Asian Stocks Rise On US Jobs Report, Regional Data

(RTTNews) - Asian stocks rose broadly on Monday, as solid U.S. jobs data, better-than-expected export data from China and upwardly revised growth figures from Japan bolstered the outlook for global economic growth. Gains were limited, however, ahead of key economic reports from China and the U.S. due later in the week.

China's National Bureau of Statistics will publish May inflation data on Tuesday, and industrial output, retail sales and fixed-asset investment data on Friday, giving a clearer picture of the state of the world's second-largest economy. In the U.S., investors eye reports on retail sales, producer prices and consumer sentiment later in the week for fresh signs the economic recovery is gaining traction.

Japanese shares hit a three-month high as the yen held weaker and stronger than expected first-quarter GDP data buoyed investor sentiment. The benchmark Nikkei average rose 0.31 percent to 15,124, its highest level since March 11, while the broader Topix Index edged up marginally to 1,234.78 in thin trading.

Among the prominent gainers, Hitachi Construction Machinery, Tokyo Electron, Isuzu Motors and Panasonic Corp rose 2-3 percent. High-beta realty stocks gained ground, with Mitsui Fudosan and Sumitomo Realty & Development gaining 1-2 percent. Dentsu Inc. jumped 2.5 percent after the advertising agency reported higher sales in May 2014 compared with a year earlier.

In economic releases, the Japanese economy grew an annualized 6.7 percent in the first quarter of 2014 when adjusted for inflation, bigger than the 5.9 percent growth estimated initially, reflecting strong economic activity in the form of consumer spending and investment by corporations ahead of the sales tax hike in April, second estimates released by the Cabinet Office showed.

The deficit on trade in goods widened to JPY 780.4 billion in April from JPY 708.2 billion in the year-ago period, while bank lending in Japan rose at a faster rate in May, separate reports showed.

Chinese shares ended little changed as concerns that new IPO issues would hit liquidity overshadowed solid economic data. Property developers gained ground, offsetting losses in the technology sector. The benchmark Shanghai Composite Index edged up 0.03 percent to 2,030.50, while Hong Kong's Hang Seng Index rose 0.73 percent to 23,117.47, snapping three days of losses on optimism the global economy is improving.

Data from General Administration of Customs released over the weekend showed that China's trade surplus increased to $35.92 billion in May, the highest in over five years, from $18.46 billion in April. While exports rose 7 percent to $195.47 billion year-over-year, beating estimates, imports declined 1.6 percent to $159.55 billion, signaling weaker domestic demand.

New Zealand stocks edged higher, joining a global rally after U.S. jobs data signaled a gradually improving labor market. The benchmark NZX-50 Index rose 0.08 percent to 5,187.35 as investors eyed the key monetary policy statement by the Reserve Bank due on Thursday. Among the prominent gainers, A2 Milk Company, Nuplex, Pacific Edge and New Zealand Oil & Gas rose between 1.3 percent and 2.5 percent.

Telecom Corp shares advanced 0.6 percent. The nation's biggest telecommunications provider announced that non-executive director Kevin Roberts has retired from its board after serving for nearly six years. MightyRiverPower rose 0.4 percent after it proposed to raise up to $300 million through issue of unsecured subordinated capital bonds.

Seoul shares retreated as institutional investors offloaded tech stocks. The benchmark Kospi average dropped 0.27 percent to 1,990.04 as trading resumed following the Memorial Day holiday on Friday. Samsung Electronics tumbled 3.3 percent and LG Electronics shed 1.6 percent.

Elsewhere, India's Sensex was up 0.8 percent at a fresh record high on continued hopes the much-anticipated Budget next month will contain measures to revive stalled projects, boost investment and cut some subsidies.

The Taiwan Weighted average rose 0.3 percent and Singapore's Straits Times Index was up 0.2 percent while Malaysian shares were marginally lower and Indonesia's Jakarta Composite Index was down 1.1 percent. The Australian market was closed for the Queen's Birthday public holiday.

U.S. stocks rose on Friday after the May payrolls report showed the economy added over 200,000 jobs for the fourth month in a row. The Dow and the S&P 500 rose about half a percent each to fresh record closing highs, while the tech-heavy Nasdaq added 0.6 percent.