By Daniel Inman
Australian stocks rose early Tuesday, helped by gains in miner
BHP Billiton Ltd., while Japan and South Korea declined ahead of
the U.S. jobs report for September.
In recent months, the labor report has been a closely watched
economic indicator in global markets, examined by investors to see
whether the U.S. economy is healthy enough for the Federal Reserve
to roll back its stimulus program.
Expectations were high in September for the central bank to
change direction, and markets were taken by surprise when it kept
its bond-buying program unchanged. The recent government shutdown
in the U.S. has led many to conclude that stimulus will stay steady
until next year.
The dollar was unmoved against the Japanese yen (USDJPY) at
Yen98.15.
Although most markets were lower early in the session, stocks
clung close to the break-even mark, though Australia managed to
make a modest gain. Stocks were also coming down from increases in
the past few sessions brought about by the resolution of the
government shutdown in the U.S., as well as a pickup in Chinese
growth in the most recent quarter.
The S&P/ASX 200 added 0.3%, helped by mining giant BHP
Billiton (BHP) which rose 2% after it raised its iron-ore
production guidance for the 2014 fiscal year. The firm now expects
to produce 212 million metric tons of iron ore, or 2.4% above the
previous guidance.
Also in Sydney, retailer David Jones Ltd. (DJS.AU) ] dropped
1.8% after Chief Executive Paul Zahra said Monday that he would
resign for personal reasons after the company finds a
successor.
South Korea's Kospi Composite Index dropped less than 0.1% and
Japan's Nikkei Stock Average was 0.3% lower.
Shares in chemicals firm Asahi Kasei Corp. rose 1.8% in Tokyo
after a Nikkei newspaper report said that the company's
consolidated operating profit for the first fiscal half ended in
September likely surged 83% on-year to over Yen70 billion. The
results would set a new record for an interim period.
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