World Stocks Rise on U.S. Jobs Data, G-20 Stimulus Resolve
World stock markets rose Monday, following Wall Street higher after the pace of U.S. job losses eased and major countries pledged to keep extraordinary government measures in place to prop up the global economy.
Benchmarks in Japan, Hong Kong and China added about 1 percent or more, with Asia’s gains extending to Europe in early trade. Oil prices edged above $68 a barrel.
Friday’s U.S. government report showed companies cut 216,000 jobs last month, which was less dismal than expected and encouraged investor hopes of a turnaround in the labor market. The figure seemed to eclipse the ugly news that U.S. unemployment, despite fewer job losses, hit 9.7 percent — its highest since 1983.
Also buoying sentiment was a promise over the weekend from Group of 20 finance ministers to maintain stimulus efforts such as extra government spending and low interest rates. In China, stocks continued their recovery after the government said it would allow foreign investors to sink more money into the mainland’s markets.
“We’re turning a little more positive, partly because we had a correction for a month,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. “The U.S. report also helps support a belief that that we’re bottoming out and entering a recovery mode, at least for now.”
In Europe, Britain’s FTSE 100 jumped over 2 percent as America’s Kraft Foods Inc. proposed a 10.2 billion pounds ($16.7 billion) takeover of British candy maker Cadbury PLC. The offer was immediately rejected, though Kraft vowed to pursue the deal, and Cadbury shares rocketed 34 percent.
Benchmarks in Germany and France gained about 1 percent each.
Earlier in Asia, Japan’s Nikkei 225 stock average added 133.83 points, or 1.3 percent, to 10,320.94, snapping a three-day losing streak, and the dollar strengthened against the yen.
In Hong Kong, the Hang Seng was up 1.5 percent at 20,629.31. Shanghai’s main benchmark gained 0.7 percent to 2,881.12.
Australia’s index edged up 0.4 percent, Taiwan’s market was 1 percent higher and Indonesia’s benchmark rose 0.4 percent. Markets in Korea and Singapore were little changed.
Friday in the U.S., investors eventually shrugged off news about worsening unemployment and focused on the slower pace of job cuts.
In quite pre-holiday trade, the Dow rose 96.66, or 1 percent, to 9,441.27.
The Standard & Poor’s 500 index rose 13.16, or 1.3 percent, to 1,016.40, while the Nasdaq composite index added 35.58, or 1.8 percent, to 2,018.78.
Wall Street is closed Monday for a public holiday and will reopen on Tuesday. U.S. futures pointed to a higher open on Tuesday.
Oil prices were up modestly in Asian trade, with benchmark crude for October delivery up 40 cents at $68.42, as investors looked to this week’s OPEC meeting for a possible change in the cartel’s production. The contract Friday rose 6 cents to settle at $68.02.
The dollar strengthened to 93.21 yen from 92.95 yen. The euro rose to $1.4351 from $1.4309.
9/7/2009 4:24 AM JEREMIAH MARQUEZ, AP Business Writer HONG KONG