The Japan Times - Stocks extend gains as US data reassures

Equities enjoyed a positive start to the week after Fed boss Jerome Powell's insistence Friday that monetary policy would be based on a range of indicators fuelled hope that his campaign of raising interest rates to reduce inflation has drawn to a close.

In addition to inflation, Fed policymakers have been concerned about the red-hot US jobs market, which encourages wage gains that could push up prices.

The JOLTS survey released Tuesday showed the number of US job openings dipped to 8.8 million at the end of July, with little change in the number of workers hired and let go.

"From the Fed's perspective, the week is off to a promising start with the JOLTS job opening report much softer than expected, alongside downward revisions to the previous month," said market analyst Craig Erlam at OANDA trading platform.

"The Fed needs to see a softer labor market to be confident that price pressures aren't just abating but substantially and sustainably and this report is a move in the right direction," he added.

The drop in US consumer confidence in August will also likely reassure Fed policymakers, who next meet on interest rates in September, that its efforts to cool the economy is working.

This week also sees the release of the US central bank's preferred gauge of inflation, the personal consumption expenditures (PCE) price index, as well as factory activity and non-farm payrolls data for August.

The "focus is on US jobs and inflation data out this week for clues into the resilience of the US economy as well as the Fed's next move," noted Victoria Scholar, head of investment at Interactive Investor.

While inflation is easing, Fed officials have warned it remains too high at 3.2 percent -- and that borrowing costs might have to rise or at least remain elevated until they are satisfied prices have been tamed.

That, however, has led to concerns that they could deal a blow to the economy.

"Investors want to see economic releases this week that suggest activity is slowing enough to keep further rate hikes at bay, but not too slow to indicate the economy is headed for a recession," said Anthony Saglimbene at Ameriprise.

Wall Street stocks were higher in late morning trading, with the Dow adding 0.4 percent, but the broader S&P 500 rose 0.9 percent and the tech-heavy Nasdaq jumped 1.4 percent.

The dollar, which had been higher against major rivals ahead of Tuesday's data, slid lower.

In Europe, Paris and Frankfurt stocks rose, while London's FTSE 100 index jumped 1.7 percent, catching up with strong eurozone gains on Monday when trading in Britain paused for a public holiday.

In Asia, Hong Kong and Shanghai enjoyed big gains following fresh promises of help for China's economy, but worries about the outlook continue to dampen sentiment, with authorities facing growing calls for bigger stimulus to revive growth.

Gas prices climbed on supply concerns caused by a looming production strike in Australia, and oil futures also rose.

- Key figures around 1530 GMT -

New York - Dow: UP 0.4 percent at 34,698.75 points

London - FTSE 100: UP 1.7 percent at 7,464.99 (close)

Frankfurt - DAX: UP 0.9 percent at 15,930.88 (close)

Paris - CAC 40: UP 0.7 percent at 7,373.43 (close)

EURO STOXX 50: UP 0.8 percent at 4,326.47 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 32,226.97 (close)

Hong Kong - Hang Seng Index: UP 2.0 percent at 18,484.03 (close)

Shanghai - Composite: UP 1.2 percent at 3,135.89 (close)

Dollar/yen: DOWN at 146.05 yen from 146.50 yen on Monday

Euro/dollar: UP at $1.0845 from $1.0820

Pound/dollar: UP at $1.2614 from $1.2600

Euro/pound: UP at 85.97 pence from 85.85 pence

Brent North Sea crude: UP 0.6 percent at $84.92 per barrel

West Texas Intermediate: UP 0.6 percent at $80.59 per barrel

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T.Kobayashi--JT