Asia markets rise on US jobs data, euro dips

 Eurozone stocks slid Monday and the euro dropped from a six-month dollar high as investors looked beyond Emmanuel Macron's French presidential victory to bet on whether he will be able to push through economic reforms.  

The European single currency reached $1.1023, the highest level since November, at around 2030 GMT Sunday after it became clear that the pro-EU former investment banker Macron had won. However, the euro soon fell back to $1.0942 in afternoon trading.

The Paris stock market was meanwhile down 0.8 percent, Frankfurt was off 0.1 percent while London, outside the eurozone, was up 0.3 percent.

"It's been a lively start to trading on Monday, with the initial relief rally following Emmanuel Macron's victory in the French election quickly fizzling out as the euro and European stock markets reversed gains to trade lower on the day," said Craig Erlam, analyst at Oanda trading group.

Macron, 39, has proposed an ambitious domestic reform agenda including cutting state spending, easing labour laws, boosting education in deprived areas and extending new protections to the self-employed.

But he is inexperienced, has no political party and must fashion a working parliamentary majority after legislative elections next month.

"Yesterday's election of centrist liberal Emmanuel Macron as the next French President bodes well for the revitalisation of France's lacklustre economy and the European project more generally," said Jessica Hinds of Capital Economics. 

"But he will encounter plenty of opposition and may have to water down his growth-boosting reforms."

Wall Street also opened lower, with the Dow dipping less than 0.1 percent.

- Asian rally -

Earlier Monday, Asian stock markets mostly rose following Wall Street's rally Friday as dealers cheered a strong US jobs report.

Markets had been given a positive lead from New York. All three main US indices ended with healthy gains Friday, with the Nasdaq posting yet another record, following a better-than-expected jobs reading.

The US economy added an estimated 211,000 net new positions in April while the unemployment rate fell to 4.4 percent, the lowest since May 2007, the Labor Department reported.

The reading further strengthens prospects the Federal Reserve will stick to a planned course of two more interest rate rises this year.

Tokyo's Nikkei index, which closed for much of last week for Japanese holidays, ended Monday with a gain of 2.3 percent, reaching a 17-month high after playing catch-up.

Hong Kong won 0.4 percent and Sydney put on 0.6 percent by the close.

Seoul surged 2.3 percent to a fresh record high, the day before a presidential election to find a successor to the impeached Park Geun-Hye.

However, Shanghai closed down 0.8 percent, with traders unimpressed by data showing China's exports and imports rose less than expected last month and slowed from March.

The market has also been hit by concerns about government moves to crack down on leveraged investing that was fuelling instability.

Energy firms from Australia to Hong Kong also bounced after Friday's sharp losses, as traders tracked steadier oil prices, which on Friday hit five-month lows on fresh fears of a supply glut.

 

- Key figures around 1330 GMT - 

 

London - FTSE 100: UP 0.3 percent at 7,317.19 points

Frankfurt - DAX 30: DOWN 0.1 percent at 12,703.09

Paris - CAC 40: DOWN 0.8 percent at 5,386.89

EURO STOXX 50: DOWN 0.4 percent at 3,643.92

New York - Dow: DOWN 0.07 percent at 20,992.16

Tokyo - Nikkei 225: UP 2.3 percent at 19,895.70 (close)

Hong Kong - Hang Seng: UP 0.4 percent at 24,577.91 (close)

Shanghai - Composite: DOWN 0.8 percent at 3,078.61 (close)

Euro/dollar: DOWN at $1.0942 from $1.0997 at 2100 GMT Friday

Pound/dollar: DOWN at $1.2953 from $1.2980 

Dollar/yen: DOWN at 112.75 yen from 112.80 yen

Oil - Brent North Sea: UP 05 cents at $49.15 per barrel

Oil - West Texas Intermediate: DOWN 23 cents at $45.99

Source: AFP