AFP, HONG KONG:  Most Asian stocks began the week in buoyant mood yesterday, cheering a strong pick-up in US job creation while weighing China’s weekend decision to lower its growth target but expand spending.
Energy firms were again among the biggest gainers as oil continued its recovery thanks to the jobs
data and as US producers cut the number of rigs in operation to combat a global supply glut that has hammered prices.
At the start of its annual policy congress Saturday China set a target of 6.5-7.0  per cent expansion this year—as expected—as it tries to combat a slowdown in global trade and to transition from dependence on exports and investments to consumer-led growth.
But in a two-hour speech, Premier Li Keqiang promised to loosen the money belt and projected the biggest budget deficit in several decades, putting on the back-burner its drive to combat bulging government debt.
He also pledged reform of state-owned enterprises, many of which are plagued by inefficiencies and
overcapacity.
“With the increase of the deficit ratio, stronger
fiscal stimulus will set a floor for growth and economic expansion is likely to become faster later this year,” China Merchants Securities analyst Sun Binbin told Bloomberg News.
China’s leaders have sought to reassure jittery global markets in recent weeks with a unified message that authorities still have the tools to keep the economy—a key driver of world growth—from a further slowdown.
Shanghai stocks ended up 0.8 percent, with investors also cheered by an expected delay in a plan to speed up initial public offerings.
Among other markets, Sydney rose one  per cent and Seoul put on 0.1 percent. There were also gains in Taipei, Wellington and Bangkok.
Hong Kong dipped 0.1 following last week’s gains, but Tokyo slipped 0.6  per cent after climbing around six  per cent over the course of last week.
Shares in Chinese telecoms equipment giant ZTE were suspended in Hong Kong and Shenzhen following a report it allegedly flouted export sanctions to Iran.
In early European trade London and Frankfurt fell 0.6 per cent while Paris dipped 0.5 percent.
More good news out of the United States also provided a platform from which to rally as the Labor Department reported the economy added 242,000 jobs in February.
While the data also showed a drop in wages the figures came after better-than-expected US reports on private jobs, the manufacturing sector, construction spending and auto sales.
The results came as some relief for markets, which in the first two months of the year were racked by concerns of a global recession as economies from China and Australia to Europe and the Americas struggle.
“It is highly unlikely that the world economy could go into recession. The US recovery remains intact and we have not had a global recession without a US recession in probably 100 years,” Matthew Sherwood, head of investment strategy at Perpetual in Sydney, said in an email to clients.
Oil prices pushed upwards again as US firms cut their rig count while traders grow increasingly confident producer giants led by Russia and Saudi Arabia will work to temper output.