On Friday, Asian shares rose to a three-year peak though the US dollar inched away from overnight highs hit on U.S. jobs data that underscored the strength of the economic recovery.
After recent gains, European stocks were seen taking a breather with financial spreadbetters expecting Britain’s FTSE 100 to open 3 points higher and Germany’s DAX to open between flat and 1 point higher.
“Given the strong gains seen already this week, and the absence of U.S. markets for the 4th July Independence Day long weekend, it seems likely that we will probably see a fairly quiet end to what has been a very positive week, with European markets set to open pretty much where they finished off yesterday,” said CMC Markets senior analyst Michael Hewson in a note to clients.
Japan’s Nikkei stock average rose 0.6 percent to hit a 5-1/2-month high. France’s CAC 40 was expected to edge 7 points lower, or 0.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent.
“The data is driving investors today, and there is no incentive to sell,” said Kyoya Okazawa, head of global equities and commodity derivatives at BNP Paribas in Tokyo.
U.S. nonfarm payrolls rose by 288,000 last month and the unemployment rate fell to 6.1 percent.
“The dollar’s gains look limited considering how strong the jobs data was, as participants are still unsure how U.S. inflation pans out,” said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
“The possibility of Fed’s Chair Janet Yellen shifting to a more hawkish stance has added to the uncertainty. Upcoming data such as retail sales, consumer prices and personal consumption expenditure (PCE) may help clear the mist, if they point to an inflationary trend taking hold.”