Asia stock markets edge higher on US reprieve

HONG KONG (AFP) - Asia-Pacific stocks mostly edged higher on Thursday, relieved by a rise in the dollar in New York following some positive US economic data. Tokyos Nikkei index ended the day up 1.73 percent, or 164.58 points, at 9,653.92, after plunging 2.11pc the previous day. Sydney rose 0.54pc, led by resource stocks ahead of Rio Tintos first-half results, which after the close showed a 125pc jump in earnings. Trade was generally muted however as brokers await all-important US jobs data on Friday, widely expected to darken the outlook for the worlds largest economy. There were also lingering worries about recent falls in the dollar and any move by US authorities towards monetary easing. The greenback failed to extend gains after its earlier recovery in New York, buying 86.14 yen in Tokyo afternoon trade, down from 86.26 yen in New York late Wednesday. Earlier this week the dollar plummeted to eight-month lows around 85 yen on jitters about the pace of the US recovery. The euro, which topped 1.32 to the dollar to hit a three-month high this week, was trading at 1.3148 dollars, a shade lower than its New York rate of 1.3155 dollars. The single European currency fell to 113.28 yen from 113.56 yen. Fridays jobs data is important... If it turns out to be bad, it would prompt the FOMC to discuss additional monetary-easing measures, said Hideaki Inoue, senior dealer at Mitsubishi UFJ Trust and Banking. Car makers led the way higher in Tokyo, after reporting strong earnings for the April-June quarter. Toyota closed up 0.48 percent after raising its profit forecast for the year, while Nissan gained 2.77 percent and Honda 2.62 percent. Tyre makers followed, with Yokohama Rubber rising 1.54 percent. But Hong Kong rose just 1.84 points to 21,551.72 as traders grew cautious after a 2.5 percent rise over the previous three sessions. Cathay Pacific provided support with a 4.76 percent jump after reporting an eight-fold rise in first-half profits. Shanghai shares closed down 0.67 percent, or 17.76 points, at 2,620.76, partly on news that mainland regulators had asked banks to test the possible impact of a property price plunge on credit quality, brokers said. The China Banking Regulatory Commission ordered banks to conduct stress tests based on an extreme scenario in which property prices plunge by 50 percent, Dow Jones Newswires said. Investors were also wary ahead of Chinas July macroeconomic data due next week, traders said. US stocks closed higher Wednesday after stronger-than-expected data on private-sector job creation and growth in the US service sector in July, with the Dow rising 0.41pc. However data out Friday on US non-farm payrolls is expected to show already high unemployment nudging up as firms remain reluctant to hire in large numbers. Most economists believe July saw US non-farm payrolls fall 87,000 but the unemployment rate edge up to 9.6 percent.

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