LONDON/NEW YORK, 13 November 2003 — The euro jumped against the dollar yesterday on the eve of a release of US trade figures which many expected to show that the US deficit had deepened in September. The single European currency was at 1.1648 dollars in late European trading from 1.1513 late on Tuesday in New York. The dollar was at 108.54 yen from 108.75 on Tuesday.
Europe’s single currency rose as high as 1.1658 in late trades, its strongest level against the dollar since Oct. 31. With little to go by in terms of US or euro-zone economic indicators, dealers focused on the publication today of US trade figures for September. US stocks swung higher yesterday as buyers came off the sidelines after three losing sessions for Wall Street. The Dow Jones industrial average picked up 31.19 points, or 0.32 percent, to 9,768.98 while the NASDAQ composite added 15.39 points, or 0.80 percent, to 1,946.14 at 1630 GMT. The Standard and Poor’s 500 advanced 3.07 points or 0.29 percent to 1,049.64.
Asian share markets held firm, with the stability of Japan’s key Nikkei-225 index after recent falls giving investors in the region confidence. Seoul, Singapore and Sydney gained ground after they falling on the previous two days this week, while Hong Kong recovered earlier losses to end marginally lower.
Japanese share prices closed mixed, with bargain-hunting running into profit-taking to leave the market with no clear direction. The Tokyo Stock Exchange’s Nikkei-225 index rose 19.18 points or 0.19 percent to 10,226.22, off a low of 10,155.64 and a high of 10,328.91, while the broader Topix index of all first-section shares fell 1.15 points or 0.11 percent to 1,006.16.
Hong Kong share prices closed 0.27 percent lower in a technical correction but recovered earlier losses on buying in HSBC and China Mobile. HT Securities associate research director W.S. Lai said the market firmed from its mid-session levels after the Nikkei managed to close the day in positive territory. The key Hang Seng index lost 32.14 points to close at 11,971.48, while the Hang Seng November contract ended at 11,917, representing a discount of 54.48 points to the spot market.
Singapore share prices closed 1.08 percent firmer, recovering from early morning losses on blue chip support. The market’s higher closing was a surprise as sentiment had weakened after losses on Wall Street, a dealer at a local brokerage said. The Straits Times Index closed 18.41 points higher at 1,717.36 and the All-Singapore Equities index rose 4.45 points to 464.62.
South Korean shares rose 1.08 percent on foreign interest in large caps with a lackluster Wall Street and domestic labor unrest having little influence.