Asian stock markets follow Wall Street higher

Asian stock markets rose on Thursday after Wall Street turned in its biggest daily gain since July despite uncertainty about the global outlook.

Benchmarks in Shanghai, Tokyo, Seoul and Sydney all advanced.

Wall Street's benchmark S&P 500 index gained 1.5 per cent on Wednesday after a report on hiring that some analyst said might indicate the US job market recovery could be fading.

Investors have been encouraged by central bank infusions of credit into struggling economies and hopes for a vaccine to end the coronavirus pandemic that has plunged the world into its deepest slump since the 1930s.

Forecasters warn the stock market recovery might be running too far ahead of economic activity as the United States and some other countries reimpose anti-virus controls that hamper business.

“The irony of market exuberance is rich,” said Mizuho Bank in a report.

“Record highs on Wall St make a mockery of policymakers grasping for recourse to the worst downturn in decades.”

The Shanghai Composite Index rose 0.2 per cent to 3,413.13 while the Nikkei 225 in Tokyo gained 1.3 per cent to 23,556.26. The Hang Seng in Hong Kong added 0.2 per cent to 25,189.24.

The Kospi in Seoul advanced 1.5 per cent to 2,399.23 and Sydney's S&P-ASX 200 was up 1 per cent at 6,127.60.

New Zealand gained while Singapore and Jakarta retreated.

US stocks have gained despite lack of agreement in Congress on a new economic aid package with additional unemployment benefits to support consumer spending.

A report on Wednesday by payroll processor ADP, widely watched as a forerunner of government employment data due out Friday, showed the private sector added 428,000 jobs in August, less than half the 1 million expected by forecasters.

Analysts said that could be a warning sign the job market is cooling after some US states reimposed anti-virus controls and the expiration of supplemental unemployment benefits cut into consumer spending.

"Bullish stock market sentiment seems to be nearing a tentative peak as the labor market recovery stalls," Edward Moya of Oanda said in a report.

Also Wednesday, the US Federal Reserve said its August survey of businesses found enduring uncertainty over the pandemic and the harm it causes to consumer and business activity.

The S&P 500 rose to 3,580.84. The index is up 10.8 per cent this year following a five-month streak of gains. The Dow Jones Industrial Average rose 1.6 per cent to 29,100.50.

The Nasdaq composite added 1 per cent to 12,056.44. The tech-heavy Nasdaq is up 34.4 per cent, driven by gains for Apple and other technology giants that investors believe are safe bets as the public spends more time on internet-connected devices.

Health care and communications stocks also helped to drive Wednesday's rally.

Benchmark US crude oil for October delivery gained 15 cents to $41.66 per barrel in electronic trading on the New York Mercantile Exchange. The contract slid $1.25 on Wednesday to $41.51. Brent crude, the basis for pricing international oils, added 8 cents to $44.51 per barrel in London. It dropped $1.15 the previous session to $44.43 a barrel.

The dollar rose to 106.24 yen from 106.16 yen on Wednesday. The euro declined to $1.1826 from $1.1855.