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Stocks rise as strong US jobs data offset weak Chinese trade

by August 8, 2016 General

BEIJING (AP) ” Global stocks rose Monday after strong U.S. jobs data reassured investors that the world’s largest economy still is growing and boosted American stocks.

KEEPING SCORE: In early trading, France’s CAC 40 rose 1.5 percent to 4,410.55 and Germany’s DAX advanced 0.8 percent to 10,450.90. London’s FTSE 100 gained 0.4 percent to 6,818.25. On Friday, the CAC 40 rose 1.5 percent and the DAX advanced 1.4 percent, while the FTSE 100 was 0.8 percent higher. Wall Street looked set for more gains, with the future for the Standard & Poor’s 500 index up 0.2 percent and that for the Dow Jones industrial average up 0.1 percent.

ASIA’S DAY: Tokyo’s Nikkei 225 surged 2.4 percent to 16,650.57 and Hong Kong’s Hang Seng gained 1.6 percent to 22,494.76. The Shanghai Composite Index was up 0.9 percent at 3,004.28 and Sydney’s S&P-ASX 200 added 0.4 percent to 5,497.40. Seoul’s Kospi advanced 0.9 percent to 2,017.94 and India’s Sensex rose 0.2 percent to 28,143.82. Benchmarks in Taiwan, New Zealand and Thailand also rose, while Singapore retreated.

WALL STREET RISE: U.S. stocks jumped to record highs after the Labor Department said U.S. employers added 255,000 jobs in July ” far more than investors expected and the second straight month of strong gains after shaky reports this spring. Financial and technology stocks soared and investors sold the safe assets they have favored for most of this year. Consumer companies also made big gains.

The Dow Jones industrial average rose 191.48 points, or 1 percent, to 18,543.53. The Standard & Poor’s 500 index climbed 18.62 points, or 0.9 percent, to 2,182.87. The Nasdaq advanced 54.87 points, or 1.1 percent, to a record close of 5,221.12.

ANALYST’S COMMENT: “The market’s trepidations concerning the U.S. labor market are definitively in the rear view mirror after the second consecutive resilient report,” Stephen Innes of OANDA said in a report. Job gains in July “transcended even the most optimistic of expectations,” he said. “It is easy to check off good-news boxes within this stellar jobs report and tough to find any negatives.”

CHINA TRADE: China’s exports fell again in July compared with a year earlier while a decline in imports accelerated. Exports contracted 4.4 percent to $184.7 billion, a slight improvement over June’s 4.8 percent contraction. Imports fell 12.5 percent to $132.4 billion, accelerating from a decline of 8.4 percent. Weak global demand has hampered efforts to shore up Chinese trade and stave off job losses in export industries. Investors also were looking ahead to Chinese inflation and retail sales data due out this week for signals on which direction the world’s second-largest economy is headed.

ENERGY: Benchmark U.S. crude gained 52 cents to $42.32 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 13 cents on Friday to close at $41.80. Brent crude, used to price international oils, added 51 cents to $44.77 per barrel in London. It lost 2 cents on Friday to close at $44.27.

CURRENCY: The dollar rose to 102.28 yen from Friday’s 101.82 yen. The euro edged up to $1.1089 from $1.1087.

This story has been automatically published from the Associated Press wire which uses US spellings