Asia report: Most markets rise despite strong US payrolls

(Sharecast News) - Asia-Pacific markets opened higher on Thursday, with investors largely shrugging off stronger-than-expected US payrolls data that dampened expectations for Federal Reserve rate cuts and weighed on Wall Street overnight. As Patrick Munnelly, market strategy partner at TickMill, noted, "Asian markets continued their winning streak, climbing for the fifth consecutive day, as attractive valuations and promising growth prospects drew in eager investors," adding that "the MSCI Asia Pacific Index gained 0.7%, reaching a fresh all-time high" and has "surged about 13%" so far this year, compared with a 1.4% rise in the S&P 500.

Tokyo flat as Takaichi trade continues

In Japan, the Nikkei 225 briefly breached the 58,000 mark for the first time in history, extending its post-election rally amid renewed confidence in domestic politics and the ruling administration's economic agenda.

The benchmark later pared gains to close flat, down 0.02% at 57,639.84, while the broader Topix rose 0.7% to 3,882.16.

Market watchers said Japanese equities have notched several fresh highs in recent days, driven by the so-called 'Takaichi trade' following prime minister Sanae Takaichi's landslide Lower House victory.

Munnelly said "the yen emerged as the star among its G10 peers, while Japan's long-term bonds soared after prime minister Takaichi secured a resounding election victory, easing concerns over fiscal challenges."

Sharp Corporation fell 12.48%, BayCurrent dropped 10.42% and Sumco Corporation declined 8.47%.

Regional markets also in the green

Mainland Chinese markets edged higher.

The Shanghai Composite added 0.05% to 4,134.02, while the Shenzhen Component Index climbed 0.86% to 14,283.00.

Beijing Tianyishangjia New Material surged 16.99%, Shandong Binzhou Bohai Piston rose 10.1% and Saurer Intelligent Technology Co gained 10.07%.

In Hong Kong, the Hang Seng Index slipped 0.86% to 27,032.54.

Budweiser Brewing Company fell 5.21%, Lenovo Group declined 4.56% and Meituan dropped 4.5%.

South Korean equities outperformed, with the Kospi 100 jumping 3.6% to 6,256.92.

Hanmi Semiconductor advanced 9.97%, EcoPro Materials gained 9.91% and Posco ICT rose 9.44%.

Munnelly said South Korea is "boasting an impressive 31% gain, making it the top-performing market worldwide," as investors rotate into Asian equities amid shifting global capital flows.

Sydney and Wellington led higher by ANZ

In Australia, the S&P/ASX 200 increased 0.32% to 9,043.50.

ANZ Group climbed 8.47%, Northern Star Resources added 4% and Origin Energy rose 3.88%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 edged up 0.18% to 13,531.48, with ANZ Group gaining 8.95%, KMD Brands advancing 3.92% and Westpac Banking Corporation rising 3.45%.

Munnelly added that "futures on equity indices hinted that Asia's rally on Thursday could ripple into European and US markets," as global investors "shift some of their focus away from the dollar," allowing Asian bourses to outperform peers in the US and Europe.

Dollar broadly weaker, oil prices softer

In currency markets, the dollar was last down 0.18% on the yen to trade at JPY 153.06, as it rose 0.09% against the Aussie to AUD 1.4042 and declined 0.41% on the Kiwi to change hands at NZD 1.6466.

Munnelly said "the dollar extended its losing streak to six sessions," while "on the commodities front, both gold and silver edged lower."

Oil prices were also softer, with Brent crude futures last down 0.48% on ICE at $69.07 per barrel and the NYMEX quote for West Texas Intermediate off 0.4% at $64.37.

Reporting by Josh White for Sharecast.com.