Global shares rise on Wall Street gain on U.S. jobs report
TOKYO - Global shares rose Monday after Wall Street rose on a strong U.S. employment report and as investors recovered gradually from post-Brexit jitters.
France's CAC 40 gained 1.2 percent in early trading to 4,240.56, while Germany's DAX was up 1.4 percent at 9,766.67. Britain's FTSE 100 added 0.7 percent to 6,634.28.
U.S. shares were set to drift higher with Dow futures adding nearly 0.5 percent and S&P 500 futures adding 0.4 percent.
Japan's benchmark Nikkei 225 surged 4.0 percent to finish at 15,708.82, following a weekend election that landed the ruling coalition a resounding victory, ensuring stability and more stimulus spending. South Korea's Kospi gained 1.3 percent to 1,988.54. Hong Kong's Hang Seng rose 1.5 percent to 20,872.56, while the Shanghai Composite was up 0.2 percent at 2,994.92. Other Asian markets were also higher.
Markets were cheered by a strong June job report out of the U.S. that sent Wall Street to nearly record highs. The Labor Department said U.S. employers added 287,000 jobs last month. That was far more than analysts expected, and after weak reports from April and May, it suggests the economy and job market haven't run out of steam. A strong American economy is a boon to Asia, which relies on exports.
"While the US equity market response is encouraging, it is important not to factor too much into one single monthly report, as more data is needed to confirm that the dismal May jobs report was an aberration," warned Stephen Innes, senior trader at OANDA Asia Pacific.
Benchmark U.S. crude sank 43 cents to $44.98 a barrel in New York. It added 27 cents to $45.41 a barrel Friday. Brent crude, a standard for international oil prices, lost 39 cents to $46.37 a barrel in London.
The dollar rose to 101.94 yen from 100.58 yen late last week in Asia. The euro slipped to $1.1027 from $1.1080.