You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Macy's to settle racial-profile case
    ALBANY, N.Y. – Macy’s will pay $650,000 to settle allegations of racial profiling at its flagship store in Manhattan’s Herald Square.
  • Nook gets tablet redesign
    NEW YORK – Barnes & Noble and Samsung have un­veiled a reading-focused tab­let that will replace the book­seller’s own Nook tablets.
  • Apple stock hits new high
    SAN FRANCISCO – Apple’s stock touched a new high Wednesday, reflecting investors’ renewed faith in CEO Tim Cook’s ability to outwit the competition and expand the technological hit factory built by the late Steve
Advertisement

Markets recover after US jobs disappointment

LONDON (AP) — Japanese shares were the standout once again on Monday as global markets recovered their poise following a sell-off at the end of last week after disappointing U.S. jobs data.

But with tensions mounting on the Korean peninsula, an outbreak of bird flu in China and Portugal under pressure to make more spending cuts, markets remained fragile.

"There's no shortage of geopolitical factors in play right now, ranging from the threat of all-out war in North Korea to the latest chapter in the eurozone saga," said Fawad Razaqzada, market strategist at GFT Markets.

In Europe, the FTSE 100 index of leading British shares was up 0.3 percent at 6,271 as was Germany's DAX, at 7,684. The CAC-40 in France was 0.7 percent higher at 3,688.

One stock market in Europe that was on the wane was Portugal's PSI 20, which was trading 0.8 percent lower at 5,591 after the prime minister announced that the country will have to make more spending cuts because the Constitutional Court blocked parts of its budget plan.

Wall Street was poised for a fairly steady opening, with both Dow futures and the broader S&P 500 futures up 0.3 percent. On Friday, stocks suffered after a government report showed that U.S. employers added just 88,000 jobs in March, half the average of the previous six months.

The closely watched report, issued Friday, was a letdown for investors, who had become more optimistic about the economy after recent positive signs on housing.

In terms of scheduled news, Monday will be fairly quiet in the U.S. but that won't last long. Aluminum giant Alcoa Inc. kicks off another U.S. corporate earnings reporting season after the markets close.

"We should get a better indication of company optimism on this point as U.S. earnings season starts," said Michael Hewson, senior market analyst at CMC Markets.

As well as a run of earnings this week, investors expect to get a steer from the U.S. Federal Reserve about whether the central bank plans to withdraw some of its monetary stimulus. Minutes to the last policy meeting of the Fed are due to be published Wednesday.

Earlier in Asia, investors had a raft of issues to deal with as well as their first response to Friday's U.S. payrolls figures.

The Nikkei in Tokyo piled on more gains as the yen's dramatic fall boosted the country's powerhouse export sector. The Japanese yen has weakened sharply since last Thursday's decision by the Bank of Japan to overhaul its monetary policy in a bid to snap Japan out of years of deflation.

The Nikkei 225 in Tokyo shot up 2.8 percent to close at 13,192.59, its highest close since August 2008. The dollar vaulted to 98.68 yen from 94.13 yen late Friday in New York.

A weaker currency can help make Japanese exports more price competitive in overseas markets. Suzuki Motor Corp. surged 8.1 percent. Sharp Corp. advanced 7.3 percent.

Elsewhere, South Korea's Kospi lost 0.4 percent to close at 1,918.69, its lowest level since November 2012 as tensions between the two Koreas remained elevated. North Korea has for weeks been threatening military or other action to punish South Korea and the U.S. for holding joint military drills.

"Compared to the past, the hostility of North Korea this time is extraordinary in some measures. In this regard, there is an impact to our financial markets to a certain degree," Hyun Oh-seok, South Korea's finance minister, told reporters. "We are closely monitoring the impact on financial markets and the economy."

Foreign investors sold more South Korean stocks than they bought for the fourth straight session Monday, while the local currency lost value as investors see growing risks of war on the Korean Peninsula. The dollar rose to 1,140.10 won, its highest level since July 26.

Hong Kong's Hang Seng index bounced between gains and losses as investors sized up the potential threat from an outbreak of a new bird flu strain that has sickened 21 people, killing six of them. All cases have been reported in the eastern part of China. The Hang Seng fell marginally to close at 21,718.05.

Health officials believe people are contracting the virus through direct contact with infected fowl and say there's no evidence the virus is spreading easily between people.

Oil prices edged higher, with the benchmark New York rate up 77 cents at $93.48 barrel.

___

AP Business Writers Pamela Sampson in Bangkok and Youkyung Lee from Seoul contributed.

Advertisement