, which saw home builders Boral and CSR rally 0.6 and 1.5%, respectively. Meanwhile, job advertisements fell in December, pointing to signs of stabilization in the labour market.
Shares of iron ore miners were weak on tracking fall in iron ore prices in the international market. The iron ore price fell by US30c to US$130.70 a tonne on Friday. BHP Billiton rose 0.33% to A$36.56 while Rio Tinto shed 0.2% to A$63.51 and Fortescue Metals lost 1.2% to A$5.14. Nickel producer Western Areas was one of the best performers, soaring 9% to A$2.56.
Telstra Corp shed 0.2% to A$5.25 after agreeing to sell 70% of its Sensis directories business to a U.S. private-equity firm at a price of about A$400 million.
The Bureau of Statistics said on Monday that number of Australian home-loan approvals rose by a seasonally adjusted 1.1% in November from October. The value of loans for investment housing rose 1.5% from October, the ABS said. Finance approvals to build new houses rose 2.3% in November. Approvals to buy new homes fell 4.3%, while lending for already built houses rose 1.4%.
In Hong Kong, city's benchmark index advancing for a second day, after weaker-than-expected U.S. jobs data eased concern the Federal Reserve will accelerate stimulus cuts. The benchmark Hang Seng Index provisionally ended 42.51 points higher from prior day at 22888.76.
Among the HK 50 blue chips, 20 rose and 24 fell, with six stocks remaining steady. Lenovo added 3.8% to HK$9.54 on hope of higher global handset shipment for 2014 to 1.3 billion sets, while China Resources Land declined 2% to HK$19.52 on concerns liquidity tightening in China may lead to the slower transactions in residential properties, making themselves the biggest blue-chip gainer and loser.
Elsewhere, stock in Aluminum Corp. of China surged 7% to HK$2.77 after the company projected its 2013 operating results will swing to profit. Lenovo Group gained 3.8% to HK$9.54 as the Chinese company held the top spot among worldwide PC makers in shipments last year, according to preliminary data from International Data Corp. and Gartner Inc.
In India, key benchmark indices surged as a weaker-than-estimated US jobs report eased concern that the US Federal Reserve may accelerate the pace of stimulus cuts. As per provisional figures, the S&P BSE Sensex was up 409.07 points or 1.97% to 21,167.56.
Infosys extended Friday's post-result gains and hit record high. Many other IT stocks extended Friday's gains triggered by Infosys raising revenue growth guidance for FY 2014. TCS and HCL Technologies hit record high. Wipro and Tech Mahindra scaled 52-week high. Bank stocks edged higher after global regulators diluted a planned debt limit for banks amid warnings that the measure would penalize low-risk financial activities and curtail lending.
The index of industrial production (IIP) in India declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013. The sharp decline in the output of manufacturing sector by 3.5% mainly led to decline in IIP in November 2013. Meanwhile, the marginal 1% growth in mining sector output and healthy 6.3% growth in the electricity generation restricted further dip in industrial production during November 2013. The government unveiled industrial production data for November 2013 after market hours on Friday, 10 January 2014.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected to ease at 10.1% in December 2013, from a record high of 11.24% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil CPI data for December 2013 after trading hours today, 13 January 2014.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.72%. Taiwan's Taiex index jumped 0.43%. Malaysia's KLSE Composite added 0.46%. Singapore's Straits Times index eased 0.27%. Markets in Japan were closed for a holiday.
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