Asian Shares Rise Ahead of U.S. Jobs Data

By Chao Deng 

Banks shares pressured Australian stocks Thursday, as stock markets elsewhere in the region rose ahead of a key jobs report in the U.S. later this week.

Australia's S&P ASX 200 was down 0.7% as the country's biggest banks take steps to raise billions of dollars to meet regulatory demands to bolster capital holdings against the risk of possible crises.

Australia & New Zealand Banking Group Ltd. announced Thursday plans to raise 3 billion Australian dollars (US$2.2 billion) as it reported a strong rise in quarterly profit. A day earlier, Westpac Banking Corp. increased the size of a hybrid-securities offering by A$500 million to A$1.25 billion.

Shares of each were down 1.6% and 4% respectively.

A fall in oil also is hurting energy firms after light, sweet crude prices fell to multi-month lows overnight. Weekly inventory data showed a small increase in U.S. crude production and President Barack Obama urged lawmakers to support the Iranian nuclear deal.

Brent was up last 0.3% at $49.76 in Asia trade, although it slid to as low as $49.65 overnight.

Shares of Rio Tinto Ltd. rose 0.6% ahead of the firm's first half earnings after the Australian market closes today. Underlying profit is forecast at US$2.42 billion, based on the median of seven analysts' forecasts compiled by The Wall Street Journal. That compares with a year-earlier profit of US$5.12 billion.

Elsewhere, the Nikkei Stock Average was up 0.8%, helped by a weaker yen, and South Korea's Kospi gained 0.3%.

Investors await U.S. jobs data on Friday that is expected to tamp down on expectations that the Federal Reserve will raise interest rates next month.

The U.S. dollar traded at Yen124.81 from Yen124.88 at the close yesterday. The yen has been rising ahead of U.S. nonfarm payrolls data Friday.

"Yen selling and futures buying is likely to continue for the short-term until this week's U.S. jobs data is completely digested," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

But the U.S. dollar remains stronger against a number of Asian currencies. It rose to as high as 3.8850 Malaysian ringgit for the currency to mark a new 17-year low. The dollar was at 3.8761 at Wednesday's close Asia.

In China, investors continue to assess the latest manufacturing data from China--service sector activity reached an 11-month high--as well as the regulator's latest support of mainland stocks.

Yesterday the Shanghai Composite Index ended down 1.6% at 3694.57. The Hang Seng gained 0.4%.

Write to Chao Deng at [e-mail]