The dollar hovered near five-month highs against the yen on Monday, boosting Japanese exporters such as Toyota Motor Corp, but surprisingly weak U.S. jobs data saw the U.S. currency cling to lows against the euro. Dollar-priced gold paused for breath after sharp gains in New York, while oil climbed on supply concerns in the face of rising demand and the disappointing jobs report sent bond prices higher. Suspected yen-weakening intervention on Friday to protect an export-led economic recovery -- estimated by some traders at $5 billion -- boosted the dollar and helped lift the Nikkei <.N225> 0.35 percent higher to 11,578.14 by midday, a new 21-month high. Toyota <7203.T> rose 1.8 percent to 3,990 yen, but traders said the market's recent rally, more than eight percent this year, was likely to lose steam.
"Continued buying from last week is supporting the market at the moment, but it (the market) really needs to take a breather after last week's rally. It can't just go up and up every day," said Yasuo Wada, head of sales at Meiwa Securities. MSCI's broadest index of Asia Pacific shares ex-Japan <.MSCIAPJ> was down 0.2 percent at 0215 GMT. Stock benchmarks elsewhere were up 0.5 percent in Australia <.AXJO> at a two-year high, 1.4 percent in Hong Kong <.HSI> and 0.6 percent in Taiwan <.TWII>. South Korea <.KS11> bucked the overall trend to fall 0.1 percent.
DOLLAR MIXED
U.S. businesses added just 21,000 jobs in February -- far short of the median forecast of 125,000 -- and government hiring was the only reason the non-farm payroll count rose. Friday's report diminished the chances of an interest rate rise this year. The dollar fell against most major currencies directly after the data, but surged against the yen on suspected intervention. The dollar stood at around 112.13 yen on Monday, off 0.1 percent from New York levels around 112.29 yen, while the euro was flat at $1.2365 after surging 1.5 percent on Friday. The jobs report deeply disappointed U.S. stock investors, but expectations of steady interest rates helped temper concern over the data. The blue chip Dow Jones industrial average closed up 0.07 percent at 10,595.55 on Friday, but the tech-heavy Nasdaq Composite Index dipped 0.36 percent to 2,047.63. Investors will get another glimpse into the health of the technology sector when Texas Instruments Inc. follows the lead of Intel Corp. and provides a first-quarter update after the market closes on Monday.
INTEL HITS TECHS
In South Korea, Samsung Electronics Co Ltd <005930.KS> fell 1.06 percent after a drop in U.S. peer Intel Corp on Friday, while LG Electronics Inc <066570.KS> fell 1.15 percent to 68,600 won. Shares of SK Corp <003600.KS> dived 7.13 percent to 39,700 won on concerns over corporate governance. Miners helped lift Australian shares, with BHP-Billiton up one percent at A$12.66 and rival Rio Tinto also up one percent at A$36.51 on firmer metal prices. Hong Kong shares were mostly higher but fixed line phone firm PCCW Ltd <0008.HK> fell five percent after it said it would spin off its porperty assets.
Bond traders took one look at February's anaemic jobs growth and decided the Fed probably will wait until after the November presidential election to raise interest rates. The jobs data boosted U.S. Treasury prices and had a knock-on effect on Japanese government bonds (JGBs). The yield on the benchmark cash 258th 10-year JGB <0#JPTSY=JBTC> was down as much as four basis points at 1.385 percent. U.S. oil was up about 0.03 percent at $37.27 a barrel, gold stood at $398.50/399.25 an ounce compared with $400.90/401.90 in New York.///