Economy Aug 6, 2012
Hong Kong: Markets are on a tear this morning after US jobs data on Friday came in stronger than expected, boosting risk sentiment on Wall Street, which is proving contagious across Asia.
As at 7.30 am IST, Nifty futures are up in excess of 1 percent, and flirting with the 5300 mark, which presages a nice bounce at the start of trading day today.
Elsewhere across the region, most indices are similarly buoyant - some more than others. Hong Kong's Hang Seng index is the outperformer, up in excess of 2 percent, with Tokyo's Nikkei not far behind. The Shanghai market, though, is somewhat on edge.
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Investor sentiment is being driven largely by data out of the US on Friday, which showed that non-farm payrolls increased by higher than consensus expectations. However, Barclays analysts reason that the underlying details suggest that the data was somewhat more mixed than markets have read them. The headline numbers were offset by the fact that the unemployment rate edged up marginally, and hourly earnings data too showed at best a marginal improvement.
In addition, risk sentiment was sustained by the stronger-than-consensus data from Europe, and some positive comments from the Spanish Prime Minister.
Back home, sentiment this week will be driven largely by corporate results and economic data. IIP data due out later this week will likely disappoint, as will the deficient monsoon.
For this morning, however, the cues from overseas are enough to get markets off to a great start to the trading week.
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