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 Chao.Deng@wsj.com