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Monday September 6th
US markets are closed due to Labor Day. Japan's stocks ended 2.1 percent higher, gaining for a fourth straight session amid hopes that the U.S. economy would not fall back into recession. The benchmark Nikkei rose 187.19 points to 9,301.32, above its 25-day moving average of 9,229. Some market participants cited buying by domestic investors and short-covering of futures by foreigners. Stocks in China rose to a near four-month high in heavy volume amid a global market rally, supported by gains in steel makers and oil companies on renewed confidence about global economic recovery. The key Shanghai Composite Index was up 1.54 percent at 2,696.3 points, extending last week's 1.7 percent rally as better-than-expected Chinese and U.S. economic data boosted sentiment to some extent. The steel sector fared well following a local report that the Hebei government ordered some mills to be shutdown. Oil slipped toward $74 per barrel on Monday as the end of the U.S. driving season and high levels of unemployment in the world's biggest oil consumer raised concerns over the outlook for demand. The U.S. Labor Day holiday, which marks the traditional end of American summer holidays when gasoline demand peaks, kept volume low in many markets. The New York Mercantile Exchange (NYMEX), home to benchmark U.S. crude futures also known as West Texas Intermediate or WTI, will combine trades from Sunday, Monday and Tuesday into one trading session, with a single settlement at Tuesday's close. The dollar dipped on Monday and looked poised to test a 15-year low against the yen after failing to retain gains made after U.S. jobs data, although caution about Japanese intervention deterred further yen buying. Less-dire-than-expected U.S. payrolls data last week eased market anxiety over chances of a global slowdown and boosted demand for the euro and growth-leveraged currencies. "When risk appetite comes back, both the dollar and the yen are weak. But because the dollar has low interest rates despite the U.S. twin deficits, its weakness tends to stand out even against the yen," said Tohru Sasaki, chief FX strategist at J.P. Morgan Chase Bank. "This shows the dollar/yen is unlikely to rise whether global markets are leaning towards risk taking or not," he said. The euro was little changed versus the dollar, having risen to $1.2905 earlier in the day, its highest in nearly three weeks. Market participants said they believe central banks in Asia, excluding Japan, are converting dollars into euros after they intervene in the market to rein in gains in their own currencies against the greenback. This is lending extra help to the euro, they said. Resistance is seen around $1.2920-35, a level where the currency was capped in mid-August.
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