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Asian shares up on recovery hopes amid positive US data

Category: Business

Published: 17th Feb 2012 03:34:10

Asian markets have risen on hopes of a recovery in the US after the world's biggest economy reported better-than-expected jobs data.

Japan's Nikkei 225 index rose 1.9%, South Korea's Kopsi gained 1.5% and Hong Kong's Hang Seng index added 1%.

On Thursday, data showed new claims for unemployment benefits in the US fell to their lowest level since March 2008.

As a result, US shares closed at their highest level since the 2008 financial crisis.

The Dow Jones index of leading companies closed up 1% at its highest level since May 2008, while the tech-based Nasdaq index climbed 1.5% to its highest level since December 2000.

When we started the year, economists were unanimous in their opinion that it will be a weak job recovery, but the statistics have belied that so far”

Some of the biggest economies in Asia such as China, Japan and South Korea rely heavily on exports to boost their growth and the US is one of the key markets for their goods.

However, the high rate of unemployment in the US has not only hurt growth in its economy, but also hurt demand for Asian goods.

A recovery in the jobs market is seen by most economists as key to an overall US economic recovery.

Analysts said that, given its impact on consumer confidence, US jobs data was also closely monitored by Asian firms.

"It is among the top two or three factors that exporters in the region look at," Arjuna Mahendran of HSBC Private Bank told the BBC.

"When we started the year, economists were unanimous in their opinion that it will be a weak job recovery, but the statistics have belied that so far."

Mr Mahendran added that a sustained recovery would help the region's exporters to grow.

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BBC News, 2012. Asian shares up on recovery hopes amid positive US data [Online] (Updated 17th Feb 2012)
Available at: http://www.ukwirednews.com/news/225894/Asian-shares-up-on-recovery-hopes-amid-positive-US-data [Accessed 20th Aug 2014]

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