Asia shares track Wall Street higher, dollar becalmed

Asian shares edged ahead on Monday as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on U.S. fiscal stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.3 percent, with Australia ahead by 0.5 percent.

Japan's Nikkei .N225 rose 0.7 percent in the wake of a firmer finish on Wall Street. Japanese Prime Minister Shinzo Abe meets U.S. President Donald Trump on Feb. 10 and 11, with trade and currencies likely to be on the agenda.

Attendees clap during a ceremony marking the end of trading in 2016 at the Tokyo Stock Exchange (TSE) in Tokyo, Japan December 30, 2016. REUTERS/Toru Hanai
Attendees clap during a ceremony marking the end of trading in 2016 at the Tokyo Stock Exchange (TSE) in Tokyo, Japan December 30, 2016. REUTERS/Toru Hanai

Dealers were still absorbing Friday's surprise move by China's central bank to raise short-term interest rates.

While the increases were modest, they suggested Beijing was intent on both containing capital outflows and reining in risks to the financial system created by years of debt-fuelled stimulus.

It was the first move in the repo rate since October 2015.

"This change is ground-breaking and suggests that the central bank will change onshore rates more frequently," wrote analysts at ANZ in a note. "The bottom line is to prevent a cash crunch amidst deleveraging and deflating financial bubbles in certain sectors."

On Wall Street, banks had ended Friday strongly as President Donald Trump moved to roll back regulations intended to prevent a repeat of the global financial crisis.

JP Morgan Chase (JPM.N) shares closed up 3.1 percent and helped push the S&P bank index .SPXBK up 2.6 percent. The Dow .DJI rose 0.94 percent, while the S&P 500 .SPX gained 0.73 percent and the Nasdaq .IXIC 0.54 percent.

Friday's payrolls data also showed U.S. jobs jumped more than expected in January as construction firms and retailers ramped up hiring, but wages growth still slowed.

"All in all a very mixed payroll report, with the breakdown tending to validate the latest Fed message of a gradual tightening and no need to rush into a hike at the next meeting," said Deutsche Bank's global head of forex Alan Ruskin.

"This data plays to the idea that there may be an extended gestation period both for easier U.S. fiscal policy and tighter monetary policy."

Fed fund futures <0#FF:> show only a slim chance of a hike in March and a Reuters poll of primary dealers found none expected a move before the second quarter.

That cautious outlook kept the dollar was marginally softer at 112.55 yen JPY= having lost 2.3 percent last week in its worst weekly performance since late July.

The euro was a fraction firmer at $1.0782 EUR= while the dollar dipped against a basket of currencies to 95.720 .DXY.

In the commodities market, spot gold XAU= was 0.1 percent higher around $1,221.00 an ounce.

Oil prices edged up after the United States imposed sanctions on some Iranian individuals and entities, days after the White House rebuked Tehran for a ballistic missile test.

U.S. crude futures CLc1 added 7 cents to $53.90, while Brent LCOc1 gained 8 cents to $56.89 a barrel having rallied 2 percent last week. [O/R]

Reuters

Other News

Vietnam, US strengthen cooperation to ease suffering of AO/dioxin victims

Vietnam, US strengthen cooperation to ease suffering of AO/dioxin victims

A delegation from the Vietnam Association for Victims of Agent Orange/dioxin's chapter in Ho Chi Minh City (VAVA HCMC) visited the US directly inform American friends about the long-term consequences of AO/dioxin in Vietnam and seek the support of progressive groups, veterans, legal experts and youth organisations in efforts to care for the victims.

Indonesia earthquake death toll rises, 2,000 evacuated

Indonesia earthquake death toll rises, 2,000 evacuated

The earthquake struck off Flores Island near Mbay town in Nagekeo district, East Nusa Tenggara province, triggering strong aftershocks. Several houses and other structures were damaged, while landslides disrupted roads in some areas.

Indian Embassy thanks Vietnam for support after Phu Quoc boat tragedy

Indian Embassy thanks Vietnam for support after Phu Quoc boat tragedy

The embassy said on its official X account that the flight carrying the victims' mortal remains departed Ho Chi Minh City on July 13 and arrived in Mumbai later the same day. Authorities in the Indian states of Andhra Pradesh, Kerala and Tamil Nadu coordinated the transportation of the remains to their final destinations.

Vietnamese community in Venezuela backs rescue team on humanitarian mission

Vietnamese community in Venezuela backs rescue team on humanitarian mission

All members of the Vietnamese rescue team in Venezuela have maintained strict discipline, a strong sense of responsibility and unwavering focus when carrying out search, rescue and disaster recovery tasks, with the determination to successfully fulfil the international humanitarian mission entrusted by the Party, State and military.

Key issues ex high agenda at the ASEAN Future Forum 2026

Key issues ex high agenda at the ASEAN Future Forum 2026

PSNews - Nearly six decades after its founding, ASEAN is entering a new phase of transformation. Geopolitical turbulence, intensifying competition among major powers, non-traditional security challenges, and rapid technological change are raising fundamental questions about the region’s future trajectory. In this context, the ASEAN Future Forum (AFF) 2026 is more than a platform for regional countries to discuss current issues; it is designed to identify strategic pathways for ASEAN in the years ahead.

Malaysia bans social media accounts for children under 16

Malaysia bans social media accounts for children under 16

Under the new rules, social media platforms are required to implement age-verification systems and prevent users under 16 from creating accounts. The regulations apply to platforms with at least eight million users in Malaysia, including Facebook, Instagram, TikTok and YouTube.

Cambodia ranked world's top country for natural environment in 2026

Cambodia ranked world's top country for natural environment in 2026

Cambodia currently manages 73 protected natural areas covering more than seven million hectares, equivalent to about 41% of the country’s total land area. These protected areas play a vital role in forest conservation, wildlife habitat protection and biodiversity preservation through stricter law enforcement and conservation measures.

ASEAN chief spotlights Vietnam’s role in shaping bloc’s future

ASEAN chief spotlights Vietnam’s role in shaping bloc’s future

Vietnam is expected to maintain active contributions across ASEAN’s three pillars - the political-security community, the economic community, and the socio-cultural community; while further enhancing regional connectivity through infrastructure projects and stronger economic linkages.

Vietnam supports UNESCO's people-centred approach, multilateral cooperation: official

Vietnam supports UNESCO's people-centred approach, multilateral cooperation: official

Van affirmed Vietnam’s support for the UNESCO80 reform roadmap, focusing on the organisation’s core mandate, priority areas, interdisciplinary approach, and the special status of the Vietnam National Commission for UNESCO, and UNESCO representative offices, alongside efforts to diversify resources and strengthen global partnerships to enhance the organisation’s effectiveness.