Written by Kevin Buckland
TOKYO, Oct 2 (Reuters) – Japanese stocks soared on Monday after the export-heavy Nikkei stock average fell to its lowest point in nearly a year and the United States avoided a government shutdown.
However, stock markets elsewhere were mixed as Australia’s oil and resource stocks were hurt by falling oil prices last week.
In addition, mainland China has been closed since Friday for Golden Week, which ends this weekend, while the Hong Kong market was on holiday, leading to weaker trading.
The Nikkei Stock Average was up 1.6% as of 0100 GMT, rebounding from last weekend’s lowest close in more than a month.
U.S. stock futures rose 0.6%, rebounding from Friday’s 0.3% decline in the S&P 500.
A last-minute stopgap funding bill over the weekend will allow the government to continue operations until Nov. 17, and will keep the release of key data, including Friday’s monthly payroll report, on schedule.
“Closure risk is only delayed, not eliminated,” TD Securities strategists said in a client note.
“A sense of reduced uncertainty is likely to bring some relief to the market,” he said, adding, “Market volatility is likely to remain high as investors wait for the next trigger.” “This is likely to be top-level data.”
The Bank of Japan’s quarterly Tankan survey showing improved business confidence also boosted Japanese stocks.
At the same time, the yen fell to 149.74 yen to the dollar on Monday, its lowest since Oct. 21, despite a pause in the broader rally in the U.S. currency after last week’s rise in the dollar index to a 10-month high. .
A weaker yen increases corporate profits earned overseas when remittances are made to the home country.
Elsewhere in the area, the atmosphere was quieter. South Korea’s Kospi rose 0.1%, while Australia’s benchmark stock index fell 0.05%.
Adding to the drag on energy and other resource stocks, Australian investors also became cautious ahead of Tuesday’s first Reserve Bank policy decision under new governor Michelle Bullock.
New Zealand’s central bank will decide on policy on Wednesday. The country’s stock index fell 0.5%.
The decline in Antipodean stocks came despite fresh signs that China’s economy, a major trading partner, may be stabilizing. A day after official figures recorded the first expansion in six months, a private data indicator showing factory activity over the weekend unexpectedly fell, but remained in expansion territory.
Crude oil rebounded somewhat from Friday’s 1% drop as positive news from the U.S. and China improved the demand outlook.
Brent crude oil futures for December rose 18 cents, or 0.2%, to $92.38 a barrel, after falling 90 cents at the end of last week. U.S. West Texas Intermediate crude oil futures rose 23 cents, or 0.3%, to $91.02 a barrel, after falling 92 cents on Friday.
(Reporting by Kevin Buckland; Editing by Edwina Gibbs)
