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Asian stocks rose yesterday, driving a regional benchmark to a record, after a pickup in the US job market stoked optimism that the world's biggest economy will avoid a recession.
Hon Hai Precision Industry gained on speculation US consumer spending will keep climbing. China's CSI 300 Index rose to a new high, paced by Tsingtao Brewery, after retail sales jumped during the week-long National Day holiday.
The data "[point] to a soft landing in the US, which is the best scenario that investors could hope for," said Leslie Phang, who helps manage US$1 billion at Commonwealth Private Bank in Singapore. "We're seeing the Asian growth story assert itself and if global economies continue to perform all right, Asian companies will do very well."
China Minsheng Banking. rose in Shanghai after agreeing to buy a stake in UCBH Holdings, the biggest bank serving the Chinese community in the US.
China Mobile and Samsung Heavy Industries rallied after analysts raised their price forecasts for the stocks. Japan was closed for a holiday yesterday.
Hong Kong's Hang Seng Index jumped 2.1 per cent, headed for a record, while the CSI 300 Index climbed 1.6 per cent on this month's first day of trading in China. Benchmarks in Australia, South Korea, Singapore and the Philippines were also set for new highs.
US stocks rallied on Friday, lifting the Standard & Poor's 500 Index to a record, after the Labour Department said the number of jobs in the country increased by 110,000 in September, more than the 100,000 additions forecast by economists in a Bloomberg News survey.
The August figure was revised to an increase of 89,000 from a drop of 4000.
"The US jobs market is holding up despite the market's fears and that means the consumer is more likely to survive the recent turmoil," said Hans Kunnen, who helps manage the equivalent of $117 billion at Colonial First State Global Asset Management in Sydney. "The stars are aligned for the resources sector."
